Business Barbados

Specific transactions originating in Barbados are subject to a withholding tax which must be remitted to the Commissioner of Inland Revenue.[1]

The following are the rates of tax applicable to payments made between Barbados residents:

Amount

Rate%

Interest over BDS$100 paid to Barbados resident individuals

12.5[2]

Interest on Barbados government securities

12.5

Ordinary dividends paid in cash to individuals

12.5[3]

Dividends received from shares under a dividend re-investment plan but restricted to 75% of the dividend up to BDS$7,500

NIL

The following are the basic rates applicable to remittances made to a non-resident.

Income

Rate (%)

Rents

25

Interest

15

Royalties

15

Dividends from taxed profits

15[4]

Dividends from untaxed profits

25

Management and technical aid fees

15

Services other than management

25

Interest from Barbados government securities

NIL

A branch operating in Barbados pays an additional 10% on its after-tax profits if those profits are remitted or deemed to be remitted to its non-resident head office.

These rates may be lowered subject to the provisions of a double taxation treaty.


[1] Generally, payments made between Barbados companies are not subject to withholding tax in Barbados.

[2] Generally, payments made between Barbados resident individuals are not subject to withholding tax in Barbados.

[3] This rate represents the full Barbados tax liability in respect of this amount.

[4] This rate is reduced to 0% if the dividends paid are derived from foreign sources.