Specific transactions originating in Barbados are subject to a withholding tax which must be remitted to the Commissioner of Inland Revenue.
The following are the rates of tax applicable to payments made between Barbados residents:
|Interest over BDS$100 paid to Barbados resident individuals|
|Interest on Barbados government securities|
|Ordinary dividends paid in cash to individuals|
|Dividends received from shares under a dividend re-investment plan but restricted to 75% of the dividend up to BDS$7,500|
The following are the basic rates applicable to remittances made to a non-resident.
|Dividends from taxed profits|
|Dividends from untaxed profits|
|Management and technical aid fees|
|Services other than management|
|Interest from Barbados government securities|
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.