Reverse Tax Credit
For income year 2013 to income year 2015, resident individuals earning less than BBD18,000 are entitled to a reverse tax credit of BBD650. Previously the tax credit was BBD1,300. Since this is expected to be a temporary measure an amendment will be required for income year 2016.

Medical Expenses

Effective income year 2012, individuals 40 years of age and over, who incur certain medical expenses can now claim a deduction not exceeding BBD 750 in an income year.

Tax Payable by Individuals

Effective 1 August 2012, the rates are 17.5% on the first BBD 35,000 of taxable income and 35% thereafter. For income year 2012 only, the tax rates are 18.73% on the first BBD 28,700 of taxable income and 35% thereafter. For income year 2013 and thereafter, the rates are 17.5% on the first BBD 35,000 of taxable income and 35% thereafter.

Junior Stock Exchange

From income year 2012, firms meeting certain criteria and listed on the Junior Stock market of the Barbados Stock Exchange will be provided with a tax incentive for a period of 10 years as follows: a 25% tax exemption for the first 5 years of the 10 year period; and a 50% tax exemption for the second 10 year period.

With effect from 2012, there shall be an exemption from withholding tax on dividends and other distributions from companies listed on the Junior Stock Market of the Barbados Stock Exchange.

Tax Incentives in Renewable Energy Industry

For a person carrying on an eligible business the following are noteworthy:

  • income tax holiday for a period of 10 years to a developer, manufacturer or installer of renewable energy systems
  • deduction of interest paid on loans in respect of the construction of a new facility or upgrading of an existing property to enable the generation, supply and sale of electricity from a renewable energy source of up to 150%
  • deduction of amounts actually expended on staff training in the generation and sale of electricity from a renewable energy source; or in the installation and servicing of renewable energy electricity systems or energy efficient products of up to 150%
  • deduction of amounts actually expended in the marketing of products that are for the generation and sale of electricity from a renewable energy source; or the marketing of products that are related to the installation and servicing of renewable energy electricity systems or energy efficient products of up to 150%.
  • deduction of amounts expended in respect of product development and the conduct of research related directly to the generation and sale of electricity from a renewable energy source; or the installation and servicing of renewable energy electricity systems or energy efficient products of up to 150%

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KPMG
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KPMG is a global network of professional firms providing Audit, Tax and Advisory services. We operate in 150 countries and have 138,000 people working in member firms around the world. The independent member firms of the KPMG network are affiliated with KPMG International Cooperative ("KPMG International"), a Swiss entity. Each KPMG firm is a legally distinct and separate entity and describes itself as such.