Subsequent to the amendment to the Income Tax Act, Cap. 73 issued on 7 May 2024, and further to the requirement of prepayments of Multinational Entities, we share the Guidance Note issued by the Barbados Revenue Authority (“BRA”) on the requirement for all companies to file a prepayment return and make monthly prepayments. This can also be found directly on the BRA website here.

We note that monthly prepayments do not apply to a company that has gross income less than BBD 2 million and is registered as an approved small business under the Small Business Development Act.

We draw your attention to the following updates:

  • Prepayments are calculated based on the company’s last filed tax return.
  • Monthly prepayment must be paid no later than the 15th day of each calendar month through the Global Relations Portal up to 31 March 2025, at which point, the obligation will be transferred to BRA’s TAMIS portal.
  • Companies subject to monthly prepayments shall complete the required Corporation Tax Prepayment Return online
    • There is a penalty for non-payment or Late payment as outlined at the bottom of Page three.
    • What remains unclear is whether a company that has no activity or was in a loss in previous year, must file a prepayment return.
  • Newly formed companies are required to enter an estimate of taxable income and thereafter make the appropriate prepayments.

As always, this bulletin is for information purposes and does not constitute as tax advice for your particular entity. If you have any questions and/or require any assistance, please reach out to any of the Deloitte team.