TAX NATIVES
GLOBAL
Barbados
Last Updated 11/11/2024
AT A GLANCE
Introduction:
Dive into the beautiful Caribbean island of Barbados, exploring its history, economy, and tax system in a way that’s easy to understand for everyone.
A Historical Milestone:
Barbados, a picturesque island located on the eastern edge of the Caribbean, became an independent nation in 1966. While it retained connections to the British monarchy through the Governor General, the island nation transitioned into a parliamentary republic on November 30, 2021. The president, elected indirectly, serves as the ceremonial head of state, while the prime minister holds the role of head of government. Bridgetown is the bustling capital city, and English is the official language.
The Barbados dollar (BBD) is the local currency, pegged to the United States dollar at a rate of USD 1 = BBD 2.
Economic Evolution:
Initially relying heavily on sugar agriculture, Barbados’ economy has evolved since the 1970s to become a largely free-enterprise, open-market system. The island now focuses on four main industries: tourism, international financial services, agriculture, and manufacturing. Additionally, construction and real estate services have experienced significant growth. The country aims to achieve stable economic growth by boosting foreign exchange earnings and generating employment, with a particular emphasis on tourism and international financial services.
Key Tax Rates and Due Dates:
- Corporate income tax (CIT) rates range from 5.5% to 1%.
- CIT return due dates vary based on the fiscal year end: 15 March for companies with fiscal year ending between 1 January and 30 September, and 15 June for companies with fiscal year ending between 1 October and 31 December.
- Personal income tax (PIT) rates stand at 28.5%.
- PIT return due date is set at 30 April.
- Standard value-added tax (VAT) rate is 17.5%.
- Withholding tax (WHT) rates on dividends, interest, and royalties vary for residents and non-residents.
- There are no capital gains tax, net wealth/worth tax, inheritance tax, or gift tax rates in Barbados.
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