Compensatory income credit is a scheme managed by the Barbados Revenue Authority giving low-income employed individuals who earn more than BDS $25,000 but not exceeding BDS $35,000 a year the right to claim back the income tax paid during the tax year.
Persons who are eligible
Any person who is tax resident in Barbados is eligible if they—
- are not self employed;
- are not in receipt of income from goods and services; and
- earned a gross income of more than BDS $25,000 but not exceeding BDS $35,000 during the tax year.
How to submit a claim
You must have a Tax Identification Number (TIN) and your employer must continue to deduct and remit PAYE to the Barbados Revenue Authority even if you are entitled to compensatory income credit.
Persons may submit a claim for compensatory income credit via the TAMIS online portal. It must be filed within two years of the tax year being claimed. For example, a claim against the 2020 tax year must be filed as part of the 2021 or 2022 income tax return.
What is a Tax Identification Number (TIN)?
This is a unique 13-digit number issued and used by the Barbados Revenue Authority to identify taxpayers. It must be supplied when filing tax returns or submitting claims for tax refunds/credits.
If you don't have a Tax Identification Number (TIN), you must register via the TAMIS online portal. If your registration is approved, you will be issued with a Tax Identification Number (TIN).
It is a legal requirement for persons who earn more than BDS $25,000 a year to submit income tax returns to the Barbados Revenue Authority. If you are employed, this is the responsibility of your employer under the PAYE system. This applies whether or not you are eligible for compensatory income credit.
