Corporation tax

Table of Contents

Any company resident in Barbados is taxed on its worldwide income, whereas a non-resident company whose 'mind and management' is outside Barbados is only taxed on the portion of its income derived in Barbados.

Corporation tax is payable on a company's income less any allowable expenses incurred for the purposes of acquiring that income. The portion of income that is taxable is called the 'assessable income'.

Corporation tax rates

From Income Year 2024 effective January 1st, 2024, corporation tax will be 9%, subject to the following regimes:

• Any company who is a Class 1 insurance business will be subject to a corporation tax rate of 0%.
• Any company who is a Class 2 or Class 3 insurance business will be subject to a corporation tax rate of 2%.
• Any company who is an international shipping business will be subject to the corporation tax rates established in 2019.
• Any company who is registered under the Small Business Development Act, Cap. 318C and whose gross income does not exceed BBD $2 million will be subject to a corporation tax rate of 5.5%.
• An approved lender under the Mortgage Insurance Act, Cap. 233 may be subject to a corporation tax rate of 12.5% by virtue of Section 16(1) of that Act. Persons to whom that Act applies should seek legal advice, as that Act was not amended by Parliament when the corporation tax rates were changed in 2019.
• Any company who is an in-scope Multinational Enterprise for the purposes of the Global Anti-Base Erosion Rules and whose Ultimate Parent Entity is based in a jurisdiction which has implemented an Income Inclusion Rule or Undertaxed Profits Rule will be subject to a top-up tax that brings the effective tax rate to 15%.
• Any company who is an in-scope Multinational Enterprise for the purposes of the Global Anti-Base Erosion Rules and whose Ultimate Parent Entity is based in a jurisdiction which has not implemented an Income Inclusion Rule, or whose Constituent Entities are not subject to an Income Inclusion Rule or an Undertaxed Profits Rule, will be subject to the corporation tax rates established in 2019.

Legacy rates (2019)

These rates applied to all companies between January 1st, 2019 and December 31st, 2023. For the avoidance of doubt, these rates also apply to revenue earned before January 1st, 2024 even if it falls within a company's Income Year 2024. ^[1]‍

For international shipping companies and in-scope Multinational Enterprises that are not subject to a Qualifying Domestic Minimum Top-Up Tax, these rates continue to apply from January 1st, 2024.

Up to BBD $1 million

5.5%

Exceeding BBD $1 million but not exceeding BBD $20 million

3%

Exceeding BBD $20 million but not exceeding BBD $30 million

2.5%

Any amount in excess of BBD $30 million

1%