On November 7th, 2023, the Minister of Finance announced major changes to Corporation Tax effective January 1st, 2024.
The 5.5% to 1% sliding scale corporation tax regime is being abolished for all companies, except:
- International shipping companies.
- Multinational enterprises subject to the Global Anti-Base Erosion Rules and whose Ultimate Parent Entity is based in any 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.
All other companies will be subject to a corporation tax rate of 9%, except:
- Companies registered as a Class 1 insurance business will be subject to a tax rate of 0%.
- Companies registered as a Class 2 or Class 3 insurance business will be subject to a tax rate of 2%.
- Companies registered under the Small Business Development Act, Cap. 318C and whose gross income does not exceed BBD $2 million will be subject to a tax rate of 5.5%.
- Multinational enterprises subject to 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 tax rate of 9% plus a top-up tax that brings the effective tax rate to 15%.
- 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 this Act applies should seek legal advice, as that Act was not amended by Parliament when the corporation tax rates were changed in 2019.
Learn more about the new Corporation tax rates.
Go Back