Corporation tax rates from January 1st, 2024

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%.
Companies not registered under the Small Business Development Act, Cap. 318C but where (a) the gross income does not exceed BBD $2 million; (b) the paid-up capital does not exceed BBD $1,000,000; (c) the number of employees does not exceed 25 persons; and (d) at least 75% of the shares of the company are beneficially owned by a resident of Barbados, will be subject to a tax rate of 5.5%. Where a company is a member of a group, all members of that group must meet the foregoing criteria (a) through (d) to be eligible. ^[1]
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.

[1] The reduced rate of corporation tax of 5.5% applies to eligible companies notwithstanding the Small Business Development Act, Cap. 318C pursuant to Policy Note No. OGC 08/2025 published by the Office of the General Counsel in January, 2025. The Policy Note retroactively applies from January 1st, 2024.