Barbados

Corporate tax reform

On 7 November 2023, the Prime Minister (PM) of Barbados and Minister of Finance, delivered a Ministerial Statement on international tax developments and various proposed amendments to the Income Tax Act.

Based on the PM’s statement, effective 1 January 2024, the following corporation tax rates are applicable:

• a company that is not a member of a multinational enterprise (MNE) group; or a company that is a member of a MNE group with a consolidated revenue of Euro 750m or more and subject to the criteria set below – 9%;
• a company that is a member of a MNE group with a consolidated revenue of Euro 750m or more and not subject to the criteria set out below- declining sliding scale rates of 5.5% to 1%;
• a company registered under the Small Business Development Act – 5.5%;
• a company conducting general or life insurance business – 0% or 2% depending on the class of insurance; and
• an international shipping entity – declining sliding scale rates of 5.5% to 1%.

A member of an MNE which is subject to the conditions set out below, may be subject to an additional “top up” tax such that the entity’s effective tax rate will be at least 15%.  

Criteria for taxation at the rate of 9% and top up tax

Where the company is part of an MNE group with consolidated revenue of Euro 750M or more and:

• the ultimate parent entity or the intermediate parent entity of the company is located in a jurisdiction that has implemented a top-up tax on the MNE group; or
• the permanent establishment or subsidiary under common ownership or control of the company is located in a jurisdiction that has implemented a top-up tax on the MNE group.

The Norwegian government terminated its tax treaty with Barbados effective 1 January 2024.