Barbados

Overview

Last reviewed - 05 August 2021

Barbados, the eastern-most Caribbean island, gained full independence in 1966 and maintains ties to the British monarchy, represented in Barbados by the Governor General. Barbados is a parliamentary democracy and a Commonwealth realm. Its capital city is Bridgetown, and the official language is English. The currency of Barbados is the Barbados dollar (BBD), which is pegged to the United States dollar (USD) at USD 1 = BBD 2.

Barbados has a largely free-enterprise, small open economy that was, until the 1970s, based primarily on sugar agriculture. Barbados now has four key productive industries: tourism, international financial services, agriculture, and manufacturing. Construction and real estate services have also increased significantly. The priority in economic growth is the generation of steady growth through foreign exchange earnings and employment generation, with special emphasis on tourism and international financial services.

PwC’s tax advisors in Barbados use their knowledge of taxation policies and legislation on behalf of our local, regional, and international clients, whether they are individuals, public companies, or private companies, including those licensed as international business companies. As part of PwC's worldwide network of tax experts, our advisors are also able to offer a truly international service, ensuring compliance on the part of local companies seeking to do business internationally and foreign investors wishing to establish operations in Barbados. The professionals in Barbados’ Tax Services division provide a wide array of services, including compliance (corporate and personal), tax accounting, tax planning, tax advocacy, tax registrations, exchange control applications, immigration services, and severance.

Quick rates and dates

Corporate income tax (CIT) rates
Headline CIT rate (%)

5.5% to 1%

Corporate income tax (CIT) due dates
CIT return due date

For companies with fiscal year ending between 1 January and 30 September: 15 March;

For companies with fiscal year ending between 1 October and 31 December: 15 June.

CIT final payment due date

15 March;

15 June

CIT estimated payment due dates

Companies with fiscal year ending between 1 January and 30 September are required to make one instalment on or before 15 September;

Companies with fiscal year ending between 1 October and 31 December are required to make two instalments on or before 15 December and 15 March.

Personal income tax (PIT) rates
Headline PIT rate (%)

28.5

Personal income tax (PIT) due dates
PIT return due date

30 April

PIT final payment due date

30 September

PIT estimated payment due dates

PAYE for salaries.

Three instalments of 25% on 15 June, 15 September, and 15 December for income from business or rent.

Value-added tax (VAT) rates
Standard VAT rate (%)

17.5

Withholding tax (WHT) rates
WHT rates (%) (Dividends/Interest/Royalties)

Resident individual: 15 or NA if paid out of foreign source income / 15 / NA

Resident company: NA / 15 / NA

Non-resident individual or company: 5 or NA if paid out of foreign source income / NA / NA

Capital gains tax (CGT) rates
Headline corporate capital gains tax rate (%)

NA

Headline individual capital gains tax rate (%)

NA

Net wealth/worth tax rates
Headline net wealth/worth tax rate (%)

NA

Inheritance and gift tax rates
Headline inheritance tax rate (%)

NA

Headline gift tax rate (%)

NA

NA stands for Not Applicable (i.e. the territory does not have the indicated tax or requirement)

NP stands for Not Provided (i.e. the information is not currently provided in this chart)

All information in this chart is up to date as of the 'Last reviewed' date on the corresponding territory Overview page. This chart has been prepared for general guidance on matters of interest only, and does not constitute professional advice. You should not act upon the information contained in this chart without obtaining specific professional advice. No representation or warranty (express or implied) is given as to the accuracy or completeness of the information contained in this chart, and, to the extent permitted by law, PwC does not accept or assume any liability, responsibility or duty of care for any consequences of you or anyone else acting, or refraining to act, in reliance on the information contained in this chart or for any decision based on it.