Barbados

A corporation is deemed to be resident in Barbados if its management and control is exercised in Barbados.

Permanent establishment (PE)

The concept of a PE is described within a number of Barbados’s double taxation agreements (DTAs). A PE is, in general, created in line with the Organisation for Economic Co-operation and Development (OECD) Model Convention and is defined in domestic legislation as:

• a company with a fixed place of business through which the business is wholly or partly carried on, including
  • a branch
  • a place of management
  • an office
  • a factory
  • a workshop
  • a warehouse
  • a building site or construction or assembly project, or
  • a quarry or place of extraction of natural resources, or
• where the company does not have a fixed place of business, the principal place in which the company’s business is conducted.

Under domestic legislation, a non-resident person is deemed to have been carrying on business in Barbados, and hence required to file a CIT return, where in an income year such a non-resident person:

• produced, grew, mined, created, manufactured, fabricated, improved, packed, preserved, or constructed, in whole or in part, anything in Barbados, whether or not they exported that thing without settling it prior to exportation, or
• solicited orders or offered anything for sale in Barbados through a factor, agent, or servant, whether the contract or transaction was to be completed inside or outside Barbados or partly in and outside Barbados.

In either of the circumstances mentioned above, the non-resident shall be deemed to have been carrying on business in Barbados in that income year and the income of that business shall be deemed to be income derived from Barbados for that income year.