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 corporate income tax (CIT) rates are applicable:

• A company that is not a member of a multinational enterprise (MNE) group or a company that is a member of an MNE group with consolidated revenue of 750 million euros (EUR) or more and subject to the criteria set below: 9%.
• A company that is a member of an MNE group with a consolidated revenue of EUR 750 million 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.
• An international shipping entity: Declining sliding scale rates of 5.5% to 1%.

A member of an MNE that 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 EUR 750 million 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 (PE) 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.

Treaties

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