Barbados

Taxable period

CIT returns are prepared on a fiscal-year basis.

Tax returns

Companies with fiscal years ending between 1 January and 30 September (both dates inclusive) are required to file a CIT return on or before 15 March in the year following the end of the fiscal period. Companies with fiscal years ending any time between 1 October and 31 December (both dates inclusive) are required to file a CIT return on or before 15 June in the year following the end of the fiscal period.

The Barbados Revenue Authority has instituted an online filing system, and CIT returns must be filed online using the online filing system known as TAMIS.

Payment of tax

Companies with fiscal years ending between 1 January and 30 September (both dates inclusive) are required to make an instalment of CIT for the income year in which the fiscal period ends on or before 15 September of that year. The instalment is 50% of the net CIT payable for the preceding income year. The remainder of CIT due (if any) must be paid on filing of the CIT return by 15 March of the following year.

Companies with fiscal years ending between 1 October and 31 December (both dates inclusive) are required to make two instalments of CIT for the income year in which the fiscal period ends on or before 15 December of that year and 15 March of the following year. The instalments are each 50% of the net CIT payable for the preceding income year. The remainder of CIT due (if any) must be paid on filing of the CIT return by 15 June of the following year.

Certain companies are now required to prepay CIT monthly in an amount equal to one-twelfth of the tax payable on the taxable income for the income year before the preceding income year. Prepayments must be paid no later than the 15th day of each calendar month. Exemptions from monthly prepayments may apply for income year 2024 only if any one of the following criteria is satisfied:

• resident companies that are not members of a large MNE group, or
• resident companies that are members of an MNE group, with an annual consolidated revenue of EUR 750 million or more, whose ultimate parent company or intermediary parent companies are located in a jurisdiction that has not enacted top-up tax legislation.

For companies with fiscal years ending between 1 January and 30 September (both dates inclusive), any remainder of CIT due must be paid on filing of the CIT return by 15 March of the following year.

For companies with fiscal years ending between 1 October and 31 December (both dates inclusive), any remainder of CIT due must be paid on filing of the CIT return by 15 June of the following year.

It is possible to apply for a reduction or waiver in the instalments if lower profits are anticipated in the current year when compared with those of the preceding year.

Penalties

The penalties and interest for failing to file a return on time and pay the CIT due are as follows:

• Penalty for failing to file a CIT return by the due date is BBD 500 plus 5% of the tax assessed at the due date.
• Penalty for failing to pay CIT by the due date is 5% of the tax assessed and unpaid at the due date.
• Interest charge of 1% per month on the tax and penalties calculated for each month during which any amount of tax and penalties remain unpaid on the largest amount of tax and penalties that were due and unpaid at any time during that month.

The penalty for failing to make an instalment of CIT by the due date is 10% of the CIT instalment due, plus interest at 0.5% per month on the CIT instalment outstanding.

Tax audit process

A person authorised by the Commissioner may, at any reasonable time, audit the books and records, or other documents that may relate to the information that should be in the books or records, examine property, request reasonable assistance from the owner, or, as necessary, seize or retain any documents that may be relevant.

Statute of limitations

Every person required to deliver a return of assessable income for an income year shall keep adequate records and shall retain every such record or voucher for a period of up to five years after the end of the relevant income year, unless the Commissioner otherwise directs, before the disposal of such records. Every person carrying on a business must obtain written permission from the Commissioner of Inland Revenue before disposing of books or records.

Notwithstanding the above, the Commissioner may make a re-assessment within nine years after the end of an income year, where a misrepresentation has been made or a person has failed to disclose any material information.

Topics of focus for tax authorities

The Barbados tax authorities have been focused on the efficient collection of taxes and voluntary compliance.