Corporate - Taxes on corporate income

Last reviewed - 14 February 2023

Companies resident in Barbados are taxed on income earned from all sources, whether generated within or outside of Barbados, less expenses incurred for the purpose of producing assessable income in a fiscal period not to exceed 53 weeks. Non-resident companies are generally only taxed on income derived from sources and operations conducted within Barbados.

Corporate income tax (CIT) rates

The following rates apply to taxes on corporate income:

Taxable income bracket / Entity CIT rate (%)
Taxable income up to 1 million Barbados dollars (BBD) 5.5
Taxable income exceeding BBD 1 million but not exceeding BBD 20 million 3.0
Taxable income exceeding BBD 20 million but not exceeding BBD 30 million 2.5
Taxable income exceeding BBD 30 million 1.0
Class 1 insurance companies  0
Class 2 and 3 insurance companies 2

Pandemic contribution levy

The pandemic contribution levy is applied on the corporate profits of companies operating in telecommunications, life and general insurance, commercial banking, and majors engaging in the sale of fuel.  The levy rate of 15% is applied where the relevant companies earned net income of BBD 5 million or more in fiscal year 2020 and/or 2021. Payment of the levy commenced on 1 July 2022 and expires on 31 March 2023.