Barbados

Corporate - Taxes on corporate income

Last reviewed - 16 December 2019

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 BBD 1,000,000 5.5
Taxable income exceeding BBD 1,000,000 but not exceeding BBD 20,000,000 3.0
Taxable income exceeding BBD 20,000,000 but not exceeding BBD 30,000,000 2.5
Taxable income exceeding BBD 30,000,000 1.0
International business companies, international banks, and international societies with restricted liability that have elected and been approved to be grandfathered (1) 1.0 to 2.5
Class 1 insurance companies  0
Class 2 and 3 insurance companies 2
Exempt insurance companies 0
Qualifying insurance companies (2) 0.35

Notes

  1. These regimes were closed to new entrants from 31 December 2018.
  2. This rate applies to insurance companies that were classified as qualifying insurance companies licensed under the Insurance Act, Cap. 310 and carrying on life insurance business before 17 October 2017.