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|
- These regimes were closed to new entrants from 31 December 2018.
- 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.