Barbados

Individual - Deductions

Last reviewed - 29 January 2021

Employment expenses

Employees may deduct only unreimbursed expenses incurred for travel and entertainment in the performance of their duties.

Investment of bonus in shares of employing company

An employee may claim a deduction for an annual bonus that is converted into shares of their employing company, up to the lower of 75% of their annual bonus or BBD 7,500. The shares must be held for five years; otherwise, the deduction previously claimed will be taxable in the year of disposition.

Subscriptions to a registered trade union/statutory association

A deduction is allowed for subscriptions to a registered trade union/statutory association, up to BBD 240 per annum.

Personal deductions

Non-residents are precluded from claiming any deductions in calculating taxable income.

Charitable contributions

Deductions are allowed for donations as follows:

Charity Less than BBD 1 million  More than BBD 1 million 
Settlement to a registered charity that is not an exempt charity Deduction of the amount of the payment made or the market value of the property transferred not exceeding 10% of assessable income Deduction of the amount of the payment made or the market value of the property transferred not exceeding 50% of assessable income; deduction taken over a five-year period
Settlement to an exempt charity Deduction of the total amount of the payment made or the market value of the property transferred Deduction of the total amount of the payment made or the market value of the property transferred

Medical expenses

A deduction is allowed for annual medical examinations for persons 40 years of age and over, up to BBD 750 per annum.

Renewable energy

A deduction of 150% of expenditure on energy audits or electrical retrofitting to produce electricity from sources other than fossil fuels is allowed, not exceeding BBD 10,000 per annum for each year over a five-year period.

A deduction is allowed for amounts incurred in respect of training in renewable energy and energy efficient systems or in respect of a minor or a student under 25 years of age who is unemployed and pursuing a course in renewable energy or energy efficient systems. The training must be provided by an educational or vocational institution that is approved by the Barbados Accreditation Council.

Personal allowances

Residents of Barbados can claim the following allowances:

Allowance BBD
Individuals 25,000
Individuals over the age of 60 and in receipt of a pension 40,000
Individuals whose spouse had no income and was either fully supported or lived with the spouse 3,000
Children (maximum of two) (removed from 1 July 2019) 000/child

Non-residents are precluded from claiming any allowances in calculating taxable income.

Business deductions

An individual carrying on a trade, business, profession, or vocation can generally deduct expenses incurred for the purpose of producing assessable income of the individual.

Depreciation of a motor vehicle is not deductible.

Losses

An individual is unable to offset losses incurred from a business or property against income earned from an office or employment in an income year.