Barbados

Taxable period

The tax year for individuals is the calendar year.

Tax returns

All individuals who carry on business (whether or not assessable income has been derived during the income year) or earn assessable income in excess of BBD 25,000 (BBD 40,000 in the case of pensioners over age 60) are required to file a separate income tax return.

The return is due by the following 30 April.

Income tax returns can be filed online.

Payment of tax

Pay-as-you-earn (PAYE)

Income tax is normally withheld from salaries under the PAYE system, and interest is payable to the taxpayer on overdue tax refunds. Individuals earning more than 25% of their total assessable income from business or rent must pay three instalments, each representing 25% of the previous year’s income tax liability, on 15 June, 15 September, and 15 December. Other individuals must pay 50% of the income tax due on filing the income tax return on 30 April and the remainder on 30 September.

Penalties

The penalties and interest for failing to file an income tax return on time and pay the income tax due are as follows:

• Penalty for failing to file an income tax return by the due date: BBD 500 plus 5% of the tax assessed at the due date.
• Penalty for failing to pay income tax by the due date: 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.