Tax
Income Tax Act with converged corporate rates and VAT at 17.5 per cent
Income and corporation tax are charged under the Income Tax Act, Cap. 73, administered by the Barbados Revenue Authority. Since the 2019 convergence, corporate rates run on a sliding scale that applies to domestic and internationally focused companies alike, replacing the old offshore preferences. VAT under the Value Added Tax Act is charged at a standard rate of 17.5 per cent, with a higher rate for certain accommodation.
Key rules
- Jurisdiction — National; Barbados Revenue Authority, then the Revenue Appeals Tribunal
- Deadline — Corporate return: due by 15 June following the income year for most companies
- Deadline — Individual return: due by 30 April
- Deadline — VAT return: filed bi-monthly, within 21 days of the end of the period
Governing law
- Income Tax Act, Cap. 73
- Value Added Tax Act, Cap. 87
- Barbados Revenue Authority Act 2014
- Corporation Top-up Tax Act 2024
In practice
Barbados legislated a domestic top-up tax to align with the OECD global minimum tax for large multinational groups, which means the headline sliding-scale rate is no longer the end of the analysis for an in-scope group. Economic substance returns are a separate annual obligation and are enforced independently of the income tax filing.