Barbados Corporate Income Tax

Corporation tax rates and base

Barbados moved to a 9% general corporation tax rate from 1 January 2024, with reduced rates for approved small businesses, shipping, insurance and qualifying IP income. A 15% Qualified Domestic Minimum Top-Up Tax applies to large in-scope MNE groups.

• General corporation tax rate — 9% % (Income Tax Act, Cap. 73)
• Approved small business rate — 5.5% % (Small Business Development Act / Income Tax Act, Cap. 73)
• International shipping companies — Tiered, 5.5% down to 1% % (Income Tax Act, Cap. 73)
• Insurance companies (Class 1, 2, 3) — Tiered, 0% to 2% depending on class % (Insurance Act / Income Tax Act, Cap. 73)
• Qualifying intellectual property income — 4.5% % (Income Tax Act, Cap. 73)
• Qualified Domestic Minimum Top-Up Tax (Pillar Two) — 15% top-up tax on in-scope resident members of MNE groups with consolidated revenue of EUR 750 million or more % (Corporation Top-up Tax Act, 2024-16)
• Tax base — Resident companies taxed on worldwide income; non-resident companies on Barbados-source income only (Income Tax Act, Cap. 73)
• WHT on dividends (resident recipients) — 0% to companies; 15% to individuals % (Income Tax Act, Cap. 73)
• WHT on dividends (non-resident recipients) — 0% / 5% (0% where paid out of non-Barbados-source income), before treaty relief % ((confirm domestic non-treaty rate)) (Income Tax Act, Cap. 73)
• WHT on interest — 15% to resident individuals (0% for pensioners aged 60+); 0% domestic rate to non-residents before treaty % (Income Tax Act, Cap. 73)
• WHT on royalties (non-residents) — 0% domestic rate before treaty relief % ((confirm — historically royalties to non-residents carried a domestic WHT; verify current rate)) (Income Tax Act, Cap. 73)
• Corporate income tax prepayments — From income year 2025, all companies (except approved small businesses) prepay monthly 1/12 of the tax payable on taxable income of the income year before the preceding year, due by the 15th of each month (Income Tax Act, Cap. 73)
• Corporation tax return deadline — Generally within 3-6 months of fiscal year end; BRA set 31 July 2025 for income year 2024 returns ((deadlines subject to BRA extension notices — confirm current year)) (Income Tax Act, Cap. 73)