Barbados Tax Overview

The Barbados tax system at a glance

Barbados taxes individuals and companies under the Income Tax Act, administered by the Barbados Revenue Authority (BRA). The tax year follows the calendar year, the currency is the Barbados dollar (BBD), pegged at BBD 2 = USD 1.

• Tax year (income year) — Calendar year, 1 January to 31 December (Income Tax Act, Cap. 73)
• Currency — Barbados dollar (BBD), pegged at BBD 2.00 = USD 1.00 ((peg is administrative, not statutory in the Income Tax Act)) (Central Bank of Barbados Act)
• Tax authority — Barbados Revenue Authority (BRA) (Barbados Revenue Authority Act, 2014-1)
• Residence basis (individuals) — An individual resident and domiciled in Barbados is taxed on worldwide income; resident but non-domiciled individuals are taxed on Barbados-source income and on foreign income to the extent remitted/benefited in Barbados (Income Tax Act, Cap. 73)
• Residence basis (companies) — Companies resident in Barbados are taxed on worldwide income; non-resident companies are taxed only on Barbados-source income (Income Tax Act, Cap. 73)
• Headline personal income tax rates — 12.5% on income BBD 25,001-50,000; 28.5% on income above BBD 50,000 (first BBD 25,000 covered by personal allowance) % (Income Tax Act, Cap. 73)
• Headline corporate income tax rate — 9% general corporation tax rate % (Income Tax Act, Cap. 73)
• Does VAT exist? — Yes — Value Added Tax (VAT) at a standard rate of 17.5% % (Value Added Tax Act, Cap. 87)
• Personal income tax return deadline — 30 April following the income year (Income Tax Act, Cap. 73)
• Corporation tax return deadline — Generally within 3-6 months after fiscal year end; BRA set a 31 July 2025 filing deadline for income year 2024 returns ((deadlines are subject to BRA extension notices — confirm current year)) (Income Tax Act, Cap. 73)