Corporate Tax Reform

Corporate Tax Reform

Dear Stakeholders

                                            Public Consultation -Barbados Corporate Tax Reform 2024

The Government of Barbados is inviting all interested parties to provide written comments on the draft legislation implementing the 2024 Corporation Tax Reform

and in particular on the aspects identified below:

I. Draft Bill Income Tax Act Amendment 2023

IIDraft Bill -Top Up Tax

As announced by the Prime Minister and Minister of Finance, the Honourable Mia Amor Mottley M.P. S.C. to the House of Assembly on November 72023the Government of Barbados is undertaking Corporate Tax Reform. The Reform aims to modernise the Corporate Income Tax and to align the Corporate Tax Framework with the OECD Inclusive Framework GloBE Rules.

    The Government of Barbados is determined to ensure a conducive business environment for domestic and global businesses, which includes full compliance with international standards, appropriate levels of taxation and compatible tax incentives to foster growth and employment in the country.

    Following the Ministerial Statement of November 7, 2023 two draft bills have been prepared. Aligned with international best practice, these are released for public comment until January 52024. The Government of Barbados will carefully review the comments and draw on them as appropriate to improve the legislation which is expected to be adopted by the end of January, 2024.

    The objective of the tax reform is to modernise the corporate tax systemto ensure that it is conducive to doing business in Barbados while ensuring full compliance with international tax standards. In particular, it provides for the following:

• Companies operating in Barbados will be subject to a new corporate income tax rate of 9%Small business companies (below BBD$2M revenue) will remain subject to a lower rate of 5.5% and insurance companies will continue to be taxed at 0% or 2% depending on their classification.

• A Qualified Minimum Top-Up Tax is introduced to ensure that companies in­ scope ofthe new 15% Global Minimum Tax benefit from a qualified regime and a safe harbour.

• As a transitionexisting rates (the 5.5% to 1% sliding scale) will apply to companies not subject to an Income Inclusion Rule in their headquarter country and to international shipping activities which are exempt from the Global Minimum TaxFurther consultation will take place on the future tax regime of these activities and therefore input on the future taxation regimes of international shipping and airline activities is also welcome.

• Tax credits: In order to foster economic activity and employment in Barbadosand in addition to existing allowancesnew tax credits are proposedThey are designed to be compatible with the GloBE Rules (they will be qualified refundable tax credits). The Draft Legislation introduces(i) a Jobs Creditbetween 25% and 100% of eligible payroll expenses and (ii) a Research Development Creditof 50% of eligible expensesThe quantum of the Jobs Credit is lower than announced in the Ministerial Statement.

• Payment schedule: Barbados is also moving towards a monthly paymenocorporate income tax for some businesses from January 12024.

    In addition to the tax reformnew measures will be announced in March 2024 to promote investment in Barbadosparticularly in the field of sustainable investmentsincluding in the blue and green economy, related to financing the fight against the climate crisis and new risk assurances.    
     The Government of Barbados looks forward to receiving your comments and to improving and ensuring that the legislation is fit for purpose. Technical drafting comments as well policy comments are welcome on all aspects of the draft bills to the extent they serve the policy purpose of improving doing business in Barbadosattracting more activities and jobs in full compliance with international tax standards.
     We are inviting comments on the draft, which should be provided on or before January 5, 2024 in the comments section below or for persons submitting documents please email to 


Public Consultation - Corporation Top-up Tax Bill 2023 DISCUSSION DRAFT(2023-12-15)
Public Consultation – Income Tax (Amendment) (No.) Bill 2023 Discussion Draft (2023-12-15)
We invite your comments on the draft amendment to the Corporate Tax. Please fill out the form below, and submit. We appreciate your feedback.
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