Canadian multinationals could be affected by Barbados’ major international tax changes
Canadian multinationals who operate in Barbados will be interested in significant tax changes the country recently announced. Barbados says it will dismantle its current international corporate tax regime (subject to certain grandfathering provisions) and converge its international and domestic tax rates. This tax rate convergence will mean that as of January 1, 2019, all corporate entities in Barbados (both those that carry on domestic business as well as international business) will be subject to the same income tax rate on a sliding scale from 5.5% to 1% depending on the level of taxable income (see tax rate charts below). These changes are largely in response to Barbados' commitment to the OECD to amend or abolish certain legislation which treated domestic and international taxpayers differently.
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Information is current to December 04, 2018. The information contained in this publication is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavour to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act upon such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's National Tax Centre at 416.777.8500