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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