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Barbados: Tax developments in response to COVID-19

General Information

This page offers an overview of tax developments being reported globally by KPMG member firms in response to the Novel Coronavirus (COVID-19).

The content will be updated on a regular basis. However, due to the fast-moving pace of change, it may not always reflect the most current developments in a given jurisdiction. Please refer to the date of accuracy and refer to the relevant links, under additional information, for original source information.

Date accurate as of: 22 July 2020

The government initiated a series of adjustments to Barbados' tax platform in 2018 and 2019 that resulted in a reduction in corporate tax rates from 5.5 per cent to 1 per cent, as follows (non insurance):

  • $0 - $1 million: 5.5%
  • $1- $20 million: 3%
  • $20 - $30 million: 2.5%
  • Over $30 million: 1%

The Barbados government has projected that the fall in economic activity will negatively affect the profit streams of corporations, the demand for properties and increased compliance issues. 

Consequently, corporation taxes and property taxes will likely be lower than were initially projected by between $19 million and $27.6 million, and between $8 million and $11.4 million, respectively. 

Filing/Payment Deadline Extension and Tax payment relief

  • The personal income tax filing and payment deadline was extended  from April 30 to May 29 and further extended to June 30, 2020.  
  • The corporate income tax filing and payment deadline for companies with a fiscal year-end between October 1 and December 31, 2019 has been extended from June 15 to June 30, 2020.
  • No payment relief measures have been put in place to date.