Tax Administration - Barbados Revenue Authority

Tax Administration
Tax Tools
Tax Types

The Administration of the income tax system is carried out by the Barbados Revenue Authority and a staff of approximately 170 persons. The department issues return forms and advises taxpayers of the relevant statutory requirements for filing returns, P.A.Y.E deductions, non residents’ tax deductions, self assessment and paying and prepaying tax. Penalties and interest are imposed where returns are filed late and where balances of taxes due are paid late, or remain unpaid.

Losses

Losses may be carried forward for 7 years to offset any business profits derived in an income year by both individuals and corporations. Domestic corporations having losses within a group of companies may surrender current trading losses to a profit-making member of the group.

Notice of Assessment

Notices of Assessment are issued after returns in respect of an income year (i.e calendar year for individuals, fiscal year for corporations) are filed and assessed. Taxpayers, who dispute their assessments may object online via the TAMIS website. The assessments to which objections are made are reviewed and "Notices of Re-assessment" or "Notices of Confirmation" are forwarded to the taxpayer.

Rate of Tax

There are different rates of tax for the various tax types we administer.

Value Added Tax

Income Tax

Land Tax

See more information on these rates in the Frequently Asked Questions section of this site.

Reverse Tax Credit

From income year 2018 onward, employed individuals who earn less than $25,000 per annum enjoy the benefit of a Reverse Tax Credit (RTC) grant of BDS $1300. It must be filed within 2 years. For example, a 2019 RTC must be filed by December 31, 2021.

Self-Assessment System

A self-assessment system, patterned on the Canadian tax system, was introduced in 1968 when the British model was revamped and the 1968-51 Income Tax Act, Cap 73 and the Income Tax Regulations, 1969 took effect.

Under this system resident individuals and companies are required to calculate their taxable income, tax liability and prepay meals and pay the tax due at specified times.

Over time various amendments have been made to the 1968-51 act, which is still in effect. Some of these amendments were incentive based, designed to encourage improvements in the island’s infrastructure, to promote investment, to facilitate growth in the agricultural, manufacturing, hospitality, service and insurance sectors, and to enhance opportunities for increased exports and foreign currency earnings.

Examples of some of the incentives which were granted to individuals over time as deductions and allowances within specified limits are as follows:

amounts spent on support of relatives
property repairs, mortgage interest
solar water heaters and water saving devices
life insurance policies and registered retirement plans
investments in private and public companies
savings in credit unions and purchase of mutual funds

Tax Reform

In 1992, Barbados, during a period of structural adjustment, embarked on a major tax reform programme and many of the allowances and deductions introduced earlier were no longer available to individuals. In the recent past, however, a few of them have gradually been reintroduced.