Tax Administration

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.

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. 

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.

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.

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

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.