Frequently Asked Questions

In this section you will find all the frequently asked questions about the facilities and services offered at the Barbados Revenue Authority.

What are the current Income Tax and Corporation Tax rates?

Income Tax

Effective Income Year 2015, the personal income tax rates are:

  • 16% of every complete dollar of taxable income up to and including $35,000; and
  • 33.5% of every complete dollar of taxable income above $35,000.

Also remember that individual taxpayers are allowed a personal allowance of $25,000, while persons in receipt of pension income and are over the age of 60 are entitled to a personal allowance of $40,000. 

*Note that Total Income - Personal Allowance = Taxable Income 

Corporation Tax

The Corporation Tax Rate is:

  1. 25% of taxable income in respect of Income Year 2006 and subsequent years.
  2. 15% with effect from Income Year 2007 for approved small businesses under the Small Business Development Act.
  3. 15% for a company that is engaged in the business of manufacturing.
  4. 15% for a company that is engaged in the construction and sale of houses priced under $ 150,000 (inclusive of land).
  5. 15% for qualifying business under the Special Development Areas Act, Cap. 318C.
  6. 5% - Life Insurance Companies.