Income Tax

Taxpayers are not required to submit original documents when filing. Since original documents may be subsequently requested, taxpayers are required to retain all original documents. 

1. Check to see if your return has been assessed or not already. You can check by logging into ETAX and looking at your return – if there is an (A) next to the year, it has already been assessed.

If the return has not been assessed:

1. Log in to ETAX
2. Go to “My Panel”
3. Go to “My Obligations” on the right of the screen
4. Click “More”
5. Select filed returns
6. Select “Replace”
7. Enter the corrected information
8. Save and submit return
9. Click “My Panel” to ensure that the replace return was submitted by the word “replaced” next to the return.

If the return has already been assessed:

1. Log in to ETAX
2. Go to “My Panel”
3. Go to “My Obligations” on the right of the screen
4. Click “More”
5. Select filed returns
6. Select “Object”
7. Enter the corrected information
8. Save and submit return
9. Click “My Panel” to ensure that the replace return was submitted by the word “O” next to the return. Once the objection has been assessed, you will see “OA” on the screen

Deductions for rent paid were allowed up to Income year 2014, however with effect from Income year 2015 rental allowances are no longer applicable.

NIS contributions paid by an employee or self employed person are not tax deductible.

An employer may claim as a deduction that portion of National Insurance Contributions which that employer paid on behalf of an employee.

No. An individual cannot claim a Spousal Allowance, if their spouse has filed a Reverse Tax Credit Return.

In a case where your income has been uploaded incorrectly your employer is responsible for submitting the correct changes to the department for approval.

• To dispute an assessment, you may object on-line (via the E-Tax website) within twenty-one days of receiving the Notice of Assessment, stating the precise ground (s) of your objection.

• If you are not satisfied by the decision of the Barbados Revenue Authority, you can appeal to the Appeals Tribunal or seek further recourse in the High Court.

1. Go to https://etax.bra.gov.bb
2. Log in
3. On the home page, in the top right corner, click “My Obligations” and select the return for the desired year
4. Click “File now”
5. Enter the necessary information in the return
6. Click “Check”
7. Click “Submit”

Every employer who has persons earning more than $481 per week or $2,083 per month is required to register as an employer with the Barbados Revenue Authority. He/she is then issued with all the required forms.

1. The first form we will focus on is the Employee Declaration Form, A47: 001. All employees must complete this form. It allows the employer to determine the relevant tax Code under which the employee will be taxed. Each employed person starts with a basic allowance of $25,000 and this can increase depending on the amount of the allowances that person has claimed.
2. A person claiming $25,000 would have a tax code of 250W or 250M depending on whether that person was paid weekly or monthly. The code enables the employer to deduct the correct amount of tax from each employee.
3. Another form issued to the employer is the PAYE Tax Deduction Remittance Form, A47:004. After taxes have been deducted from all persons liable to tax the employer is obligated to pay all sums over to the Commissioner on or before the 15th of the month following the month in which it was deducted.
4. This form, A47.004, (available online) is used to remit all sums to the Barbados Revenue Authority. Employers should be sure to include their Account Numbers. Payments may be posted, hand delivered or placed in our 24 hr. mailbox on the north side of the Ground Floor, Treasury Building.
5. The Tax Tables Booklet contains a set of instructions to each employer. These instructions, !f closely followed, will greatly assist the users in deducting the correct amount of tax. They will also advise the employer what amounts are taxable, what amount must be deducted for the month from the employee and how to account for the amounts deducted.
6. The main function of the Tax Tables is to show the employer how much PAYE to deduct from each person's pay package. This book contains over 300 pages with tables that make it as simple as possible for its users. The P.A.Y.E. section is staffed by officers who are responsible for the rendering of any assistance needed.

Persons who are employed with more than one employer must complete and file one Employee Declaration Form only with the employer of his or her choice. The wages or salary earned from the other employer(s) is then to be taxed under table X. This means that no allowances are taken into account in the deduction of P.A.Y.E. In other words, the total amount earned with the second employer is taxed at between 20% to 38%.

If an employee feels too much or too little tax is being deducted from his/her wages or salary that person may in writing give notice of complaint, stating the grounds of his complaint, to the Commissioner.

If after the Commissioner has investigated the complaint and found that too much tax has been deducted from the emoluments of that person, she shall as soon as practicable cause the excess to be refunded to that person.

1. Send an email to filing@bra.gov.bb with the subject line “Agree to Registration to File Taxes”. In the body of the email, list your Reference Number (at the top of your letter) and state that you consent to be registered.             
2. The BRA will handle your registration and send you notice to file when the registration is complete.

Registering in TAMIS

1. Go to --->REGISTER HERE
2.  Select tutorial for “How to Register” and follow the instructions listed

Yes. You are still required to file a return. This loss may then be carried forward to be set off against future profits.

Steps for UPDATING YOUR REGISTRY INFORMATION

Login to eTax

In Main Menu click Update taxpayer information.              

Click “Continue”              

On the Welcome Page click “Next” at the bottom of the page.

One the Identification page make any recent changes “ save” at the bottom of the page

Follow the direction in the “Pop-up” window

Once you have saved your changes you will be redirected to the main Menu

Click the “My Panel” menu tab on the left

Then click “file now” to file your tax return for 201612

No. You are only required to file one tax return for the relevant year, if the return was not yet assessed, you may update your information by filing a replacement return. If the return was already assessed, then you may file an objection.

Yes. The income of a person is his income from all sources, business, property, offices and employment, whether within or outside of Barbados. This includes bonuses, commissions, plus the value of all other benefits, whether in money or otherwise, including quarters, board or residence, received or enjoyed in that income year in respect of that office or employment. Therefore you must declare income from all sources.

For Individuals/Employees - with income of less than 25% from business, half of the tax due is payable on or before the 30th April and the balance on or before the 30th September. Failure to pay will attract penalties and interest.

Individuals with income from business/property. (Self-employed Persons) - partners and individuals with more than 25% of income from business, prepayment must be made on or before June 15th, September 15th and December 15th with the balance payable on or before 30th April. Prepayments are calculated based on the previous year's tax payable or may be determined by the Barbados Revenue Authority on request.

No. An individual whose spouse has exempt income is not entitled to a spousal allowance.

Yes, car allowances/benefits are taxable.

No. The 12.5% tax deduction is a final tax, which fully satisfies the tax liability on the interest. Hence you are not required to include it in your assessable income.

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.

You will be required to wait until the return you filed is assessed after which you may file an objection.

You may object on-line (via the E-Tax website) within twenty-one days of receiving the Notice of Assessment, stating the precise ground(s) of your objection.

PAYE is a withholding tax which was introduced in Barbados in 1957 and simply means 'Pay As You Earn’. Currently every employee who earns a wage or salary of more than $481 per week or $2083 per month is liable to PAYE.

The P.A.Y.E. system allows the employee the privilege of paying his or her income taxes for an income year over a longer period than having to face paying a large tax bill when the return is filed. It is the best way for employed persons to meet their tax obligations without too much undue hardship as this system simply allows the employee the luxury of paying his or her taxes in fifty-two (weekly) or twelve (monthly) or manageable instalments.

Late Filing Penalty of:

• $500.00 effective from income year 2011. 
• $100.00 prior to income year 2011
• 5% penalty is applicable to the unpaid balance due by by April 30.

 Late Payment Penalty of:

• 5% penalty is applicable to the unpaid balance due by by April 30.

Interest of:

• 1% per month is applied to outstanding tax and penalty.

A person may claim a spouse allowance when his or her spouse has NO income from any source or has investment income only of $800 or less.

Sickness, Maternity, Pensions and Unemployment benefits are taxable.

1. All individuals whose annual employment income exceeds $25,000.

2. All self-employed persons.

3. Pensioners 60 years and older whose annual income exceeds $40,000.

4. Pensioners under 60 years whose annual income exceeds $25,000.

5. All individuals who are in receipt of income from a business (rental or otherwise).

Yes. Our Customer Care Division offers year round assistance to employees in the completion of their tax return forms. However, this assistance is not offered to self employed persons whose income has to be determined.