Changes to Individual Income Tax Rates Effective Income Year 2015
The Barbados Revenue Authority wishes to advise you that effective Income Year 2015, the Individual Income Tax rates have been changed.
These changes follow the Financial Statement and Budgetary Proposals of June 15, 2015 by the Minister of Finance and Economic Affairs.
The two new 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.
Please also note that employers should adjust Pay-As-You-Earn (PAYE) payments with immediate effect.
You are reminded that individual taxpayers are allowed a personal allowance of $25,000 and as such, their taxable income is calculated above $25,000. However, persons in receipt of pension income and are over the age of 60 are entitled to a personal allowance of $40,000, with taxable income for those persons being calculated above $40,000. Taxable income is therefore calculated after the personal allowance is subtracted from the total income.
In addition, you are advised that the existing personal, child and spousal allowances remain in place.
You are asked to note that only the following Allowances and Deductions are being granted:
- Contributions to trade unions and statutory associations;
- National insurance contributions paid on behalf of an employee;
- Donations to charities including the church; and
- Energy audit retrofits.
Other special credits such as foreign currency earnings allowance and double taxation relief will also remain in keeping with Barbados’ Treaty arrangements.