Compensatory Income Credit (CIC) – Increase in Income Limit
The Barbados Revenue Authority (BRA) advises that effective Income Year 2025, the income limit for individuals eligible for the Compensatory Income Credit (CIC) has been increased from $35,000 to $50,000.
This measure was announced under the Budgetary Proposals 2026 by Ryan Straughn, Minister of Finance.
📈 What This Means for You
- Individuals earning $25,001 up to $50,000 may now qualify for the CIC
- The CIC provides a tax credit of up to $3,125 (Income Year 2025)
- From Income Year 2026, the maximum credit will be $2,875 due to reduced tax rates
- Eligible individuals can receive a refund of taxes paid when filing their Personal Income Tax (PIT) return
📌 Key Reminders
- The CIC applies to resident individuals only
- You must file your PIT return to receive the credit
- The update applies to Income Year 2025 and onwards
📥 Download Full Policy Note
For full details, eligibility conditions, examples, and filing guidance, download the official policy note below: