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Barbados Income Tax is levied on the income of persons resident or non-resident in Barbados. There is no tax on capital. The system of taxation is based on self-assessment.

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.