The Barbados Ministry of International Business and Industry has issued a release announcing that Barbados is now compliant with the requirements of BEPS Action 5 (Harmful Tax Practices) and is no longer under threat of a negative listing by the OECD. The compliance has been achieved through legislative changes enacted by the Parliament of Barbados in December 2018, including the convergence of international and domestic tax rates so that all companies, except insurance companies, are subject to regressive tax rates as follows from the 2019 income year:
For insurance companies the rates are as follows from 2019:
Certain transition rules also apply. For qualified general insurance companies as of 17 October 2017 that were entitled to apply for the foreign currency allowance, a 2% rate on taxable income applies from the 2019 income year up to 30 June 2021 and for qualified life insurance companies meeting those conditions, the rate is 0.35% up to 30 June 2021.
Other changes from 2019 include:
Click the following link for the text of the legislation providing for the changes.
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