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12.2.1. Main Rules

Effective from 1 September 2019, Barbados introduced thin-capitalization rules with a debt-equity ratio of 1.5 to 1. Pursuant to the rules, interest payable on debts due to non-resident related parties owning more than 10% of the paying company are deductible only if the total amount of the debt does not exceed 1.5 times the equity of the company. Any portion of interest exceeding the ratio is not deductible.