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8.1.2. Other Taxes

The following table provides an overview of other taxes that may be imposed on a company doing business in the country.

Tax Type Rate(s) Notes
Capital Duty Nil There is no capital duty in Barbados
Payroll Tax Nil There is no payroll tax separately due by companies on their total payroll expenditure. Employers are required to withhold income tax and social security premiums on behalf of their employees under the PAYE system.
Social Security Employer Contribution 12.75% Employers contribute at the rate of 12.75% towards National Insurance and Social Security which includes Health Services Contribution at the rate of 1.5%. Contributions are determined as a percentage of insurable earnings up to a maximum of insurable earnings of BBD 4,880 per month or BBD 1,126 per week, effective 1 January 2020. Employers must remit National Insurance contributions by the 15th day of the following month.
Social Security Employee Contribution 11.10% Employees are required to register with the Director of National Insurance. The private sector contribution rate for employees between the age of 16 and 66½ years is 11.10% which includes Health Services Contribution at the rate of 1%
Property Tax 0.1% to 1% Building and landowners are liable to land tax on the value of their property. The tax rates range from 0.1% to 1%. The rate for improved non-residential land (commercial, industrial, and other) is increased from 0.75% to 1% effective from 1 January 2019. The land tax rates for the tax year 2019-20 for vacant land are 0.8% for land measuring up to 4,000 sq. ft.; 0.9% for land measuring over 4,000 sq. ft. and valued up to BBD 450,000 and 1% for land measuring over 4,000 sq. ft. and valued over BBD 450,000. Land tax must be paid based on the issue date on the land tax bill. Effective 1 January 2019, tax paid before 31 August 2019 is entitled to a 5% discount (previously, tax paid within 30 days was entitled to a 10% discount).
Transfer Tax 2.50% Transfer tax is imposed at a rate of 2.5% on the value of real property in excess of BBD 150,000 and on the value of shares or debentures in excess of BBD 50,000. The transfer of shares under the reorganization of a group of companies where there is no change in beneficial owner is exempt from transfer tax.
Stamp Duty Varies Stamp duty is levied on certain documents at varying rates. Stamp duty is imposed at a rate of BBD 10 for every BBD 1,000 on the transfer of real or personal property,, leases and shares in private companies, subject to certain exemptions.
Excise Taxes Varies Five categories of goods (both locally manufactured, as well as imported) are subject to excise taxes. These are sweetened beverages motor vehicles, spirituous beverages, tobacco products, and petroleum products. Most excisable goods are subject to the tax at a specific rate, with the exception of motor vehicles, which are subject to ad valorem rates.
Customs Duty Varies Customs duty is levied on a wide range of imported goods at rates specified in Part 1 of the First Schedule of the Customs Act. Barbados’ Customs Tariff is based on the Common External Tariff of the Caribbean Common Market (CARICOM) with special derogations for certain items, e.g. spirituous beverages. Customs duty is calculated on either an ad valorem basis or at specific quantitative rates. The ad valorem rates for most items vary between 0% and 20%, but certain goods regarded as luxury items are subject to higher rates (e.g. jewellery 60%). In addition, a select group of items that are produced within Barbados and CARICOM (including some agricultural products) are subject to a duty rate of 60% when imported from outside the region.
Other: Petroleum Winning Operations 50% Taxpayers licensed under the Petroleum Winning Operations Act are required to pay tax at the rate of 50% on the chargeable profits. Chargeable profits mean income earned from sale of petroleum and related operations after reducing allowable deductions. Taxpayers covered under the Petroleum Winning Operations Act are exempt from income tax and land tax, subject to certain conditions.
Other: Offshore Petroleum Income Tax Varies Taxpayers engaged in offshore activities associated with the search for, and recovery of petroleum and related matters are required to pay offshore petroleum income tax at the rate of 25% on the taxable income. Different rates apply if the licensee is granted a production license based on a discovery made under an exploration license or pursuant to a call for tenders or negotiations. Taxpayers covered under the Offshore Petroleum Tax Law are exempt from income tax and customs duty and can avail VAT relief, subject to certain conditions.
Other: Land development duty > 50% Where a person disposes of property situated in a specially designated development area within 15 years of the date specified by statute, duty may be charged at a rate of up to 50% on the excess of the value of the consideration over the improved value at the specified base date, plus certain other expenses and an amount representing capital appreciation of the property.
Other: General insurance premium tax 4.0-4.75% In addition to the corporate income tax computed on the taxable profits of general insurance companies, a general insurance premium tax is levied on gross direct premium income at a rate of 4.75% in respect of property insurance business and 4% for other general insurance business.
Other: Life insurance premium tax 3-6% In addition to the corporate income tax computed on the gross investment income of life insurance companies, a life insurance premium tax is levied on gross direct premium income earned by resident and foreign life insurance companies. Resident New business for the income year: 6% Renewal business: 3% Non-resident New business for the income year: 6% Renewal business: 5%
Other: Product Development Levy 3.75% Effective 1 April 2019, a product development levy applies at the rate of 3.75% to all direct tourism services.
Other: Shared Economy Levy and Room Rate Levy 10% / Varies Effective 1 August 2018, a shared economy levy applies at the rate of 10% to the cost of tourist accommodation. Effective 1 July 2018, the room rate levy applies at various rates to tourist accommodation.
National Social Responsibility Levy 10% (effective 1 July 2017) Applicable on the customs value of all imports and domestic output, other than on goods for use in the manufacturing, agriculture, and tourism sectors
Bank Tax on Assets 0.35% per annum The tax is charged on the average domestic assets of a bank. The tax is pro-rated and payable every three months
Foreign Exchange Fee (FXF) 2% A foreign exchange fee at the rate of 2% is charged on the sale of foreign currencies which include wire transfers, credit card transactions, and over-the-counter transactions subject to a maximum of BBD 100,000 per transaction.