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4.3. Branch Profit (Deemed Remittance) Tax

Profits of a non-resident company are deemed to be remitted to the foreign head office and subject to a branch profit remittance tax at the rate of 5% (reduced from 10% effective from 1 January 2019). The branch tax does not apply to after-tax income re-invested in Barbados otherwise than in replacement of fixed assets. Effective 1 April 2019, branch profits paid out of income earned outside of Barbados are not subject to branch profits tax.