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5.5. Source Rules with Respect to Income Derived by Non-Residents

Dividends

Dividends received from companies that are incorporated and registered in Barbados and from foreign companies authorized to operate in Barbados are deemed Barbadian sourced. Dividends received by a non-resident company from a Barbadian resident company, out of income earned from sources outside Barbados, are not subject to tax in Barbados.

Interest

Interest paid by Barbadian residents to non-residents is deemed Barbadian sourced.

Royalties

Royalty fees paid for the use of intellectual property in Barbados is deemed Barbadian sourced.

Rental Income

Rental income from property situated in Barbados is deemed Barbadian sourced.

Service Fees

Service fees paid to a non-resident are deemed Barbadian sourced if the services are furnished or used in Barbados.