David King & Co., Attorneys at Law
Suite 101, Lauriston Bldg
Lower Collymore Rock
St Michael, BARBADOS
ph: 1(246) 427 3174
fax: 1(246) 436 9541
daveking
The corporate income tax rates for RBCs (including former IBCs and ISRLs that were licensed on or after 17 October 2017 (other than IBCs/ISRLs that hold or exploit intellectual property, which are subject to special rules)) that apply as from the 2019 income year (corresponding to the company’s accounting year ending in 2019) are reduced from the former 30% rate, as follows:
Foreign Currency Permits for companies that earn 100% of their annual income in foreign currency including former IBC's and ISRLs
The following will be needed to apply for an FCP:
The new legislation does not define economic substance in the context of Barbados law, but the term generally is understood under international standards as relating to guidelines developed to prevent tax avoidance, under which a transaction is required to have a substantial purpose aside from taxation purposes to be considered valid. Provisions for the imposition of an economic substance test for companies carrying on business in Barbados became effective on 1 January 2019. The Director of International Business has not yet issued guidance or a practice direction regarding the application of the test.
A company engaged in relevant business activities must carry out its “core-income generating activities” (COGA) within Barbados to fulfill the economic substance test which is applicable to resident companies carrying on business in Barbados that are engaged in “relevant business activities,” which include the following:
David King & Co., Attorneys at Law
Suite 101, Lauriston Bldg
Lower Collymore Rock
St Michael, BARBADOS
ph: 1(246) 427 3174
fax: 1(246) 436 9541
daveking