Barbados has proposed several changes to its taxation system within its 2016 budget, which was delivered on Tuesday, August 16, 2016.
Among other changes, the budget announced an extension of the bank asset tax at an increased rate.
Banking - Tax on assets
Barbados announced it will continue the bank asset tax and increase the rate from 0.2% to 0.35%, effective August 16, 2016, with the assessment for the asset starting from April 1, 2016. The bank asset tax was reintroduced as a temporary measure in Barbados' 2013 budget.
Between September 15, 2016 and February 15, 2017, Barbados will offer a tax amnesty across the tax categories of VAT, income tax and land tax. During this period there will be a waiver of all penalties, as well as interest and other charges, incurred up to September 14, 2016, provided the taxpayer pays the outstanding principal on or before February 15, 2017.
Creation of duty-free zones
Barbados proposes to introduce administrative and legal arrangements for the creation of duty-free shopping zones in Barbados, available to Barbadians and visitors making purchases in foreign currency.
For more information, see KPMG Barbados' TaxNewsFlash, "Barbados Budget Highlights", or contact your KPMG adviser.
Information is current to August 23, 2016. The information contained in this publication is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavour to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act upon such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's National Tax Centre at 416.777.8500