Barbados - Other taxes and levies

Barbados - Other taxes and levies

Taxation of international executives.

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Social security tax

Are there social security/social insurance taxes in your country? If so, what are the rates for employers and employees?

The rates of the national insurance contributions for employees are 10.10 percent and for employers 11.25 percent, up to the maximum insurable earnings of BBD4,360 per month from income in the year 2014.

Type of insurance Paid by employer Paid by employee Total
National Insurance 6.75% 6.75% 13.50%
Non Contributory 2.00% 2.00% 4.00%
Employment Injury 0.75% 0.00% 0.75%
Unemployment 0.75% 0.75% 1.50%
Severance 0.50% 0.00% 0.50%
Training Levy 0.50% 0.50% 1.00%
Catastrophe Fund 0.00% 0.10% 0.10%
Total 11.25% 10.10% 21.35%

Pension Plan

Not applicable.

Employment insurance

Not applicable.

Gift, wealth, estate, and/or inheritance tax

Are there any gift, wealth, estate, and/or inheritance taxes in your country?

None.

Real estate tax

Are there real estate taxes in your country?

Land tax is levied on the owner of property on the value determined by the Town and Country Planning Department at the Ministry of Finance.

Sales/VAT tax

Are there sales and/or value-added taxes in your country?

Value-added tax is generally levied at 17.5 percent. However, with respect to the supply of accommodation at hotels, guest houses, and similar places there is a concessionary rate of 7.5 percent. Certain supplies are zerorated and exempt supplies are not subject to VAT. 

Unemployment tax

Are there unemployment taxes in your country?

None.

Other taxes

Are there additional taxes in your country that may be relevant to the general assignee? For example, customs tax, excise tax, stamp tax, and so on.

Expatriates should consider the applicability of customs duties and/or excise taxes which may apply to items imported to Barbados (such as automobiles). 

 

Consolidation Tax

Consolidation tax is imposed on the gross income from all sources of individuals with gross income exceeding BBD50,000 in any income year. Consolidation tax came into effect on 1 September, 2013 and is expected to be eliminated by March, 2016. It is calculated on an individual’s gross income at the following rates:

Gross
Income
 
Tax
rate on income in bracket
From BBD To BBD BBD
50,000 75,000 0.5%
75,001 100,000 1.0%
100,001 200,000 2.0%
200,001 Over 3.0%

Employers are required to deduct, withhold and remit consolidation tax on a similar basis to income tax. The relevant amount must be remitted to the Revenue Commissioner no later than the 15 of the month following the month in which the deduction was made as a prepayment of consolidation tax of the individual. 

Consolidation tax is applied to expatriate employees eligible for exemptions under special enactment on their gross income less exemptions.

 

 

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