Barbados’ Prime Minister, the Honorable Mia Amor Mottley S.C. M.P. has announced that Barbados has taken the decision to be an early adopter of the Organization of Economic Co-orporation and Development (“OECD”)’s Pillar 2 of the Base Erosion and Profit Shifting (“BEPS”) Initiative - “Global Anti-Base Erosion” (“GloBE”) Rules, which are designed to ensure that multinational entities pay a minimum level of tax on their global income.
Having dismantled its International Business Company (“IBC”) regime in 2018, converged its corporate tax rate down to a range of 5.5 to 1%, removed all but three tax allowances, and introduced economic substance rules in 2019 to meet OECD BEPS requirements, the country will once again see sweeping changes to its corporate tax landscape from the current/upcoming fiscal period 2024.
In what could be considered to be a display of its agility and an ability to be nimble, Barbados’ goal with every wave of change to its corporate regime is not just to be tax competitive but to be business competitive, on its way to becoming a global destination of excellence.
Download Tricor's "Barbados Tax Update 2023" to learn more.
For more information, please contact our team in Barbados: