Friday, Feb 22, 2019

New corporate tax rates effective since January

New corporate tax rates effective since January
07 Feb
2019

The convergence of Barbados' new corporate tax rates officially became effective last month (January).

However, the Central Bank of Barbados says it is not anticipated to impact tax revenues collections significantly until financial year 2020 to 2021.

In a statement, the bank notes that this new tax environment creates the potential for increased foreign exchange inflows from the international business sector.

However, it adds that this could be partly offset by higher dividend outflows by foreign-owned corporates.

At the same time, the bank says it creates an opportunity for profitable locally based companies to invest and improve their competitive position against non-Barbadian firms.

The bank adds that it is still too early to determine whether these low rates will encourage companies' resident outside Barbados to re-domicile here, to take advantage of the low rates.

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