Multinational companies to pay higher corporation taxes

More than 180 multinational companies operating in Barbados will be required to pay higher corporation taxes.

This, is as the country moves to comply with the imposition of a global minimum tax rate of 15%.

Minister of Energy and Business, Senator Lisa Cummins, led off Debate on the Corporation Top-Up Tax Bill in the Upper House.

She explained the additional tax would only apply to businesses earning the equivalent of over 1.59 billion Barbados dollars annually.

Businesses that do not meet the threshold will continue to pay the 9% tax rate announced last year, while registered small businesses will pay 5%.

Senator Cummins says last year the government collected 470 million dollars in corporation tax, 400 million of which came from international businesses.

She has however cautioned against the expectation the higher tax rate will automatically mean a boost in revenue, as companies will decide whether to continue operations in Barbados.

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