IBX-Jakarta. Barbados will levy an increased corporate tax rate of nine percent for most corporations from January 2024.
Prime Minister Mia Amor Mottley has announced a suite of changes to the country’s corporate tax regime to be implanted in 2024.
The 9% corporate tax rate will not apply to insurance and shipping entities, and to businesses with revenue at or below BBD2million, which are registered under the Small Business Development Act.
Additionally, with effect from January 1, 2024, a Qualified Domestic Minimum Top-Up Tax (QDMTT) will be implemented. The QDMTT will top-up the Barbados effective corporation tax payable by an in-scope multinational enterprise to 15 percent. The top-up tax will not apply to in-scope multinational enterprises where the Ultimate Parent Entity is in a jurisdiction which has not implemented an Income Inclusion Rule (IIR) or where the Constituent Entities are not subject to an IIR or an Undertaxed Profits Rule.