Business
Barbados: Tax changes announced in 2012-13 budget
Amendments to the two Acts will set the tax rate on the highest band for taxable income for income years 2012 and 2013. The changes will establish a corporate tax rate of:
2.5 percent on all profits and gains up to BB$ 10 million (US$ 5 million);
2 percent on all profits and gains exceeding BB$ 10 million (US$ 5million) but not exceeding BB$ 20 million (US$ 10 million);
1.5 percent on all profits and gains exceeding BB$ 20 million (US$ 10 million) but not exceeding BB$ 30 million (US$ 15 million); and,
0.5 percent on all profits and gains in excess of BB$ 30 million (US$ 15 million).
It is proposed that this lower band of 0.5 percent will be revised downward to 0.25 percent from the income year 2013-14. These changes are to apply to legislation for Societies with Restricted Liabilities as well as Offshore Banks. In addition, the range of services eligible for the Foreign Currency Earnings Credit will be expanded to include exploration, extraction and other mining, oil and gas activities, licensing and sub-licensing of intellectual property and shipping services.
Changes to land tax policy are proposed to increase the land tax rebate for pensioners to 60 percent from 50 percent. In addition, an amnesty is proposed to be launched for thirty days starting July 2, 2012.
