Tax In Barbados

A Contractor's Guide to Taxes : 

One of the most consistently challenging aspects of contracting in Barbados is complying with the country’s tax system. As well as paying tax in Barbados, you might also still be eligible to pay some tax in your home country, and understanding the legislation behind this can be a challenge.

How do I calculate my taxable income: 

If you’re working in Barbados under a permanent contract, many employers will handle your tax under the PAYE (pay-as-you-earn) system. This means that they calculate and process your taxes in Barbados for you and then send you a net wage. Your income tax, public health insurance, social security and other deductions will all be covered by this payment. This is the easiest way to handle your income tax in Barbados, but contractors may not be offered this service because of their short stay with each employer.

Anybody who can’t pay their tax in Barbados through PAYE is left with the prospect doing everything themselves.

Do you know much about Barbadian Tax Law? Does Barbados have a tax treaty with your home country? You will need to find out or find someone who can help! Income tax in Barbados can range from 16 to 33.5 percent, and you need to be sure you are placed in the correct tax brackets.

Tax Calculator: 

If you are a contractor and want a calculation on your tax and net retention in Barbados, we can supply it to you free of charge.

Using an Umbrella Company for Income Tax : 

Contractors in Barbados are faced with masses of paperwork and numerous wasted hours filing a tax return unless they find an alternative option. A Barbadian umbrella company can act as your employer during your stay in the country whilst still allowing you the freedom of a contractor. The only difference is that you submit your timesheets to them; they’ll calculate and pay your taxes as you earn, and then you receive a net wage (as well as documentation for your records).

The companies are experts in Barbadian taxation, and they’ll ensure that you keep the largest proportion of your earnings whilst complying with local laws. They can deal with any issues with the Barbadian tax office or tax department directly including processing your tax refund if you are eligible.

How We Can Help You with Tax: 

We work with numerous umbrella companies in Barbados, many of whom are experts in tax and immigration laws. If you have any questions about tax in Barbados, we’ll get the answers from them directly so you can rest assured you’ll be getting accurate information. We have comprehensive knowledge of the different services they provide, and can help you find the right company to handle your income tax. We help oil and gas workers, software developers, IT project managers, testers, business analysts and telecommunications contractors get tax efficient payments and sponsorship for their Barbadian work permit.

Our advice is 100 percent free, and comes with no obligations. You will be paying taxes in Barbados but without the overhead of directly dealing with the Barbadian tax authorities. Get in touch with us today for some reliable advice on tax in Barbados!

When Do You Need to Lodge Your Tax Return?: 
30 April (of the year following the income tax year)
Tax Filing Deadline : 
30 April (of the year following the income tax year)
Can you file it online? : 
Yes, https://etax.bra.gov.bb/eTaxIrd/
Currency: 
Barbadian/Bajan Dollar (BBD)
Tax-free Threshold in: 
None
Grossed Income: 
0 - 35,000
Tax Rate: 
16%
Grossed Income: 
>35,000
Tax Rate: 
33.5%
How long does it take to set up: 
15 days
How much does it cost: 
BBD2,310
Is it easy? : 
Starting a Business Rank: 99/190 (Source: World Bank)
How to File Taxes in: 

Online

Step 1: Register

Register for a username and password to access the Barbados Revenue Authority’s online services here.

You will be required to provide your National Registration Number (NRN) and personal details such as your full name and date of birth. A NRN is issued to every citizen of Barbados by the Electoral Office. Non-residents with a working permit are issued a temporary TIN (which is equivalent to an NRN) by the Barbados Revenue Authority.

Step 2: File Taxes

Log in to the Electronic Tax Administration portal here and follow the prompts to complete your tax return.

Notes: 

Personal Allowances

The following personal allowances are granted to tax residents.

Personal Allowance

$25,000 (or $40,000 for taxpayers who are 60 years or over and in receipt of a pension)

Spouse Allowance

$3,000 (if the taxpayer’s spouse has no income or investment income of $800 or less, and habitually lives with the taxpayer)

Child Allowance

$1000 per child (no more than 2 children)

Does the 183 day rule apply in: 

Yes

When do you become a tax resident in: 

You become a tax resident in Barbados when:

  • You spend 183 days or more in Barbados in an income (calendar year); or
  • You are considered ordinarily resident in Barbados. You become ordinarily resident in Barbados when (i) you have a permanent home in Barbados and (ii) give notice to the Revenue Commission that you intend to reside in Barbados for at least 2 consecutive income years.
Am I taxed on my global income in: 

Residents are taxed on their global income. Non-residents are taxed on their Barbados-source income only.

Client comment

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