"Barbados is an island nation located in the Caribbean Sea and is known for its beautiful beaches and vibrant culture. The economy of Barbados is largely based on tourism, with the sector accounting for approximately 60% of the country’s GDP. The country also has a strong financial services sector, which contributes around 20% of GDP. Additionally, Barbados has a thriving manufacturing sector, which accounts for around 10% of GDP. The country also has a strong agricultural sector, which contributes around 5% of GDP.
The economy of Barbados has been growing steadily in recent years, with GDP growth averaging around 2.5% per year since 2015. The country’s unemployment rate is also low, standing at around 6.5% in 2019. Inflation in Barbados is also relatively low, with the average rate standing at around 2.5% in 2019.
Overall, Barbados has a strong and growing economy, with a diverse range of sectors contributing to its GDP. The country’s low unemployment rate and low inflation rate are also positive indicators of its economic health."
Barbados has a progressive tax system, where the tax rates increase with the level of income. There are two types of taxes in Barbados: personal income tax and corporate income tax.
Personal Income Tax:
The personal income tax rates in Barbados for the year 2021-2022 are as follows:
- 0% on the first BBD 25,000
- 12.5% on the next BBD 25,000
- 17.5% on the next BBD 25,000
- 35% on any income above BBD 75,000
The personal income tax is payable by all individuals who are resident in Barbados, on their worldwide income.
Corporate Income Tax:
The corporate income tax rate in Barbados is 5.5%, which is applicable to all corporations, including international business companies (IBCs). This rate applies to both local and foreign-source income, and there is no distinction between active and passive income.
Process and Calendar for Payments:
For individuals, the tax year in Barbados runs from April 1st to March 31st. The deadline for filing personal income tax returns is April 30th of the following year. Tax payments are also due by April 30th.
For corporations, the tax year in Barbados runs from January 1st to December 31st. The deadline for filing corporate tax returns is March 15th of the following year. Tax payments are also due by March 15th.
Late payment of taxes may result in interest charges and penalties. It is important to consult with a tax professional to ensure compliance with all tax obligations.
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