Prime Minister Mia Amor Mottley has announced an overhaul of Barbados’ corporate tax structure that raises the rate for bigger firms and provides incentives for job creation, investment and innovation.
This is part of efforts to comply with the requirements of international agencies and to avoid being blacklisted by watchdogs such as the OECD which has mandated a global minimum tax rate of 15 percent.
The announcement was made in a ministerial statement delivered by Miss Mottley in the House of Assembly.
Barbados had lowered its corporate tax to 5.5 percent to avoid being blacklisted for setting special rates for international companies.
But while small businesses here will continue to benefit from the 5.5 percent rate, for larger firms the tax rate is being raised from January 1st next year.
But there will also be a top up tax.
Companies are also being required to pre-pay tax monthly.
Miss Mottley notes the changes will not just comply with international requirements but earn government more revenue. She speculates that some companies will leave but says efforts will be made to persuade them to stay.
