Back To Top

Your Lowtax Account


Barbados: Domestic Corporate Taxation

Withholding Tax

Barbados-resident companies apply withholding tax at 15% on dividend payments to non-residents and 12.5% to residents. Dividends paid out of foreign source income do not attract withholding tax. See Double Taxation Treaties for details of withholding rates for Treaty partners.

In 2013, non-treaty country withholding taxes are as follows:

  • Dividends paid out of foreign source income 0%
  • Dividends paid from non-foreign source income 15%
  • Interest 15%
  • Rents 25%
  • Royalties 15%
  • Management/Technical Aid Fee 15%
  • Dividends from untaxed profits 25%
  • Services other than Management 25%
  • Covenants 20%
  • Branch profits remitted/deemed remitted 10%
  • Barbados Government Securities 0%
  • Professional fees 0%

A company must keep a clear division in its accounts between the different streams of revenue and dividends paid out of them, and make appropriate reports to the tax authorities when remitting the withholding tax.

 

 

Back to Barbados Index »