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Barbados: Double Tax Treaties

Table of Treaty Rates

The table gives the rates of withholding tax applying to payments made from Barbados to residents of the treaty countries listed. NB: These percentages are given for general guidance only - tax treaties are complex, and reference should be made to professional advisers before any action is based on the information given.

Country

Dividends

Royalties (note 3)

Interest (note 3)

Participation < 10% (note1)

Participation > 10% (note 2)

United States
15%
5%
5%
5%
Canada
15%
15%
15%
10%
United Kingdom
nil
nil
15%
15%
Switzerland
35%
35%
n/a
nil
Finland
15%
5%
5%
5%
Norway
15%
5%
5%
5%
Malta
5%
5%
5%
5%
CARICOM
15%
15%
15%
10%

Notes:

  1. The rate of withholding applies if the receiving company owns less than 10% of the capital of the paying company
  2. The rate of withholding applies if the receiving company owns 10% or more of the capital of the paying company
  3. There are a number of conditions attached to the 5% withholding rates under the US treaty; in the case of Barbados the withholding tax on royalties applies only to royalties on films.

From income year 2007 and onwards, dividends derived by Barbadian resident companies, including international business companies, will be exempt from tax in Barbados on dividends from an overseas company where the Barbados resident is a shareholder representing at least 10% of the capital of the overseas company and the shares are not held as a portfolio investment.

It was also announced in 2007 that payments by a resident Barbados company to non-resident shareholders out of foreign source income are also exempt from withholding tax.

 

 

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