Barbados: Domestic Corporate Taxation
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.