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Barbados: Domestic Corporate Taxation

Withholding Tax

This page was last updated on 9 Apr 2019.

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.

From 2013, non-treaty country withholding taxes have been 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.

 

 

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