Barbados Abolishes Consolidation Tax
by Mike Godfrey, Lowtax.net, Washington
19 April, 2016
The Barbados Revenue Authority has advised that the Consolidation Tax Act was repealed on March 31, 2016. Consolidation Tax should no longer be deducted from the salary/remuneration of employees as of April 2016.
Consolidation Tax was formerly chargeable on the gross income of an individual who earned BBD50,000 (USD25,000) or more in any income year. The rates of consolidation tax payable by individuals were: half a percent on gross income between BBD50,000 (USD25,000) and BBD75,000 (USD37,500); one percent on gross income between BBD75,001 (USD37,500) and BBD100,000 (USD50,000); two percent on gross income between BBD100,001 (USD50,000) and BBD200,000 (USD100,000); and three percent on gross income above BBD200,000 (USD100,000).
Consolidation Tax that is payable for the 2015 income year must be included on an individual's income tax return for that year. This return must be filed on or before April 30, 2016, and any tax due must be paid by this date.
Consolidation Tax payable on income earned for the period January 1, 2016, to March 31, 2016, must be reported on the 2016 income tax return. This return must be filed, and any tax due must be paid, by April 30, 2017.
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