In its 2022 budget, Barbados introduces a one-time 15% COVID-19 contribution levy on domestic businesses in certain sectors, among other tax changes. Specifically, certain companies that generated income of more than BBD $5 million must pay 15% of their 2020 and 2021 net income to the Barbados tax authority. The 2022 Barbados budget was tabled on March 14, 2022.
COVID-19 contribution levy
This one-time levy, which is not deductible for corporate tax purposes, applies to:
- Telecommunications companies
- Companies in the retail sale of petroleum products by dealers
- Deposit taking institutions (except credit unions)
- General and life insurance companies.
The budget states that affected companies could pay the levy in eight monthly payments, starting on July 15, 2022. The levy for the 2021 fiscal year would be due from July to October 2022, and the levy for the 2022 year would be due from November to February 2023.
The Barbados budget includes other measures affecting international companies to:
- Place a temporary one-year cap on freight for the purpose of calculating customs duties on certain containers until March 2023
- Reduce import duties and tariffs on certain electric and solar-powered vehicles, as well as vehicles powered by natural gases designated as a bridging fuel to renewable energy.
For more information, contact your KPMG adviser.
Information is current to March 21, 2022. The information contained in this publication is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavour to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act upon such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's National Tax Centre at 416.777.8500