Caribbean: Changes affecting 2023 payroll and related withholdings

Countries in the Caribbean region have announced changes affecting payroll and related withholdings for 2023.

Countries in the Caribbean region have announced changes

Article Posted date 12 January 2023

Several countries in the Caribbean region have announced changes affecting payroll and related withholdings for 2023, affecting employers, employees, and self-employed persons.

Antigua and Barbuda

  • The contribution rates will increase by 0.5% over 2022.
  • There has been no change to the 10% rate for self-employed persons.
  • The pensionable age will increase from 62 to 64.

Aruba

  • Parliament enacted the 2023 tax plan introducing a reduction in the individual income tax graduated rate scale.
  • The tax-free threshold is raised from AWG 28,861 to AWG 30,000.

Barbados

  • The National Insurance & Social Security (NIS) maximum insurable earnings limit is increased. Contribution rates remain unchanged.

Bermuda

  • Proposed changes to the employee payroll rates would increase the payroll tax cap; reduce the payroll tax for small and medium-sized businesses; eliminate the payroll tax for farmers, fishermen, educational, sport and science institutions, and small businesses; increase the exempted company payroll tax; and end all pandemic-related payroll tax concessions.
  • Further proposals were announced to change Bermuda’s social insurance system from a fixed-rate contribution to one based on a percentage of income.

Curacao

  • The 2023 threshold amounts were published for public pensions, allowances, premium rates, wage limits, premium income limits and the contribution for social insurance. The amounts remained the same in comparison to 2022 (with some exceptions).
  • The Curacao Minister of Finance published the 2023 individual income tax rates and allowances.
  • The 2023 individual income tax allowances were also announced.

Saint Lucia

  • The Inland Revenue Department (IRD) announced changes to the individual income tax regime.

Saint Vincent and the Grenadines

  • The tax administration confirmed that the minimum tax rate for both corporations and individuals dropped from 30% to 28%.
  • The standard tax deduction for individuals has been increased from XCD 20,000 to XCD 22,000.
  • The 2023 tax tables have been changed to reflect the changes.
     

Read a January 2023 report [PDF 275 KB] prepared by the KPMG member firm in Barbados and the Eastern Caribbean

 

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