The key incentives offered under the International
Business Companies Act and the Society with
Restricted Liability Act are as follows:
- Tax on income on a sliding scale, from a maximum of 2.5% to a minimum of 1%.
- A tax credit in respect of taxes paid outside of Barbados, but only to the extent it reduces the tax payable in Barbados to a minimum of 1%.
- Exemption from all withholding taxes on payments to persons not resident in Barbados.
- No capital gains tax or estate duty.
- Freedom from exchange control regulations.
- Books and records may be kept in a foreign currency.
- Guarantee of benefits for a period of fifteen years.
- No minimum capital or thin capitalization.
- Provisions for inward and outward redomiciliation.
- Access to the Barbados tax treaty network in some cases.
- Modern corporate legal framework.
- Income tax concessions for specially qualified expatriate employees.
- The sale of foreign real estate or investments, and the transfer of equity or quotas in an IBC or Society are not subject to local transfer taxes and stamp duty.
- An IBC or International Society may import, free from all customs duties, machinery or materials for use in its business.