Business companies, Societies or similar bodies corporate that are resident in Barbados are required to pay tax on their net income earned in their fiscal year. A fiscal year for tax purposes in Barbados may not exceed 53 weeks. After a business entity is formed, they should by resolution or similar agreement determine their fiscal year. Once this has been completed, they should apply to the Revenue Commissioner to confirm that year end for tax purposes. Administratively, this is done by registering the business on the Tax Administration Management Information System (TAMIS).
Business entities that are managed and controlled in Barbados are resident for tax purposes and are subject to tax on their world income. A business whose place of management and control is outside Barbados is non-resident for tax purposes. It is subject to tax only on income derived or remitted to Barbados.
Bodies corporate are required to prepay their estimated tax liability as follows:
If their fiscal year is between January 1st and September 30th it must pay 50% of tax paid for the previous income year on October 15th. The balance of the tax due for that fiscal year is payable when the corporation tax return is filed, not later than March 15th of the following year.
If their fiscal year is between October 1st and December 31st it must pay 50% of tax paid for the previous income year on December 15th. The balance of the tax due for that fiscal year is payable when the corporation tax return is filed not later than June 15th of the following year.