WORLD TRADE
ORGANIZATIONG/SCM/Q3/BRB/9/Corr.1*
15 July 2002
(02-3912)
Committee on Subsidies
and Countervailing MeasuresOriginal:  English
SUBSIDIES
Requests Pursuant to Article 27.4 of the Agreement
on Subsidies and Countervailing Measures
Replies to Follow-Up Questions Posed by the UNITED STATES1
Regarding the Notification of BARBADOS2
Corrigendum
The following communication, dated 7 July 2002, has been received from the Permanent
Mission of Barbados.
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The following text of the Income Tax Act was inadvertently omitted from the original
notification and should be inserted on page 177 imme diately after the table at the top of the page as
follows:
                                                     
*In English only.
1 G/SCM/Q3/BRB/7.
2 G/SCM/N/74/BRB, G/SCM/N/71/BRB and G/SCM/Q3/BRB/6.G/SCM/Q3/BRB/9/Corr.1
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FIRST SCHEDULE 1987-26
1990-27
(Sections 12, 14A and 14A.1)
METHOD OF CALCULATING EXPORT ALLOWANCE
1. An export allowance set off for the purpose of subsection (1) of section 14A shall be
calculated as follows:
Export profits as percentage of
total profitsRebate of income tax as a
percentage of income tax on
export profits
up to 20% 35%
21% but under 41% 45%
41% but under 61% 64%61% but under 81% 79%
81% and over 93%
2. For the purposes of calculation, export profits shall be deemed to be profits arrived at by the
formula E x P where:
S
(a) 'E' represents the proceeds of sales (ex-factory) of the output of the company exported
to a country other than a country within the Common Market during its income year;
(b) 'P' represents the profits of the company from all sales of the product in respect of
which the allowance is granted for its income year;
(c) 'S' represents the proceeds of sales (ex-factory) of the total output of the enterprise
during its income year.
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1987-26 SECOND SCHEDULE
1998-31
(Sections 12D, 12E and 12G)
PART I
Expenditure on Market Research and Development
1. Fares, accommodation and subsistence incurred by the taxpayer himself or his employee on
overseas promotional tours or market research and development.
2. Salaries and wages in respect of time spent outside Barbados by an employee primarily and
wholly for the purpose of promoting exports.
3. Payments to an agent in Barbados in respect of travel undertaken by that agent outside
Barbados in respect of promotion work on behalf of the taxpayer.  The agent must be involved inG/SCM/Q3/BRB/9/Corr.1
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export promotion.  If he is not so fully engaged expenditure must be apportioned.  Expenses of
commissions on sales are not allowable.
4. Payments to an agent outside Barbados primarily and principally engaged in export sales
promotion on behalf of the taxpayer.  Commissions on sales are not allowable.
5. Expenses of employees based overseas.6. Expenses of advertising or other means of soliciting business outside Barbados.7. Expenses of bringing potential customers to Barbados (travel, accommodation and
subsistence).
8. Expenses of exhibiting at overseas exhibitions, trade-fairs or similar activities.9. Expenses of providing free samples to overseas buyers or agents for the purpose of inducing
sales, or the provision of technical information.  (Gratuities are not allowable).
10. The training in Barbados of independent overseas agents or buyers for the purpose of the
promotion of export sales.
11. Payments to associations approved by the Minister for carrying out export promotional
activities for their members.
12. Costs of preparing overseas tenders and quotations.13. Costs of brochures, pamphlets or similar products primarily for overseas distribution.14. Communication costs.
PART II
Expenditure Incurred in Tourist Industry
1. Fares, accommodation and subsistence of th e taxpayer or his employee travelling from
Barbados overseas on tourist promotion, exclusive of the cost of a holiday trip.
2. Salaries and wages paid to employees during their travel overseas to promote tourism,
calculated proportionately in accordance with the duration of the trip.
3. Payments to an agent in Barbados engaged in tourist promotion, to undertake promotion work
overseas on behalf of the taxpayer.  Commissions on sales are not allowable.
4. Costs (other than capital costs) of establishing and maintaining a permanent overseas sales
representative as an employee to engage primarily and principally in tourist promotion for the benefit
of the taxpayer.
5. Costs of advertising or other means of soliciting business or publicity outside Barbados.6. Costs of supplying brochures or pamphlets for distribution abroad.7. Expenditure incurred at fairs, exhibitions and travel marts, for tourist promotion.G/SCM/Q3/BRB/9/Corr.1
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8. Expenditure on overseas market research or on the obtaining of overseas market information.
9. Contributions to joint tourist promotion arrangements to be carried out abroad.
10. Costs of bringing to Barbados tour operators for briefing where the promotion of tourist
services is the sole objective.
PART III
Qualifying Overseas Construction Projects
1996-51. Work in connection with the construction, erection, installation, repair, maintenance,
cleaning, painting, renewal, removal, alteration, dismantling or demolition of:
(a) Any building, erection, edifice, structure, wall, fence or chimney, whether
constructed wholly or partly above or below ground level;
(b) any road, motorway, harbour works, railway, cableway, tramway, canal or
aerodrome;
(c) any drainage, irrigation or river control;(d) any electricity, water, gas, telephone or telegraph reticulation;(e) any bridge, viaduct, dam, reservoir, earthworks, pipeline, aqueduct, culvert, drive,
shaft, tunnel or reclamation;
(f) any scaffolding.
2. Architectural services.
3. Construction projects.4. Engineering projects.
5. Management consultancy.
6. Technical and administrative services.
PART IV
Qualifying Overseas Professional Services
1. Architectural (including contract supervisi on) services, surveying, valuation, design or
planning services.
2. Economic evaluation and research.G/SCM/Q3/BRB/9/Corr.1
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3. Engineering services (including contract supervision).
4. Technical and advisory services performed or supplied in relation to the following     1990-27
activities:
(a) Establishment or maintenance of accounting systems;(b) establishment, maintenance or development of any agricultural project;(c) establishment or maintenance of auditing systems;
(d) establishment or maintenance of computer software systems;
(e) establishment, maintenance or development of any farming project;(f) establishment, maintenance or development of any fishing project;(g) establishment, maintenance or development of any horticultural project;(h) establishment or maintenance of management systems;
(i) establishment or maintenance of organizational systems;
(j) establishment or maintenance of training systems;(k) the encouragement, development or establishment of business in Barbados by foreign
investors or non-nationals;
(l) repair work carried out in Barbados on foreign owned assets temporarily imported
into Barbados.
5. Construction projects. 1996-5
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