WORLD TRADE
ORGANIZATIONG/SCM/Q3/BRB/9
8 July 2002
(02-3727)
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
The following communication, dated 20 June 2002, has been received from the Permanent
Mission of Barbados.
_______________
The United States posed the question:
1. Could Barbados please provide the implementing legislation, and any relevant
amendments, for each of the programmes for which it is requesting an extension under
Article 27.4 of the ASCM?
In this regard, the Permanent Mission of Barbados has the honour to forward the relevant
legislation as follows:
Page
1. International Business Companies Act – Chapter 77 2
2. International Business (Miscellaneous Provisions) Act, 2001-29 15
3. Societies with Restricted Liability – Chapter 318B 42
4. Fiscal Incentives Act – Chapter 71A 64
5. Income Tax Act – Chapter 73 83
6. Central Bank of Barbados Act – Chapter 323C 215
7. The Central Bank of Barbados (Inspection of Financial Institutions)
(Revocation) Notice 1998 239
1G/SCM/Q3/BRB/7.
2G/SCM/N/74/BRB, G/SCM/N/71/BRB and G/SCM/Q3/BRB/6.G/SCM/Q3/BRB/9
Page 2
CHAPTER 77
INTERNATIONAL BUSINESS COMPANIES
ARRANGEMENT OF SECTIONS
SECTION
1. Short title.
2. Purposes of Act.
3. Interpretation.
4. International manufacturing.
5. Ineligibility: Fiscal Incentives Act .
6. International trade and commerce.
7. Application for licence.
8. Conditions for making application.
9. Licence.
10. Special tax provisions.
11. Exemption under Income Tax Act .
12. Tax concessions for specially qualified persons.
13. Dividends and other payments.
14. Withholding tax.
15. Transfer of assets.
16. Prohibition against accepting loans from or otherwise dealing with local banks.
17. Authority to keep books and records in foreign currency.
18. Exchange Control.
19. Cap. 316 not applicable to international business companies.
20. Machinery, equipment exempt from certain taxes and duties.
21. Record and inspection of machinery and equipment.
22. Filing of financial statement not required.
23. Savings.
24. Exemption from stamp duty.
25. Prohibition against disclosure.
26. Compliance with Companies Act .
27. Guarantees by Minister.
28. Notice to Minister.
29. Regulations.
30. Transitional.G/SCM/Q3/BRB/9
Page 3
CHAPTER 77
INTERNATIONAL BUSINESS COMPANIES
An Act to Revise the Law Governing International Business Companies.
1991-24.
1998-35.
[1 March 1992]
Commencement 1992/20
1. This Act may be cited as the International Business Companies Act .
Purposes of Act
2.(1) The purposes of this Act are to revise the law governing international business companies
carrying on the business of international manufacturing or international trade and commerce from
within Barbados with a view to:
(a) Encouraging the development of Barbados as a responsible international financial
centre;
(b) provision of incentives by way of tax reduction, exemptions and benefits for
international manufacturing and international trade and commerce from within
Barbados.
(2) This Act shall receive such fair, large and liberal construction and interpretation as best
ensures the attainment of its purpose.
Interpretation
3.(1) In this Act:
"business" means any business, trade, manufacture, concern or adventure in the nature of
trade or business;
"Caricom region" means the region comprised within the jurisdictional areas of the member
States of the Caricom Community established by the Treaty signed on 4 July 1974 at Chaguaramas;
"company" means a body corporate however and wherever incorporated;
"foreign currency" means a currency that is foreign in every member State which constitutes
the Caricom region;
"international business" means the business of international manufacturing or international
trade and commerce;
"international business company" means a company that satisfies the conditions set out in
section 8 and holds a valid licence under this Act;
"international manufacturing" shall be construed in accordance with section 4;
"international trade and commerce" shall be construed in accordance with section 6;
"Minister" means the Minister responsible for Finance;G/SCM/Q3/BRB/9
Page 4
"resident outside the Caricom region" means:
(a) In relation to an individual, someone who is not ordinarily resident in any of the
member States of the Caricom region; and
(b) in relation to a company, a company at least 90 per cent of whose issued shares of all
classes (if any) or other ownership are beneficially owned or controlled, whether
directly or indirectly, by persons who are not ordinarily resident in any of the member
States of the Caricom region;
"securities" means any deposits evidenced by an instrument in writing, shares, stocks, bonds,
notes (other than promissory notes issued by individuals), debentures, debenture stock, units under a
unit trust scheme and any other securities prescribed under section 29.
(2) For the purposes of this Act, an international business company shall be deemed to be
resident in Barbados where that company is incorporated or registered under the laws of Barbados.
International manufacturing
4. For the purposes of this Act, international manufacturing is the business of making,
processing, preparing or packaging within Barbados any product which is exclusively for export to
countries outside the Caricom region.
Ineligibility Fiscal Incentives Act . Cap. 71A
5. A company which has held a licence under this Act shall not be eligible to apply to become
an approved enterprise under the Fiscal Incentive Act .
International trade and commerce
6.(1) For the purposes of this Act, but subject to subsection (2), international trade and commerce
is:
(a) The business of being a broker, agent, dealer, seller, buyer or factor within Barbados
of goods existing outside Barbados or of goods to be transhipped through or from
Barbados;
(b) the business of the selling of services which, if originating in Barbados, are to or for,
or on account of, persons resident outside the Caricom region;
(c) the business of providing from within Barbados a prescribed service for a company
carrying on business in Barbados under an enactment referred to in section 7(2), other
than a licensed bank referred to in paragraph (e) of that subsection; or
(d) subject to this Act, any other business carried on from Barbados.
(2) None of the activities provided for under the enactments specified in paragraphs (a) to (e) of
section 7(2) constitutes international trade and commerce for the purposes of this Act.
Application for licence
7.(1) Subject to subsection (2), a company may apply to the Minister for a licence to carry on the
business of an international business company if:G/SCM/Q3/BRB/9
Page 5
(a) The company:
(i) Is, on 1 March 1992 carrying on; or
(ii) intends to carry on;
from within Barbados the business of international manufacturing or international
trade and commerce; and
(b) satisfies all the conditions set out in section 8.
(2) Subsection (1) does not apply to a company that carries on business:
Cap. 325 (a) As a licensee under the Offshore Banking Act ;
Cap. 93B (b) as a licensee under the Caribbean Financial Services Corporation Act ;
Cap. 308A (c) as a licensee under the Exempt Insurance Act ;
Cap. 59C (d) as a licensed under the foreign Foreign Sales Corporation Act ;
Cap. 322 (e) as a licensed bank under the Banking Act ;
Cap. 90A (f) under the Shipping Incentives Act ; or
(g) under any other prescribed enactment.
Conditions for making applications
8.(1) A company shall not be granted a licence under this Act unless:
(a) It is resident in Barbados;
(b) to (d) Repealed by 1998-35 ;
(e) the company satisfies the Minister by furnishing the Minister with such information
as he may require that it is financially capable of carrying on the business of
international manufacturing or international trade and commerce and of complying
with any prescribed conditions.
(2) For the purpose of this section, an individual who is ordinarily resident in Barbados by reason
only of an employer and employee relationship with a company licensed under this Act or any of the
legislation referred to in subsection (2) of section 7 hereof other than a licensed bank referred to in
paragraph (e) of that subsection, shall not be deemed to be resident in Barbados.
Licence
9.(1) Where an application is approved by the Minister he may issue a licence subject to such
conditions as he may specify in the licence, and upon payment of the prescribed fee.
(2) No company granted a licence under this Act shall engage in any other business other than
international business.G/SCM/Q3/BRB/9
Page 6
(3) Unless cancelled under subsection (4), a licence remains in force until 31 December of the
year in which it was issued, and may be renewed before the first day of January in each year on
payment of the prescribed fee.
(4) Subject to subsection (5), the Minister may by notice in writing cancel or refuse to renew a
licence where a company contravenes subsection (2) or fails to comply with a condition of its licence,
any condition set out in section 8, or otherwise fails to comply with any requirement of this Act or any
regulations made thereunder.
(5) Where the Minister intends not to renew, or to cancel the licence of a company, he shall give
to that company notice in writing of this intention and the reason therefor.
(6) A notice given under subsection (5) shall state that the company may within 21 days of
service of the notice make representation in writing to the Minister as to why the Minister should not
take the action intended.
(7) A person who is aggrieved by the cancellation of a licence or the failure to renew a licence
under subsection (4), may, within 30 days after it is notified of the Minister's decision pursuant to
subsection (6), apply to the High Court for an order requiring the Minister to revoke the cancellation
of its licence or to renew its licence, as the case may be, and the Court may make such order as it
thinks fit in the circumstances.
Special tax provisions. Cap. 73
10.(1) Subject to this section and section 11, in lieu of tax at the rate specified under the Income Tax
Act, there shall be levied and paid to the Commissioner of Inland Revenue in respect of the income
year 1991 and in each subsequent income year of an international business company, a tax on the
profits and gains of the company at the following rates:
(a) 2.5 per cent on all profits and gains up to $10,000,000;
(b) 2 per cent on all profits and gains exceeding $10,000,000 but not exceeding
$20,000,000;
(c) 1.5 per cent on all profits and gains exceeding $20,000,000 but not exceeding
$30,000,000;
(d) 1 per cent on all profits and gains in excess of $30,000,000.
(2) An international business company may elect to take a credit in respect of taxes paid to a
country other than Barbados provided that such an election does not reduce the tax payable in
Barbados to a rate less than 1 per cent of the profits and gains of the company in any income year.
Cap. 325, Cap. 73
(3) An international business company all of whose shares form part of the assets of a trust
described in section 105 of the Offshore Banking Act , shall not be subject to tax under that section or
under the Income Tax Act , on the profits and gains of that company if it is managed by an offshore
bank and if its activities are restricted to engage exclusively in the business of buying, selling, holding
or managing securities.
(4) An international business company may, by order made by the Minister under this subsection,
pay tax at a rate other than that fixed by subsection (1), provided that such rate shall not be less than
1 per cent on the profits and gains of the company in any income year.G/SCM/Q3/BRB/9
Page 7
(5) Repealed by 1998-35 .
(6) An order under subsection (4), shall be subject to negative resolution.
Exemption under Income Tax Act . Cap. 73
11. An international business company shall not be liable to pay any tax under the Income Tax
Actexcept as is provided by section 10 hereof in respect of an income year, nor shall it be liable under
this or any other enactment to pay any other direct tax on its profits and gains in respect of that
income year.
Tax concessions for specially qualified persons
12.(1) Where an international business company requires the services of specially qualified
individuals in order to carry out its business effectively from within Barbados and:
(a) It is unable to acquire those services in Barbados; and
(b) it is unable to retain those services from outside Barbados without special tax
concessions;
the Minister may grant a tax concession in respect of those specially qualified individuals.
(2) The tax concession referred to in subsection (1) is one that allows a prescribed percentage of
an employee's or contractor's salary or fees:
(a) To be exempt from income tax in Barbados;
(b) to be paid in a foreign currency in a trust account without being liable to income tax
in Barbados as to the amount paid or any interest earned thereon; or
(c) to be paid in some other prescribed manner in another currency or otherwise without
being liable to income tax in Barbados;
Cap. 73, Cap. 71
notwithstanding any provisions of the Income Tax Act or the Exchange Control Act .
Dividends and other payments. Cap. 73
13.(1) All dividends, royalties, interest, fees, management fees, paid or deemed to be paid by an
international business company to a company carrying on international business or to a person
resident outside Barbados are exempt from tax under the Income Tax Act .
(2) Subject to subsection (1), tax at the appropriate rate under the Income Tax Act shall be levied
and is payable to the Commissioner of Inland Revenue upon any dividends, royalties, interest,
management fees, fees, salaries, emoluments or other income paid or deemed to be paid by an
international business company to a person resident in Barbados who does not carry on an
international business.G/SCM/Q3/BRB/9
Page 8
Withholding tax
14. Notwithstanding the Income Tax Act , an international business company need not withhold
any portion of the dividends, royalties, interest, management fees, fees or other income paid or
deemed to be paid by an international business company to a person who is not resident in Barbados
or who, if so resident, carries on an international business.
Transfer of assets
15.(1) No tax, duty or other impost shall be levied on an international business company, its
shareholders or transferees in respect of any transfer of any securities or assets of the company, other
than a transfer of taxable assets, to a person who is not resident in Barbados or who, if so resident,
holds a licence under section 9 to carry on international business.
(2) For the purposes of subsection (1),the following assets are taxable assets in the hands of an
international business company, namely:
(a) Real property situated in Barbados and held by or on behalf of the company; and
(b) all office equipment, supplies, furnishings and fixtures, machinery, vehicles and
equipment used in Barbados in carrying on the business and affairs of the company.
Prohibition against accepting loans from or otherwise dealing with local banks. Cap. 322
16.(1) Except as provided by this Act, an international business company shall not in the course of
its business accept loans from, or otherwise transact business with, a bank licensed under the Banking
Act.
Cap. 322
(2) Subsection (1) does not extend to preclude an international business company from holding a
bank account with a licensed bank within the meaning of the Banking Act .
Cap. 325
(3) Notwithstanding anything contained in this Act, an international business company may place
fixed-term deposits with a company or foreign bank that carries on the business of offshore banking
(within the meaning of the Offshore Banking Act ) within Barbados, and income derived from such
deposits is subject to income tax at the rate specified in section 10(1).
Authority to keep books and records in foreign currency. Cap. 308. Cap. 73
17. Notwithstanding any enactment to the contrary, an international business company may keep
in a foreign currency such books, records and financial statements as it is required to keep under the
Companies Act and the Income Tax Act .
Exchange control. Cap. 71
18.(1) Section 11(2) of the Exchange Control Act does not apply in respect of a person who
incorporates or registers or intends to incorporate or register in Barbados a company to obtain a
licence under this Act and become an international business company.G/SCM/Q3/BRB/9
Page 9
Cap. 71
(2) The Exchange Control Act does not apply to international business companies in respect of
their international trade and commerce, and international manufacturing.
Cap. 316 not applicable to international business companies
19. The Rate of Interest Act does not apply to international business companies in respect of their
international trade and commerce, and international manufacturing.
Machinery, equipment exempt from certain taxes and duties
20.(1) An international business company may import free of customs duty, consumption tax,
ad valorem stamp duty and other like duties, taxes and imposts, such plant, machinery, equipment,
fixtures, appliances, apparatus, tools and spare parts, and such raw materials, goods, components and
articles, as is necessary for the company to carry on its international business.
(2) The goods referred to in subsection (1) may only be imported free of the duties, taxes and
imposts referred to in that subsection where the Secretary or Managing Director of the company
certifies to the Comptroller of Customs, in this Act referred to as the "Comptroller", that the goods are
imported for use exclusively in the international business of the company.
(3) When an international business company imports under this section any materials, goods or
articles free of any duty, tax or impost, those materials, goods or articles shall not be sold or disposed
of in Barbados otherwise than in the ordinary course of the company's international trade and
commerce, and international manufacturing, until after the expiration of five years from the date of
importation, unless:
(a) The sale or disposition is to another international business company; or
(b) the amount of duty, tax or other impost that would have been payable had
subsection (1) or (2) not applied is first paid to the Comptroller of Customs and a
certificate of such payment is issued by the Comptroller.
(4) Nothing imported or purchased free of any duty, tax or impost under this section by an
international business company shall, without the prior written approval of the Minister, be used for
any purpose other than the purpose stated for customs when it was so imported or purchased unless it
is subsequently acquired by another person pursuant to subsection (3).
(5) A person who contravenes any provision of this section commits an offence and is liable on
summary conviction to a fine not exceeding $10,000 or imprisonment for a term of two years, or both.
Record and inspection of machinery and equipment
21.(1) An international business company which:
(a) Imports into Barbados from a country outside the Caricom region; or
(b) purchases within the Caricom region;
any article in respect of which it has been granted relief from customs duty under section 20
shall comply with subsection (2).
(2) An international business company referred to in subsection (1) shall:G/SCM/Q3/BRB/9
Page 10
(a) Keep a record of the articles so imported or purchases in such form and containing
such particulars as the Comptroller requires;
(b) cause the articles to be marked in such manner as the Comptroller requires;
(c) permit the Comptroller or a person authorized by him for the purpose, to inspect at
reasonable times such record, and to have access to any factory or warehouse under
its control for the purpose of examining any such article which the Comptroller has
reason to believe to be therein, and of satisfying himself of the accuracy of the
particulars contained in the record.
(3) An international business company which contravenes any of the provisions of this section is
guilty of an offence and liable on summary conviction to a fine of $10,000.
Filing of financial statement not required. Cap. 308
22.(1) Notwithstanding section 152 of the Companies Act , an international business company is not
required to file the financial statement or balance sheet and documents required to be filed with the
Registrar of Companies under section 147 of that Act.
SS 1998-35. Cap. 308
(1A) Notwithstanding subsection (1), an international business company shall forward to the
Minister of Finance annual audited financial statements in the same manner and for the same period
as required by section 147 of the Companies Act .
Cap. 77. Cap. 308
(2) An international business company, within the meaning of the International Business
Companies (Exemption from Taxes) Act , in force immediately before 1 March 1992 that did not
comply with section 147 of the Companies Act shall not after that date be required to comply with that
section.
Savings. Cap. 73
23. Exempt to the extent that this Act operates to exempt an international business company from
tax under the Income Tax Act , all the provisions of that Act apply, with necessary modifications to an
international business company.
Exemption from stamp duty. Cap. 91
24. An international business company is exempt from ad valorem stamp duty except in respect
of real estate situated in Barbados and shall pay a fixed duty as specified in the Schedule to the Stamp
Duty Act .
Prohibition against disclosure
25.(1) No person shall disclose any information relating to any application of a prospective licensee
or to the affairs of a licensee, other than so far as such information forms part of the public record in
the possession of the Registrar of Corporate Affairs, except when authorized by the prospective
licensee or licensee to do so or when lawfully required to do so by a court of competent jurisdiction.G/SCM/Q3/BRB/9
Page 11
(2) A person who contravenes this section commits an offence and is liable on summary
conviction to a fine of $10,000 or imprisonment for a term of two years, or both.
Cap. 73
(3) This section does not apply to any person carrying out any duty imposed on him by the
Income Tax Act or otherwise acting in pursuance of any international agreement to which Barbados is
a party.
Compliance with Companies Act . Cap. 308
26.(1) Subject to subsection (2), a licensee which is not incorporated under the Companies Act shall
comply with sections 155 and 164 of the Companies Act as if it had in fact been incorporated under
that Act.
(2) A licensee whose assets or gross income do not exceed $1,000,000 shall not be required to
comply wit the provisions of subsection (1).
Guarantees by Minister
27.(1) The Minister may by agreement give assurances or guarantees to an applicant for a licence
that all or any of the benefits and exemptions contained in this Act will apply to that company for a
period of 15 years on that company becoming a licensee.
(2) An assurance or a guarantee referred to in subsection (1) is subject to a negative resolution.
Notice to Minister
28.(1) Where an international business company:
(a) Ceases to operate as an international business company; or
(b) ceases to satisfy any requirement of this Act or the regulations;
that company, shall, by notice in writing, inform the Minister of that fact.
(2) Where an international business company complies with subsection (1) or the Minister is
otherwise informed of any fact referred to in paragraph (a) or (b) of that subsection, the Minister shall
revoke that company's licence.
Regulations
29. The Minister may make regulations:
(a) To provide information to be furnished for the purpose of applying for a licence to
carry on business as an international business company;
(b) to prescribe securities for the purposes of this Act;
(c) to prescribe any other matter or thing required by this Act to be prescribed; and
(d) generally for carrying out the purposes of this Act.G/SCM/Q3/BRB/9
Page 12
Transitional. Cap. 77
30.(1) Where immediately before 1 March 1992 a company was operating under the provisions of
theInternational Business Companies (Exemption from Taxes) Act , that company shall within
180 days after that date or such further period as the Minister allows, apply for a licence in accordance
with the provisions of this Act.
Cap. 77
(2) Subject to subsection (3), a company referred to in subsection (1) shall continue to be entitled
to the benefits conferred by the International Business Companies (Exemption from Taxes) Act , as if
that Act had not been repealed.
(3) The entitlement to benefits referred to in subsection (2) shall not continue:
(a) Beyond 180 days after 1 March 1992 or such further period as the Minister allows if
an application for a licence is not made within that period; or
(b) where an application for a licence is made in accordance with subsection (1), beyond
the date on which that application is approved or rejected.
(4) Where an application made in accordance with this Act is approved the company shall be
entitled to benefits conferred under this Act from the date of approval.G/SCM/Q3/BRB/9
Page 13
Cap. 77. 1992/21
International Business Companies
INTERNATIONAL BUSINESS COMPANIES REGULATIONS, 1992
Authority: These regulations were made on 28 February 1992 by the Minister under section 29 of
the International Business Companies Act.
Commencement: 2 March 1992.
1. These Regulations may be cited as the International Business Companies Regulations, 1992 .
2.(1) An application for the issue of a licence under section 7 of the Act:
(a) Must state the nature of the international business the company proposes to carry on;
and
(b) must be accompanied by a declaration to the effect that the company satisfies the
requirements of the Act for the issue of a licence.
(2) A declaration referred to in paragraph (1) may be signed by or on behalf of the Secretary of
the company or by a director thereof or by an attorney-at-law on behalf of the company.
Schedule
3.(1) The fees to be paid for the issue and renewal of a licence pursuant to section 9(1) and (3) of
the Act are those prescribed in the Schedule .
(2) Payment of fees shall be in the currency of Barbados, but the equivalent amount in a foreign
currency that is convertible in Barbados may be accepted.
4.(1) For the purposes of section 12 of the Act the tax concession in respect of income tax payable
by specially qualified individuals shall be a maximum of 35 per cent of an employee's or contractor's
salary or fees.
(2) The tax concession may be paid in a foreign currency in a country specified by the employee
or contractor.
_______________
SCHEDULE
(Regulation 3)
Fees
$
For issue of a licence ................................................................................................ 200.00
For renewal of a licence ........................................................................................... 200.00G/SCM/Q3/BRB/9
Page 14
Cap. 77. 1998/164
International Business Companies
INTERNATIONAL BUSINESS COMPANIES (RATE OF TAX) ORDER, 1998
Authority: This Order was made on 18 December 1998 by the Minister under section 10(4) of the
International Business Companies Act .
Commencement: 24 December 1998.
1. This Order may be sited as the International Business Companies (Rate of Tax) Order 1998 .
Schedule. Cap. 308. Cap. 77
2. The companies listed in the Schedule to this Order, being companies incorporated under the
Companies Act and licensed under the International Business Companies Act , shall each pay on their
profits and gains, tax a the rate of one per cent for a period of 12 years commencing with income year
1998.
Cap. 73
3. For the purposes of this Order, "income tax" has the meaning assigned to it by section 85 of
theIncome Tax Act .
SCHEDULE
(Paragraph 2)
CCG Capital Limited
CICL Caribbean International Capital Limited
Adams Capital Limited
Barrow Capital Limited
Cummins Capital Limited
Durham Capital Limited
Erie Capital Limited
Frontenac Capital Limited
Grey Capital Limited
Haliburton Capital Limited
Ironbridge Capital Limited
Joly Capital Limited
Kanata Capital Limited
Worrell Capital LimitedG/SCM/Q3/BRB/9
Page 15
Supplement to Official Gazette dated 27 August 2001
INTERNATIONAL BUSINESS (MISCELLANEOUS
PROVISIONS) ACT, 2001-29
Arrangement of Sections
Section
1. Short title.
2. Amendment of enactments set out in the Schedule.
SCHEDULE
BARBADOS
I assent
C. STRAUGHN HUSBANDS
Governor-General
17 August 2001
2001-29
An Act to amend certain Acts relating to international business and financial services.
Commencement (27 August 2001)
ENACTED by the Parliament of Barbados as follows:
Short title
1. This Act may be cited as the International Business (Miscellaneous Provisions) Act, 2001 .
Amendment of enactments set out in the Schedule
2. The enactments set out in Column 1 of the Schedule are amended in the respects specified
opposite thereto in Column 2 of that Schedule.G/SCM/Q3/BRB/9
Page 16
SCHEDULE
Column 1 Column 2
Enactments Amendments
1.Barbados Foreign Sales
Corporation Act , Cap. 59C
First Schedule1. In subsection 6:
(a) Delete subsection (2) and substitute the following:
"(2) Subject to subsection (3), the Minister may revoke a
licence:
(a) If a licensee:
(i) Fails to comply with a condition of its licence;
(ii) ceases to be a foreign sales corporation under the
laws of a country mentioned in the First Schedule ;
(iii) is in breach of any duty or obligation imposed upon it
by this Act; or
(b) on the grounds of public policy."
2. In the Second Schedule, delete the words "$200" in paragraph 1
and substitute the words "$500".
2. International Business
Companies Act, Cap. 771. In:
(a) Section 3, delete the definition "resident outside the Caricom
region" and substitute the following:
"resident outside Barbados" means unless the context otherwise
requires:
(a) In relation to an individual, someone who is not ordinarily
resident in Barbados; and
(b) in relation to a company, a company where more than
50% of all its issued shares of all classes, if any, or other
ownership, are beneficially owned or controlled, whether
directly or indirectly, by persons who are not ordinarily
resident in Barbados;
(c) in relation to a trust, where:
(i) It is established by a person under paragraph (a)
or (b); or
(ii) the trust is one in which a person referred to in
subparagraph (i) has more than 50% of beneficial
ownership.
(b) section 4, delete the words "to countries outside the Caricom
region";
(c) section 6, delete the words "outside the Caricom region"
appearing in paragraph (b) of subsection (1) and substitute the
words "outside Barbados";
(d) section 9:
(i) insert immediately after subsection (1) the following as
subsection (1A):
"(1A) The Minister may by instrument in writing, delegate
the power conferred on him by this section, except the
power referred to under paragraph (b) of subsection (4), to
the Director or in the absence of the Director of
International Business; but the delegation shall not
preclude the Minister from exercising at any time the
power so delegated.";
(ii) insert immediately after subsection (3) the following as
subsections (3A) and (3B):G/SCM/Q3/BRB/9
Page 17
Column 1 Column 2
"(3A) A company that fails to renew a licence within the
time required by this section shall, in addition to the fee
payable by him under this Act, pay a penalty equal to that
fee.
(3B) Notwithstanding subsection (1), a company that fails
to renew its licence after one month from the date on
which the fee payable for renewal becomes payable, the
company shall be treated as not being licensed under this
Act."
(iii) delete subsection (4) and substitute the following:
"(4) Subject to subsection (5), the Minister may by notice
in writing cancel or refuse to renew a licence:
(a) where the company:
(i) Contravenes subsection (2);
(ii) fails to comply with a condition of its licence or a
condition set out in section 8;
(iii) fails to comply with any requirement of this Act or
any regulations made thereunder; or
(b) on the grounds of public policy;"
(e) section 10, by deleting subsections (4) and (6);
(f) section 12, by deleting in subsection 1(a):
(i) the words "in Barbados" and substituting the words "from
within the Caricom region"; and
(ii) the full stop at the end of subsection (1) and adding thereto
the following:
"who are residents outside of CARICOM".
(g) section 22, delete the words "the Minister of Finance"
appearing in subsection (1A) and substitute the words
"Minister of Industry and International Business".
3. International Trusts Act,
Cap. 2451. In:
(a) Section 13:
(i) Insert immediately after subsection (1) the following as
subsections (1A) and (1B):
"(1A) Notwithstanding any other provisions of this Act, a
trustee of an international trust shall also file with the
Director of International Business in Barbados the
information referred to at subparagraphs (b)(i), (ii) and
(iii) of subsection (1);
(1B) The information referred to in subsection (1A) is
confidential and not available to the public.
(ii) add to paragraph (a) of subsection (3) immediately after
the words "subsection (1)" the words "or 2";
(b) section 19, delete paragraph (g);
(c) section 20, delete the words "or at an undervalue" appearing in
subsection (1).
4.Exempt Insurance Act ,
Cap. 308AIn section 34:
(a) Delete the words "in Barbados" appearing in paragraph (a) of
subsection (1) and substitute the words "within the Caribbean
Community";G/SCM/Q3/BRB/9
Page 18
Column 1 Column 2
(b) delete the words "from outside Barbados" appearing in
paragraph (b) of subsection (1) and substitute the words "from
outside the Caribbean Community"; and
(c) delete the full stop appearing at the end of subsection (1) and
add thereto the following:
"who are resident outside the Caribbean Community."
5. Societies with Restricted
Liability Act, Cap. 318B
"Ministers dissolution1. In section 13, delete the word "director" appearing in
subsection (3) and substitute the word "managers";
2. Insert immediately after section 14 the following as
section 14A:
14A.(1) Subject to this Act and to its articles, a society may
purchase or redeem or otherwise acquire quotas issued by it in
like manner as is provided in respect of shares under
sections 39 to 41 of the Companies Act with such modifications
and adaptations as the circumstances require."
3. In section 40:
(a) Insert immediately after subsection (1) the following in
subsection (1A):
"(1A) The Minister may by instrument in writing delegate
the power conferred on him by this section to the Director
or in the absence of the Director, to the Deputy Director of
International Business; but the delegation shall not
preclude the Minister from exercising at any time the
power so delegated."
(b) delete subsection (5) and substitute the following:
"(5) Subject to subsection (6), the Minister may by notice
in writing cancel or refuse to renew a licence:
(a) where a society:
(i) contravenes subsection (3);
(ii) fails to comply with a condition of its licence; or
(iii) otherwise fails to comply with any requirement of
this Act; or
(b) on the grounds of public policy.";
4. In section 41:
(i) delete the words "in the Caricom region" appearing in
paragraph (b) of subsection (1) and substitute the words
"in Barbados";
(ii) delete subsection (4) and substitute the following:
"(4) For the purposes of this section "Caricom Region"
means the region within the jurisdictional areas of the
Member States of the Caribbean Community established
by the Treaty signed on 4 July 1973 at Chaguaramas.";
5. In section 43, delete subsections (3), (4) and (5) and substitute
the following subsections:
"(3) Where the Minister is satisfied that a society requires the
services of specially qualified persons in order to carry out its
business effectively from within Barbados and that:
(a) It is unable to acquire those services in Barbados; and
(b) it is unable to retain or hire those services from outside the
Caricom region without special tax benefits being made
available;G/SCM/Q3/BRB/9
Page 19
Column 1 Column 2
the Minister may grant a tax concession in respect of the
income tax payable for those specially qualified persons who
are resident outside the Caricom region."
6. In this Act delete the words "exempt society" wherever they
appear and substitute the words "international society";
Offshore Banking Act,
Cap. 325In section 112:
(a) Delete the words "in Barbados" appearing in paragraph (a)
of subsection (1) and substitute the words "within the
CARICOM region";
(b) delete the words "outside Barbados" appearing in
paragraph (b) of subsection (1) and substitute the words
"outside the CARICOM region"; and
(c) delete the full stop appearing at the end of subsection (1)
and add the following:
"who are not residents of CARICOM.".
6. International Business
Companies Regulations, 1992
S.I. 1992 No. 24In regulation 2, delete paragraph 1 and substitute the following:
"(1) An application for:
(a) The issue of a licence under section 7 must be in the
Form 1; or
(b) the renewal of a licence under section 9 must be in
the Form 2
set out in Part III of the Schedule and must be accompanied by
a declaration to the effect that the Company satisfies the
requirements of the Act for the issue or renewal of the licence."
Delete the Schedule and substitute the following:G/SCM/Q3/BRB/9
Page 20
"SCHEDULE
Part I
(Regulation 2)
Forms
FORM 1
APPLICATION FOR A LICENCE AS AN INTERNATIONAL BUSINESS COMPANY
UNDER THE INTERNATIONAL BUSINESS COMPANIES
ACT CAP. 77 OF THE LAWS OF BARBADOS
Notes on Completion
In completing this form, some of the questions may be inapplicable. In such case N/A may be
stated in the appropriate place along with the reason that the question is inapplicable. Where
information requested is inappropriate please give reasons for inappropriateness.
Do not leave any blank spaces. Where a yes/no answer is required, please indicate response
by ticking in the relevant box.
If insufficient space has been provided for a reply at any point, please provide the information
on a SEPARATE SHEET, and refer to it in the space provided for your response. Please ensure that
any sheets are clearly marked with the name of your organization and referenced to the question.
If any further information or clarification is required, it will be requested during the
processing of the application.
Please use black ink and BLOCK CAPITALS or TYPESCRIPT for all answers.
ATTACH THE FOLLOWING DOCUMENTS:
For all companies:
 Cheque in favour of the Permanent Secretary, Ministry of Industry and International
Business;
 certified copy of the Articles of Incorporation/Registration/Continuance;
 certified copy of audited financial statements of the parent company (if applicable);
 due diligence and compliance procedures of person making application on behalf of
the applicant including acceptance procedures and know your customer policies if not
submitted previously.G/SCM/Q3/BRB/9
Page 21
For companies engaged in financial services
In addition to the documents specified above, the following documents should be enclosed:
 An organizational chart showing the senior management and board levels with brief
description of responsibilities;
 projected financial statements to include forecast balance sheets and profit and loss
figures for the first three years of operation, together with assumptions underlying the
preparation of figures where appropriate;
 a detailed three-year business plan setting out how the proposed activities are to be
conducted where appropriate.
PARTICULARS OF THE APPLICANT
1. Name of company:
2. Registration/incorporation number:
3. Date licence requested:
4. Contact details of registered office:
Address:
Telephone number: Facsimile:
Email address: Website:
5. Contact details of place from which company will carry on business
(if different from 4. above):
Address:
Telephone number: Facsimile:
Email address: Website:
6. Contact details of service provider/applicant:
Address:
Telephone number: Facsimile:
Email address: Website:
7. Contact details of auditor if appropriate:
Name:
Address:
Telephone number: Facsimile:
Email address: Website:G/SCM/Q3/BRB/9
Page 22
8. Contact details of proposed local bankers:
Name:
Address:
Telephone number: Facsimile:
Email address: Website:
9. Financial year-end:
10. Number of persons to be employed by the company requiring work permits:
11. Positions to be held by the persons requiring work permits:
12. Will any of the persons requiring work permits be applying for tax concessions
as specifically qualified persons?
YES NO
13. If YES to 12 above, how many?
14. Name, address, registration/incorporation number of all related entities
carrying on business, licensed, incorporated, registered or organized in
Barbados:
15. Which of the following activities does the company plan to engage in,
please indicate in the relevant box:
Manufacturing Distribution (e.g. franchising,
retailing)
Processing Educational services
Investment Environmental services
Professional services Financial services
Computer and related services Health related and social
services
Research and development
servicesTourism and travel-related
services
Real estate services Recreational, cultural and
sporting (e.g. entertainment,
news agency, museums)
Rental/leasing services
without operatorsTransportation servicesG/SCM/Q3/BRB/9
Page 23
Business services (not
mentioned above). Specify:Energy services
Communications (e.g. postal,
courrier telecommunications)Construction and related
engineering services
Other activity not included elsewhere
Specify:
16. Does the company plan to carry on business regulated under any other
enactment in Barbados?
YES NO
17. If YES to 16 above, please specify:
18. Describe fully the international business which the company plans
to carry on:
19. Name (full name including middle name where the shareholder is an
individual), residential address, telephone, facsimile of the proposed
shareholders and percentage shareholding:
Name Former
name
(aliases)Residential
address or
registered officeTelephone
fax &
emailPercentage
share-
holding
20. A profile of each proposed shareholder (academic qualifications, training,
experience, corporate status and description of business where relevant):
(a)
(b)
(c)
21. A profile of each senior manager/director (academic qualifications,
training, experience, corporate status and description of business
where relevant):
(a)
(b)
(c)G/SCM/Q3/BRB/9
Page 24
22. Contact details of the ultimate beneficial shareholders (if different from
19 above):
Name:
Address:
Telephone number: Facsimile:
Email address: Website:
23. State whether, to the best of the applicants' knowledge and belief having
made all reasonable enquiries, any of its senior and managerial staff has
ever in any jurisdiction:
• been convicted of a criminal offence involving fraud, insider
dealing or other dishonesty.
YES NO
• been declared bankrupt or come to any compromise with his
creditors (or analogous proceedings).
YES NO
• been refused or had withdrawn any licence or authorization to
conduct controlled activities.
YES NO
24. If YES to any of the above, give details below.
25. Has the applicant ever been refused or had revoked any authorization
to carry on business in a jurisdiction other than Barbados?
YES NO
26. Has the applicant ever been subject to any disciplinary measures by any
regulatory body of which it is, or was at the time, a member or by any other
regulatory body in Barbados or elsewhere in relation to its business activities?
YES NO
27. So far as the applicant is aware, have the applicant's affairs been investigated
by any regulatory body in Barbados or elsewhere in relation to its business
activities other than enquiries conducted in the course of normal monitoring
and surveillance procedures?
YES NOG/SCM/Q3/BRB/9
Page 25
DECLARATION
I, …………………………………………………………………………………………………………
of ………………………………………………………………………………………………………...
do hereby declare as follows:
(a) That I am authorized to make this application under the International Business
Companies Act, CAP. 77 and the Regulations and that having made all reasonable
enquiries, the information supplied to the Ministry in connection with this application
is, to the best of my knowledge and belief, accurate in material respects and does not
omit any information which might reasonably be considered relevant to the
application;
(b) that I am instructed and verily believe that the company will not carry on any kind of
international business other than that disclosed in the application or licensed under
the International Business Companies Act, CAP. 77;
(c) that the company is not a company described in section 7(2) of the Act, satisfies the
requirements of section 8 of the Act and intends to comply with the requirements of
the Act;
(d) that the applicant will notify the Ministry of any material change in information
supplied in the application or any other manner which occurs during the period in
which the application for authorization is being considered and that thereafter it will
comply with its obligations as regards notification of changes;
(e) that I have conducted the appropriate due diligence with respect to the company,
shareholders, officers and senior managers named in this application and that to the
best of my knowledge all such persons are fit and proper to carry on business from
Barbados.
The applicant authorizes the Ministry to make such enquiries as it may consider necessary in
connection with this application.
Declared this day of 20
Name of declarantG/SCM/Q3/BRB/9
Page 26
FOR OFFICIAL USE
ONLY
ISB Ref.
Date received
FORM 2
(Regulation 3)
RENEWAL OF A LICENCE AS AN INTERNATIONAL BUSINESS
COMPANY UNDER THE INTERNATIONAL
BUSINESS COMPANIES ACT CAP. 77
OF THE LAWS OF BABARDOS
Notes on completion
In completing this form, some of the questions may be inapplicable. In such a case N/A may
be stated in the appropriate place along with the reason that the question is inapplicable.
Do not leave any blank spaces. Where a yes/no answer is required, please indicate response
by ticking in the relevant box.
If insufficient space has been provided for a reply at any point, please provide the information
on a SEPARATE SHEET, and refer to it in the space provided for your response. Please ensure that
any sheets are clearly marked with the name of your organization and referenced to the question.
If any further information or clarification is required, it will be requested during the
processing of the application.
Please submit as an attachment any change(s) made to the information provided on the
application form.
Please use black ink and BLOCK CAPITALS or TYPESCRIPT for an answers.
ATTACH THE FOLLOWING DOCUMENTS:1
For all companies:
 Cheque in favour of the Permanent Secretary, Ministry of Industry and International
Business;
 Copy of Certification of Amendment (if applicable);
 Copy of Certification of Amalgamation (if applicable);
 Copy of Notice of Change of Registered Address (if applicable);
 Audited Financial Statements (if applicable).
1The renewal certificate would not be issued unless all of the relevant documents accompany the renewal form.G/SCM/Q3/BRB/9
Page 27
PARTICULARS OF THE APPLICANT
1. Name of company:
2. Registration/incorporation number:
3. Licence number:
4. Year of last renewal:
5. Was the company name amended within the last year?
YES NO
6. Was the company amalgamated within the last year?
YES NO
7. Was the address of the registered office changed in the last year?
YES NO
8. If YES to No. 7, please provide the contact details of the new address.
Address:
Telephone number: Facsimile:
Email address: Website:
9. Contact details of service provider/applicant:
Address:
Telephone number: Facsimile:
Email address: Website:
10. Statutory requirements:
Date of filing last tax return:
Date of filing last financial statements:
11. Number of management persons in Barbados:
Local:
Foreign:
12. Number of other employees in Barbados:
Local:
Foreign:
13. Total salaries paid in Barbados:G/SCM/Q3/BRB/9
Page 28
14. Other expenses in Barbados:
Travel and entertainment fees:
Government fees
Licence fees:
Work permit fees:
Customs duties:
Property taxes:
Others (specify):
Utilities (water, electricity, telephone, Internet
and other telecommunication expenses):
Accommodation expenses
Office rent:
Housing expenses:
Professional fees
Legal fees:
Accounting and audit fees:
Director's fees:
Management fees:
Other professional fees (specify):
Other administrative expenses (insurance repair
and maintenance cost and office expenses):
Capital expenditure
Purchase of land and/buildings:
Purchase of vehicles:
Purchase of other fixed assets:
Leasehold or freehold improvements:G/SCM/Q3/BRB/9
Page 29
PART II
(Regulation 3)
Fees
$
For issue of a licence ................................................................................................ 500.00
For renewal of a licence ........................................................................................... 500.00
Column 1 Column 2
Enactments Amendments
8. Societies with Restricted
Liability Regulations, 1995
S.I. 1996 No. 21. In these regulations delete the words "exempt society"
wherever it appears and substitute the words "international
society";
2. In Part V:
(a) Delete the words "$200" appearing in paragraph (m) and
substitute the words "$500"; and
(b) delete the words "$200" appearing in paragraph (n) and
substitute the words "$500".
3. In the First Schedule:
(a) Delete the words "Forms 1 to 19" appearing in the title of
the List of Forms at page 1 and substitute the words
"Forms 1 to 21";
(b) insert immediately after paragraph 19 of the List of Forms
the following as paragraphs 20 and 21:
"20. Renewal of a licence under subsection (4) of
section 40 of the Act.
21. Annual Returns";
(c) delete Forms 16 and 17 and substitute the following:G/SCM/Q3/BRB/9
Page 30
FORM 16
APPLICATION FOR A LICENCE AS AN INTERNATIONAL BUSINESS
SOCIETY UNDER SECTION 40 OF THE SOCIETIES WITH
RESTRICTED LIABILITY ACT, CAP. 318B
OF THE LAWS OF BABARDOS
Notes on completion
In completing this form, some of the questions may be inapplicable. In such a case N/A may
be stated in the appropriate place along with the reason that the question is inapplicable. Where
information requested is inappropriate, please give reason for inappropriateness.
Do not leave any blank spaces. Where a yes/no answer is required, please indicate response
by ticking in the relevant box.
If insufficient space has been provided for a reply at any point, please provide the information
on a SEPARATE SHEET, and refer to it in the space provided for your response. Please ensure that
any sheets are clearly marked with the name of your organization and referenced to the question.
If any further information or clarification is required, it will be requested during the
processing of the application.
Please use black ink and BLOCK CAPITALS or TYPESCRIPT for an answers.
ATTACH THE FOLLOWING DOCUMENTS:
For all companies:
 Cheque in favour of the Permanent Secretary, Ministry of Industry and International
Business;
 certified copy of the Articles of Incorporation/Registration/Continuance;
 certified copy of audited financial statements of the parent company (if applicable);
 due diligence and compliance procedures of person making application on behalf of
the applicant including acceptance procedures and know your customer policies if not
submitted previously.
For companies engaged in financial services
In addition to the documents specified above, the following documents should be enclosed:
 An organizational chart showing the senior management and board levels with brief
description of responsibilities;
 projected financial statements to include forecast balance sheets and profit and loss
figures for the first three years of operation, together with assumptions underlying the
preparation of figures where appropriate;
 a detailed three-year business plan setting out how the proposed activities are to be
conducted where appropriate.G/SCM/Q3/BRB/9
Page 31
PARTICULARS OF THE APPLICANT
1. Name of society:
2. Date of organization or continuance in Barbados:
3. Society number:
4. Date licence requested:
5. Contact details of registered office in Barbados:
Address:
Telephone number: Fax number:
Electronic mail: Website:
6. Contact details of registered agents in Barbados:
Address:
Telephone number: Fax number:
Electronic mail: Website:
7. Address from which society will carry on business (if different from 5, above):
Address:
Telephone number: Fax number:
Electronic mail: Website:
8. Contact details of auditor:
Address:
Telephone number: Fax number:
Electronic mail: Website:
9. Financial year-end:
10. Number of persons to be employed by the society requiring work permits:
11. Positions to be held by the persons requiring work permits:G/SCM/Q3/BRB/9
Page 32
12. Will any of the persons requiring work permits be applying for tax concessions
as specifically qualified persons?
YES NO
13. If YES to 12 above, how many?
14. Registration/incorporation number of all related entities carrying on
business, licensed, incorporated, registered or organized in Barbados:
15. Contact details of all related entities carrying on business, licensed,
incorporated, registered or organized in Barbados:
Name:
Address:
Telephone number: Fax number:
Electronic mail: Website:
16. Which of the following activities does the society plan to engage in,
please indicate in the relevant box:
Manufacturing Distribution (e.g. franchising,
retailing)
Processing Educational services
Investment Environmental services
Professional services Financial services
Computer and related services Health related and social
services
Research and development
servicesTourism and travel-related
services
Real estate services Recreational, cultural and
sporting (e.g. entertainment,
news agency, museums)
Rental/leasing services
without operatorsTransportation services
Business services (not
mentioned above). Specify:Energy services
Communications (e.g. postal,
courrier telecommunications)Construction and related
engineering services
Other activity not included elsewhere
Specify:
17. Does the society plan to carry on business regulated under any other
enactment in Barbados?
YES NO
18. If YES to 17 above, please specify:G/SCM/Q3/BRB/9
Page 33
19. Describe fully the business which the society plans to carry on:
20. Name (full name including middle name where the quota/member is an
individual), residential address, telephone, facsimile of the proposed
quota/owners/members and percentage of quota ownership:
Name Former
name
(aliases)Residential
address or
registered officeTelephone
fax &
emailPercentage
quota
ownership
21. A profile of each proposed quota owner/member (academic qualifications,
training, experience, corporate status and description of business where relevant):
(a)
(b)
(c)
22. A profile of each senior manager (academic qualifications, training,
experience, corporate status and description of business where relevant):
(a)
(b)
(c)
23. Contact details of the ultimate beneficial owner (if different from 20 above):
Name:
Address:
Telephone number: Fax number:
Electronic mail: Website:
24. State whether, to the best of the applicants' knowledge and belief having
made all reasonable enquiries, any of its senior and managerial staff has
ever in any jurisdiction:
• been convicted of a criminal offence involving fraud, insider
dealing or other dishonesty.
YES NO
• been declared bankrupt or come to any compromise with his
creditors (or analogous proceedings).
YES NO
• been refused or had withdrawn any licence or authorization to
conduct controlled activities.
YES NOG/SCM/Q3/BRB/9
Page 34
25. If YES to any of the above, give details below.
26. Has the applicant ever been refused or had revoked any authorization
to carry on business in a jurisdiction other than Barbados?
YES NO
27. Has the applicant ever been subject to any disciplinary measures by any
regulatory body of which it is, or was at the time, a member or by any other
regulatory body in Barbados or elsewhere in relation to its business activities?
YES NO
28. So far as the applicant is aware, have the applicant's affairs been investigated
by any regulatory body in Barbados or elsewhere in relation to its business
activities other than enquiries conducted in the course of normal monitoring
and surveillance procedures?
YES NO " and
"FORM 17
DECLARATION
ON BEHALF OF ……………………………………………………………………………………….
(Name of society)
I, …………………………………………………………………………………………………………
(Name of declarant)
of ………………………………………………………………………………………………………...
(Full address of declarant)
do hereby declare as follows:
(1) That I am authorized to make this application under the Societies with Restricted
Liability Act, Cap. 318B and the Regulations and that having made all reasonable
enquiries, the information supplied to the Ministry in connection with this application
is, to the best of my knowledge and belief, accurate in material respects and does not
omit any information which might reasonably be considered relevant to the
application;
(2) that I am instructed and verily believe that the society is organized/continued in
Barbados under the Societies With Restricted Liability Act, CAP. 318B, is in good
standing and has complied fully with and intends to continue to comply with
section 41 of the Act;
(3) that the applicant will notify the Ministry of any material change in information
supplied in the application or any other manner which occurs during the period in
which the application for authorization is being considered and that thereafter it will
comply with its obligations as regards notification of changes;G/SCM/Q3/BRB/9
Page 35
DECLARATION (cont'd)
(4) that I have conducted the appropriate due diligence with respect to the company,
shareholders, officers and senior managers named in this application and that to the
best of my knowledge all such persons are fit and proper to carry on business from
Barbados.
The applicant authorizes the Ministry to make such enquiries as it may consider necessary in
connection with this application.
Declared this day of 20
Name of declarant"G/SCM/Q3/BRB/9
Page 36
FOR OFFICIAL USE
ONLY
ISB Ref.
Date received
FORM 20
RENEWAL OF A LICENCE AS AN EXEMPT SOCIETY UNDER SUBSECTION (4)
OF SECTION 40 THE SOCIETIES WITH RESTRICTED LIABIITY
ACT CAP. 318B OF THE LAWS OF BABARDOS
Notes on completion
In completing this form, some of the questions may be inapplicable. In such a case N/A may
be stated in the appropriate place along with the reason that the question is inapplicable.
Do not leave any blank spaces. Where a yes/no answer is required, please indicate response
by ticking in the relevant box.
If insufficient space has been provided for a reply at any point, please provide the information
on a SEPARATE SHEET, and refer to it in the space provided for your response. Please ensure that
any sheets are clearly marked with the name of your organization and referenced to the question.
If any further information or clarification is required, it will be requested during the
processing of the application.
Please submit as an attachment any change(s) made to the information provided on the
application form.
ATTACH THE FOLLOWING DOCUMENTS:1
 Cheque in favour of the Permanent Secretary, Ministry of Industry and International
Business;
 copy of Certification of Amendment (if applicable);
 copy of Certification of Amalgamation (if applicable);
 copy of Notice of Change of Registered Address (if applicable);
 audited Financial Statements (if applicable).
1The renewal certificate would not be issued unless all of the relevant documents accompany the
renewal form. Please use black ink and BLOCK CAPITALS or TYPESCRIPT for all answers.G/SCM/Q3/BRB/9
Page 37
PARTICULARS OF THE APPLICANT
1. Name of society:
2. Registration number:
3. Licence number:
4. Year of last renewal:
5. Was the company name amended within the last year?
YES NO
6. Was the company amalgamated within the last year?
YES NO
7. Was the address of the registered office changed in the last year?
YES NO
8. If YES to No. 7, please provide the contact details of the new address.
Address:
Telephone number: Fax number:
Electronic mail: Website:
9. Contact details of service provider/applicant:
Address:
Telephone number: Fax number:
Electronic mail: Website:
10. Statutory requirements:
Date of filing last tax return:
Date of filing last financial statements:
11. Number of management persons in Barbados:
Local:
Foreign:
12. Number of other employees in Barbados:
Local:
Foreign:
13. Total salaries paid in Barbados:G/SCM/Q3/BRB/9
Page 38
14. Other expenses in Barbados:
Travel and entertainment fees:
Government fees
Licence fees:
Work permit fees:
Customs duties:
Property taxes:
Others (specify):
Utilities (water, electricity, telephone, Internet
and other telecommunication expenses):
Accommodation expenses
Office rent:
Housing expenses:
Professional fees
Legal fees:
Accounting and audit fees:
Director's fees:
Management fees:
Other professional fees (specify):
Other administrative expenses (insurance repair
and maintenance cost and office expenses):
Capital expenditure
Purchase of land and/buildings:
Purchase of vehicles:
Purchase of other fixed assets:
Leasehold or freehold improvements:G/SCM/Q3/BRB/9
Page 39
CHAPTER 318B
SOCIETIES WITH RESTRICTED LIABILITY
ARRANGEMENT OF SECTIONS
Section
Preliminary
Citation
1. Short title.
Interpretation
2. Definitions.
3. Purposes.
4. Application.
PART I
FORMATION AND OPERATION OF SOCIEITIES
5. Organization.
6. Formalities.
7. Amendment of articles.
8. Certificate of organization.
9. Effective date.
10. Name of society.
11. Reserved name.
12. Prohibited name.
PART II
CAPACITY AND POWERS
13. Capacity and powers.
PART III
CAPITAL
14. Quotas.
15. Liability for contribution.
16. Failure to make contribution or to return distribution.
17. One or more class of quotas.G/SCM/Q3/BRB/9
Page 40
PART IV
MANAGEMENT OF SOCIEITIES
18. Managers.
19. Members.
20. Borrowing powers.
21. Distribution.
PART V
CORPORATE RECORDS
22. Registered office.
23. Notice of address.
24. Records.
25. Annual audit.
26. Other records.
27. Records form.
28. Duty of care for records.
29. Access to records.
PART VI
DISSOLUTION OF SOCIETY
30. Dissolution.
31. Intent to dissolve.
32. Articles of dissolution.
33. Continuation of actions.
34. Court dissolution.
35. Registrar's dissolution.
36. Revival.
37. Waiver of notice.
38. Service on society.
PART VII
EXEMPT SOCIETY
39. Application of Part VII.
40. Exempt society.
41. Requirements for exempt society.
42. Annual declaration.
43. Special tax provisions.G/SCM/Q3/BRB/9
Page 41
44. Exemption under Income Tax Act .
45. Withholding tax.
46. Machinery, equipment exempt from certain taxes and duties.
47. Non-application of certain enactments.
48. Guarantee of benefits.
PART VIII
MOBILITY OF SOCIETY
49. Confidentiality.
50. Registered agents.
51. Societies moving to Barbados.
52. Articles of continuance.
53. Certificate of continuance.
54. Preservation of society.
55. Society leaving Barbados.
56. Conditions applicable to society leaving Barbados.
57. Discontinuance and effect.
PART IX
ADMINISTRATION
58. Responsibility.
59. Service upon Registrar.
60. Register of societies.
61. Filed articles.
62. Striking off register.
PART X
MISCELLANEOUS
63. Investigations.
64. Regulations.
65. Companies Act .G/SCM/Q3/BRB/9
Page 42
CHAPTER 318B
SOCIETIES WITH RESTRICTED LIABILITY
An Act to Provide for the Organization of Societies with Restricted
Liability with Full Corporate Personality and for Related Matters
1995-7
[2 January 1996]
Commencement. 1996/1
Preliminary
Citation
Short title
1. This Act may be cited as the Societies with Restricted Liability Act .
Interpretation
Definitions
2. In this Act:
(a) "Articles" means:
(i) The original or restated articles of organization, articles of amendment and
articles of dissolution;
(ii) any statute, letters patent, memorandum of association, certificate of
organization, or other corporate instrument evidencing the existence of a
society;
(b) "exempt society" means of society described in Part VII;
(c) "member" means subject to section 14(5), an owner of quotas in a society;
(d) "society" means a society with restricted liability organized under section 5 and
includes an exempt society with restricted liability organized under Part VII;
(e) "Registrar" means the Registrar of Corporate Affairs and Intellectual Property.
Purposes
3.(1) The purposes of this Act are to provide for the organization of societies with restricted
liability with full corporate personality and for related matters.
(2) This Act shall be given such fair, large and liberal interpretation and construction as would
best ensure the attainment of its purposes.G/SCM/Q3/BRB/9
Page 43
Application
4. This Act applies to societies organized or registered under this Act.
PART I
FORMATION AND OPERATION OF SOCIETIES
Organization
5.(1) Subject to subsection (2), one person or more may organize a society by signing and sending
articles of organization to the Registrar together with the prescribed fee.
(2) No individual who:
(a) Is less than 18 years of age;
(b) is of unsound mind and has been so found by a tribunal in Barbados or elsewhere; or
(c) has the status of a bankrupt;
shall form or join in the formation of a society under this Act.
Formalities
6.(1) Articles of organization must follow the prescribed form and set out, in respect of the
proposed society:
(a) The proposed name of the society;
(b) the purpose of which the society is formed;
(c) the duration of the society, which may not exceed 50 years;
(d) the registered office of the society in Barbados and, in the case of an exempt society,
the name and address of its agent in Barbados;
(e) the name and address of each person who signed the articles of organization;
(f) if the right to transfer quotas of the society is to be restricted, a statement that the
right to transfer quotas is restricted and the nature of those restrictions;
(g) any restrictions on the business that the society may carry on;
(h) the classes and any maximum number of quotas the society is authorized to issue.
2. The articles may set out any provision permitted by this Act or by law permitted to be set out
in the by-laws of the society.
Amendment of articles
7. Where during the existence of a society any change is made to or occurs in, any of the
following particulars, namely:
(a) The name of the society;G/SCM/Q3/BRB/9
Page 44
(b) any statement in the articles;
(c) the time stated in the articles as the duration of the society; or
(d) any other matter affecting the articles;
the articles shall be amended and executed in the same manner as the original articles and a
copy sent to the Registrar together with the prescribed fee.
Certification of Organization
Certificate of organization
8. Upon receipt of articles of organization, the Registrar must issue a certificate of organization
in accordance with section 61; and the certificate is conclusive proof of the organization of the
society named in the certificate.
Effective date
9. A society comes into existence on the date shown in its certificate of organization.
Name
Name of society
10. The words "Society with Restricted Liability" or the abbreviation "SRL" shall be the last
words of the name of every society but a society may be legally designated by either the full or the
abbreviated form.
Reserved name
11. A society must not be organized with or have a name:
(a) That is prohibited or refused under section 12 or under any other enactment;
(b) that is reserved for another society or intended society under this section or any other
enactment.
Prohibited name
12. No society shall have a name that is the same as, or similar to, the name of another society,
corporation, association or partnership or that is, in the opinion of the Registrar, likely to confuse or
mislead the public.G/SCM/Q3/BRB/9
Page 45
PART II
CAPACITY AND POWERS
Capacity and powers
13.(1) A society has the capacity, and, subject to this Act, the rights, powers and privileges of an
individual.
(2) A society has the power to carry on its business, conduct its affairs and exercise its powers in
any jurisdiction outside Barbados to the extent that the laws of Barbados and of that jurisdiction
permit.
(3) It is not necessary for a by-law to be passed to confer any particular power on a society or its
directors or members.
(4) This section does not authorize any society to carry on any business or activity in breach of:
(a) Any enactment prohibiting or restricting the carrying on of the activity; or
(b) any provision requiring any permission or licence for the carrying on of the business
or activity.
PART III
CAPITAL
Quotas
14.(1) Quotas in a society are personal property, and a quota is transferable in the manner provided
in the by-laws.
(2) By-laws may prohibit the transfer of quotas.
(3) A member of a society may acquire quotas in the society by making contributions to the
capital of the society:
(a) In money; or
(b) in property that is the fair equivalent of the money that the society would have
received if the contribution had been made for money.
(4) For the purposes of this Act:
(a) Services to a society shall not be accepted in lieu of money or property as a
contribution to the capital of a society; and
(b) property does not include a promissory note or a promise to pay.
(5) A member may transfer his quotas in the manner provided in the by-laws, but the transferee
shall not become a member of, or participate in the management of the business and affairs of the
society unless all of the other members of the society unanimously consent in writing to the transfer.
(6) A transferee referred to in subsection (5) who does not become a member of the society is
only entitled to receive dividends or other compensation by way of income and the return of
contributions to which the transferor would, but for the transfer, have been entitled.G/SCM/Q3/BRB/9
Page 46
Liability for contribution
15. Every member of a society shall:
(a) Contribute to the capital of the society the amount specified in the by-laws and at the
times and on the conditions set out therein; and
(b) return to the society the amount of any distribution made in contravention of this Act.
Failure to make contribution or to return distribution
16. Every member of a society is liable:
(a) To make the contributions referred to in sections 15(a); and
(b) to return the distribution referred to in section 15(b);
and the by-laws of a society may provide that the quotas of any member who fails to make a
contribution that he is required to make or to return a distribution received in contravention of
this Act shall be available to the society to satisfy the member's liability.
One or more class of quotas
17.(1) When a society has only one class of quotas, the rights of the members are equal in all
respects, and include:
(a) The right to vote at any meeting of members;
(b) the right to receive any distribution by the society;
(c) the right to receive the remaining property of the society on dissolution.
(2) The articles of a society may provide for more than one class of quotas; and, if they so
provide:
(a) The rights, privileges, restrictions and conditions attaching to the quotas of each class
must be set out in the articles; and
(b) the rights set out in the subsection (1) must be attached to at least one class of quotas,
but all of those rights need not be attached to the same class of quotas.G/SCM/Q3/BRB/9
Page 47
PART IV
MANAGEMENT OF SOCIETIES
The Managers and Members
Managers
18.(1) Where the by-laws of a society so provide the members thereof may appoint one or more
managers in whom the management of the society shall vest.
(2) Every member shall be elected annually by the members in the manner provided in the
by-laws of the society and shall hold the offices and have the responsibilities accorded thereto by the
members and set out in the by-laws.
(3) Within 15 days after a change is made among its managers, a society must send to the
Registrar a notice in the prescribed form setting out the change; and the Registrar must file the notice.
(4) Any interested person, or the Registrar, may apply to the court for an order to require a
society to comply with subsection (3); and the court may so order and make any further order it
thinks fit.
Members
19. A society with restricted liability shall have at least two members.
Borrowing Powers of Societies
Borrowing powers
20.(1) Unless the by-laws of the society otherwise provide, one manager or more of the society,
without authorization of the members, or, where there are no managers, any two members with
authorization of the other members, may:
(a) Borrow money upon the credit of the society;
(b) issue, re-issue, sell or pledge debentures of the society;
(c) give a guarantee on behalf of the society to secure performance of an obligation of
any person; and
(d) mortgage, charge, pledge, all or any property of the society that is owned or
subsequently acquired by the society or otherwise create a security interest in any
such property.
(2) For the purposes of this Act "security interest" means any interest in or charge upon any
property of a society, by way of mortgage, bond, lien, pledge or other means, that is created or taken
to secure the payment of an obligation of the society.
Distribution
21.(1) Subject to subsection (2), a society may distribute its property to members of the society in
accordance with the provisions of the by-laws.
(2) A society shall not distribute its property to its members if there are reasonable grounds for
believing that:G/SCM/Q3/BRB/9
Page 48
(a) The society is unable, or would, after that distribution, be unable to pay its liabilities
as they become due; or
(b) the realizable value of the society's assets would after that payment, be less than the
aggregate of its liabilities.
(3) Subject to the by-laws, a distribution shall be made in money only.
PART V
CORPORATE RECORDS
Registered Office of Society
Registered office
22.(1) A society must at all times have a registered office in Barbados.
(2) The managers of the society may change the address of the registered office.
Notice of address
23.(1) At the time of sending articles of organization, the members must send to the Registrar, in the
prescribed form, notice of the address of the registered office of the society; and the Registrar must
file the notice.
(2) A society shall within 15 days of any change of the address of its registered office, send to the
Registrar a notice in the prescribed form of the change, which the Registrar must file.
Registers and Records
Records
24.(1) A society shall prepare and maintain at its registered office records containing:
(a) The articles and the by-laws, and all amendments thereto; and
(b) minutes of meetings and resolutions of members.
(2) A society shall maintain a register of members showing:
(a) The name and the latest known address of each person who is a member;
(b) a statement of each member's contribution to the capital of the society; and
(c) the date on which each person was entered on the register as a member, and the date
on which any person ceased to be a member.G/SCM/Q3/BRB/9
Page 49
Annual Audit
Annual audit
25.(1) The annual financial statements of a society whose gross revenue or whose assets exceed
$1,000,000 shall be audited at least once in every financial year by an auditor appointed by the
society.
(2) The auditor appointed pursuant to subsection (1) must be a member of the Institute of
Chartered Accountants of Barbados and must hold a practising certificate of the Institute.
(3) It is the duty of the auditor appointed pursuant to subsection (1) to submit a report to the
members of the society.
(4) A copy of the financial statements referred to in this section shall be sent to the Registrar
together with the prescribed fee, within 21 days before each annual meeting of the members and the
Registrar shall file the copy.
Accounts, Minutes and other Records
Other records
26.(1) In addition to the records described in section 24, a society shall prepare and maintain
adequate accounting records and records containing minutes of meetings and resolutions of the
managers, or as the case may be, the members.
(2) When any accounting records of a society are kept at a place outside Barbados, accounting
records that are adequate to enable the managers to ascertain the financial position of the society with
reasonable accuracy on a quarterly basis must be kept by the society at the registered office of the
society or at some other place in Barbados designated by the managers, or as the case may be, the
members.
Form of Records
Records form
27. All records required by this Act to be prepared and maintained:
(a) May be in a bound or loose-leaf form or in a photographic film form; or
(b) may be entered or recorded:
(i) By any system of mechanical or electronic data processing; or
(ii) by any other information storage device;
that is capable of reproducing any required information in intelligible written form within a
reasonable time.G/SCM/Q3/BRB/9
Page 50
Care of Records
Duty of care for records
28. A society and its agents shall take reasonable precautions:
(a) To prevent loss or destruction of;
(b) to prevent falsification of entries in; and
(c) to facilitate detection and correction of inaccuracies in;
the records required by this Act to be prepared and maintained in respect of the society.
Access to Records
Access to records
29.(1) The managers and members of a society, and their agents and legal representatives, may,
during the usual business hours of the society, examine the records of the society referred to in
section 24 and may take extracts therefrom free of charge.
(2) A member of a society is, upon request and without charge, entitled to one copy of the articles
and by-laws of the society and to one copy of any amendments to any of those documents.
(3) The creditors of a society and their agents and legal representatives may, during the usual
business hours of the society, with the consent, in writing, of the managers, or as the case may be, any
two members, and upon payment of a reasonable fee, examine the records referred to in paragraph (a)
of subsection (1) of section 24 and subsection (2) of that section.
(4) Notwithstanding subsection (3), no person shall have access to:
(a) Any information that the society reasonably believes to be a trade secret;
(b) any information the society believes the disclosure of which is likely to be injurious
to the society, its business or its members; and
(c) any information the society is required by law or by an agreement with a third party
not to disclose.
(5) Creditors of a society may make copies of records referred to in subsection (3) and may take
extracts therefrom.
(6) A member of a society is, upon request and on payment of the charge fixed by the society,
entitled to obtain from the society for any purpose reasonably related to the member's interest as a
member, the following:
(a) Information regarding the status of the business and financial condition of the society;
(b) a list of all members entitled to receive notice of a meeting and the latest business,
residence or mailing address of each member and the date on which each member
became a member of the society;G/SCM/Q3/BRB/9
Page 51
(c) a copy of the articles and by-laws of the society and all amendments to the articles
and by-laws;
(d) information regarding the amount of cash and a description and statement of the
agreed value of any other property contributed by each member and which each
member has agreed to contribute but has not yet contributed; and
(e) any other information regarding the affairs of the society as may be just and
reasonable.
PART VI
DISSOLUTION OF SOCIETY
Dissolution
30. A society is dissolved and its affairs shall be wound up upon the first of the following to
occur:
(a) At the end of the period fixed for the duration of the society;
(b) by unanimous resolution of all the members;
(c) upon:
(i) The death, retirement, resignation, expulsion, bankruptcy or insolvency of a
member;
(ii) the dissolution of a member; or
(iii) the occurrence of any other event which terminates the membership of a
member;
unless the articles or by-laws otherwise provide, or, in the absence of any such
provision, the remaining members by unanimous resolution otherwise resolve;
(d) upon the occurrence of any event that makes it unlawful to carry on the business of
the society;
(e) upon the order of a court under section 34.
Intent to dissolve
31.(1) At least one year before the period referred to in section 30(a) the society shall file a
statement of intent to dissolve with the Registrar in the prescribed form.
(2) Upon receipt of a statement of intent to dissolve the Registrar shall issue a certificate of intent
to dissolve.
(3) When a certificate of intent to dissolve is issued by the Registrar, the society shall cease to
carry on business except to the extent necessary for its dissolution; but its existence continues until
the Registrar issues a certificate of dissolution of the society.
(4) After the issue of a certificate of intent to dissolve it, the society shall:G/SCM/Q3/BRB/9
Page 52
(a) Immediately cause notice of its intent to dissolve to be sent to each known creditor of
the society;
(b) forthwith publish in the Gazette and in a newspaper published or circulated in
Barbados, its intent to dissolve, and take reasonable steps to give notice of its intent in
every jurisdiction in which the society is registered or has a place of business at the
time it sent the statement of intent to dissolve to the Registrar;
(c) proceed to collect its property, dispose of properties that are not to be distributed in
kind to its members, to discharge all obligations, and to do all other acts required to
liquidate its business; and
(d) after giving the notice required under paragraphs (a) and (b) and adequately providing
for the payment or discharge of all its obligations, distribute its remaining property,
either in money or in kind, among its members according to their respective rights.
Articles of dissolution
32.(1) When all obligations of the society have been discharged, or adequate provision has been
made therefore, and all of the remaining property and assets of the society have been distributed to the
members, articles of dissolution shall be filed with the Registrar.
(2) Articles of dissolution shall set out the following:
(a) The name of the society with restricted liability;
(b) the fact that a statement of intent to dissolve the society has been filed with the
Registrar and the date on which such statement was filed;
(c) the fact that all obligations have been discharged, or that adequate provision has been
made therefore;
(d) the fact that all the remaining property and assets have been distributed among its
members in accordance with their respective quotas;
(e) the fact that there are no suits pending against the society in any court or that
adequate provision has been made for the satisfaction of any judgement, order, or
decree which may be entered against it in any pending suit.
Continuation of action
33.(1) In this section, "member" includes the legal representatives of a member.
(2) Notwithstanding the dissolution of a society under this Act:
(a) A civil, criminal or administrative action or proceeding commenced by or against the
society before its dissolution may be continued as if the society had not been
dissolved;
(b) a civil, criminal or administrative action or proceeding may be brought against the
society within two years after its dissolution as if the society had not been dissolved;
andG/SCM/Q3/BRB/9
Page 53
(c) any property that would have been available to satisfy any judgement or order if the
society has not been dissolved remains available to satisfy the judgement or order.
Court dissolution
34. The Registrar, a member or any interested party may apply to the court for an order dissolving
a society, if the society:
(a) Has procured its articles of organization through fraud;
(b) has exceeded the authority conferred upon it by law;
(c) has procured any certificate under this Act by misrepresentation;
(d) has conducted its business in an oppressive, fraudulent or prejudicial manner;
(e) has committed any other act contrary to the public policy of Barbados.
Registrar's dissolution
35.(1) Subject to subsection (2), the Registrar may dissolve a society where the society:
(a) Fails to file it annual financial statements or pay the prescribed fee for filing the
annual financial statements within the time specified by this Act;
(b) fails, in the case of an exempt society, for 60 days to appoint a registered agent in
Barbados; or
(c) fails, for 60 days after change of its registered office or in the case of an exempt
society, the registered agent of the exempt society, to file with the Registrar a
statement of such change.
(2) No society shall be dissolved under subsection (1) unless the Registrar has given the society
not less than a 90 days' notice of the proposed dissolution, stating the reasons therefor and addressed
to its registered office or to its principal place of business, and the society has failed prior to such
dissolution to correct the omission.
(3) Where the Registrar dissolves a society under subsection (2), he shall issue a certificate to that
effect and mail the certificate to the society as its registered office or its principal place of business.
Revival
36.(1) When a society has been dissolved any interested person may apply to the Registrar to have
the society revived.
(2) Where the Registrar approves the application for the revival of the society, articles of revival
in the prescribed form may be sent to the Registrar, who must thereupon issue a certificate of revival
in the prescribed form.
(3) A society is revived on the date shown in its certificate of revival; and thereafter the society,
subject to such reasonable terms as may be imposed by the Registrar, and to any rights acquired by
any person after the dissolution of the society, has all the rights and privileges and is liable for the
obligations, that it would have had and for which it would have been liable had it not been dissolved.G/SCM/Q3/BRB/9
Page 54
(4) A society that has been dissolved pursuant to section 30(a) may not be revived.
Waiver of notice
37. Where a notice or document is required to be sent pursuant to this Act, the sending of the
notice or document may be waived, or the time for the notice or document may be waived or abridged
at any time with the consent in writing of the person entitled to the notice or document.
Service on society
38. A notice or document may be served on a society:
(a) By leaving it at, or sending it by telex, facsimile message or prepaid post or cable
addressed to the registered office of the society; or
(b) by personally serving any manager, member, officer, receiver, receiver manager or
liquidator of the society.
PART VII
EXEMPT SOCIETY
Application of Part VII
39. This Part applies to exempt societies only, unless otherwise specifically stated in this Part.
Exempt society
40.(1) A society that complies with all of the requirements of section 41 may apply to the Minister in
the form prescribed for a licence to function as an exempt society with restricted liability.
(2) Where an application is approved by the Minister he may issue a licence subject to such
conditions as he may specify in the licence, and upon payment of the prescribed fee.
(3) No exempt society granted a licence under this Act shall engage in any business that is
prohibited by this Act.
(4) Unless cancelled under subsection (5), a licence remains in force until 31 December of the
year in which it was issued, and may be renewed before the first day of January in each year on
payment of the prescribed fee.
(5) Subject to subsection (6), the Minister may by notice in writing cancel or refuse to renew a
licence where an exempt society contravenes subsection (3) or fails to comply with a condition of its
licence, or otherwise fails to comply with any requirement of this Act or any regulations made
thereunder.
(6) Where the Minister intends not to renew, or to cancel the licence of an exempt society, he
shall give to that society notice in writing of his intention and the reasons therefor.
(7) A notice given under subsection (6) shall state that the exempt society may within 21 days of
service of the notice make representation in writing to the Minister as to why the Minister should not
take the action intended.
(8) A person who is aggrieved by the cancellation of a licence or the failure to renew a licence
under subsection (5), may within 30 days after it is notified of the Minister's intention pursuant toG/SCM/Q3/BRB/9
Page 55
subsection (6), apply to the High Court for an order requiring the Minister to revoke the cancellation
of its licence or to renew its licence, as the case may be, and the court may make such order as it
thinks fit in the circumstances.
Requirements for exempt society
41.(1) Subject to subsection (2), an exempt society may not:
(a) Acquire or hold land in Barbados, other than land required for its business held by
way of lease or a tenancy agreement for a term not exceeding the period fixed in the
articles for the duration of the society or such shorter period as circumstances require;
(b) transact business with any person resident in the Caricom region;
Cap. 324A (c) take deposits from any person in contravention of the Financial Intermediaries
Regulatory Act .
(2) An exempt society may:
(a) Acquire such goods and services in Barbados as it requires for the conduct of its
business; and
(b) transact in Barbados such business as may be prescribed with:
(i) Another exempt society;
Cap. 77 (ii) an international business company licensed under the International Business
Companies Act ;
Cap. 325 (iii) an offshore bank licensed under the Offshore Banking Act ; and
Cap. 308A (iv) an exempt insurance company licensed under the Exempt Insurance Act .
(3) Nothing in this Act shall be construed as prohibiting an exempt society from effecting or
concluding contracts or arrangements with persons in Barbados for the supply of goods and services
to the society that are necessary for the purpose of enabling the society to carry on its business with
persons outside the Caricom region.
(4) For the purposes of this section "Caricom region" means the region within the jurisdictional
areas of the member States of the Caribbean Community established by the Treaty signed on
4 July 1973 at Chaguaramas.
Annual declaration
42. Every exempt society shall send to the Minister an annual declaration signed by at least one
member of the exempt society certifying that since its organization or last annual declaration, as the
case may be, the exempt society has complied with section 41.
Special tax provisions. Cap. 73
43.(1) Subject to this section and section 44, in lieu of tax at the rate specified under the Income Tax
Act, there shall be levied and paid to the Commissioner of Inland Revenue in respect of every income
year of a society, a tax on the profits and gains of the society at the following rates:
(a) 2.5 per cent on all profits and gains up to $10,000,000;G/SCM/Q3/BRB/9
Page 56
(b) 2 per cent on all profits and gains exceeding $10,000,000 but not exceeding
$20,000,000;
(c) 1.5 per cent on all profits and gains exceeding $20,000,000 but not exceeding
$30,000,000;
(d) 1 per cent on all profits and gains in excess of $30,000,000.
(2) A society may elect to take a credit in respect of taxes paid to a country other than Barbados
provided that such an election does not reduce the tax payable in Barbados to a rate less than one per
cent of the profits and gains of the society in any income year.
(3) Notwithstanding subsection (1), a society may apply to the Minister for the authorization to
pay tax at a rate higher than that fixed by subsection (1) and payable by the society in respect of the
profits and gains of the society as set out in paragraph (a), (b), (c) or (d) of that subsection, as the case
may be.
(4) The Minister may by order authorize the society to pay the higher rate of tax referred to in
subsection (3).
(5) Where during any income year a society employs such number of persons in Barbados as the
Minister may by order prescribe, the society may pay income tax at such lower rate as the Minister
may by order prescribe in respect of the profits and gains of the society as set out in paragraph (a), (b),
(c) or (d) as the case may be, of subsection (1).
(6) An order under this section shall be subject to negative resolution.
Exemption under Income Tax Act . Cap. 73
44. A society shall not be liable to pay any tax under the Income Tax Act , except as is provided by
section 43 in respect of an income year nor shall it be liable under this or any other enactment to pay
any other direct tax on its profits and gains in respect of that income year.
Withholding tax. Cap. 73
45. Notwithstanding the Income Tax Act , an exempt society need not withhold any portion of the
distribution, interest or returns or other income paid or deemed to be paid by an exempt society to a
person who is not resident in Barbados or who, if so resident, carries on the business of an exempt
society or is a body referred to in paragraph (b)(ii), (iii) or (iv) of section (2) of section 41.
Machinery, equipment exempt from certain taxes and duties
46.(1) An exempt society may import or purchase out of bond free of customs duty, consumption
tax,ad valorem stamp duty and other like duties, taxes and imposts, such plant, machinery, equipment
(excluding motor vehicles), fixtures, appliances, apparatus, tools and spare parts, and such raw
materials, goods, components and articles, as is necessary for the society to carry on its business.
(2) The goods referred to in subsection (1) may only be imported or purchased out of bond free of
the duties, taxes and imposts referred to in that subsection where the Manager of the exempt society
certifies to the Comptroller of Customs, in this Act referred to as the "Comptroller", that the goods are
imported or purchased for use exclusively by the society.G/SCM/Q3/BRB/9
Page 57
(3) When an exempt society imports or purchases out of bond under this section any materials,
goods or articles free of any duty, tax or impost, those materials, goods or articles shall not be sold or
disposed of in Barbados otherwise than in the ordinary course of the company's international trade
and commerce, and international manufacturing, until after the expiration of five years from the date
of importation, unless:
(a) The sale or disposition is to another exempt society or to an international business
company, an offshore bank or an exempt insurance company; or
(b) the amount of duty, tax or other impost that would have been payable had
subsection (1) or (2) not applied is first paid to the Comptroller of Customs and a
certificate of such payment is issued by the Comptroller.
(4) Nothing imported or purchased free of any duty, tax or impost under this section by an
international business company shall, without the prior written approval of the Minister, be used for
any purpose other than the purpose stated for customs when it was so imported or purchased unless it
is subsequently acquired by another person pursuant to subsection (3).
(5) A person who contravenes any provision of this section commits an offence and is liable on
summary conviction to a fine not exceeding $10,000 or imprisonment for a term of two years, or both.
Non-application of certain enactments
47.(1) Subsection (4) of section 25 and paragraph (a) of section 35(1) do not apply to exempt
societies.
Cap. 71
(2) The Exchange Control Act does not apply to exempt societies.
Cap. 91
(3) An exempt society is exempt from ad valorem stamp duty except in respect of real estate
situated in Barbados and shall pay a fixed duty as specified in the Schedule to the Stamp Duty Act .
Guarantee of benefits
48.(1) The Minister may by agreement with an exempt society give assurances or guarantees to the
society that all or any of the benefits and exemptions contained in this Act will apply to that society
for a period of 30 years.
(2) The agreement referred to in subsection (1) is subject to negative resolution.
Confidentiality
49.(1) No person shall disclose any information relating to any application of a prospective exempt
society or to the affairs of an exempt society, other than so far as such information forms part of the
public record in the possession of the Registrar, except when authorized by the prospective exempt
society or the exempt society to do so or when lawfully required to do so by a court of competent
jurisdiction.
(2) A person who contravenes this section commits an offence and is liable on summary
conviction to a fine of $10,000 or imprisonment for a term of two years, or both.G/SCM/Q3/BRB/9
Page 58
Cap. 73
(3) This section does not apply to any person carrying out any duty imposed on him by the
Income Tax Act or otherwise acting in pursuance of any international agreement to which Barbados is
a party.
(4) Subsections (3) and (5) of section 29 do not apply to this part.
Registered agent
50.(1) An exempt society shall at all times maintain in Barbados a registered agent for the purpose
of receiving service of process in all suits and proceedings by or against the society in Barbados, and
of receiving all lawful notices.
(2) A society must have a registered office identical with the business office of the society's
agent.
PART VIII
MOBILITY OF SOCIETY
Societies moving to Barbados
51.(1) An entity:
(a) That is organized in a jurisdiction other than Barbados; and
(b) that has legal characteristics that would, if it were in Barbados, enable it to be
organized as a society under this Act;
in this Act called an "overseas society" may, if not prohibited under the laws of that other
jurisdiction, apply to the Registrar for a certificate of continuance under this Act.
(2) An application under subsection (1) must be made by articles of continuance in the prescribed
form.
(3) Articles of continuance may without, so stating in the articles, effect any amendment to the
organizational instruments of the overseas society that applies for continuance under this section if the
amendment:
(a) Is authorized in accordance with the law applicable to the overseas society before
continuance under this Act; and
(b) is an amendment that a society under this Act is entitled to make.
Articles of continuance
52.(1) Articles of continuance shall be written in the English language, but if they are written in a
language other than English, articles of continuance shall be accompanied by a certified translation in
the English language.
(2) Articles of continuance shall:
(a) Be signed by all of the members and managers of the society;G/SCM/Q3/BRB/9
Page 59
(b) state the name of the overseas society and the name under which it is being
continued;
(c) state the jurisdiction under which it is organized;
(d) state the date on which it was organized; and
(e) state such other provisions as are required for articles of organization under this Act.
Certificate of continuance
53.(1) Upon receipt of articles of continuance, the Registrar may issue a certificate of continuance in
accordance with section 61.
(2) On the date shown in the certificate of continuance:
(a) The overseas society becomes a society to which this Act applies as if the society had
been organized under this Act;
(b) the articles of continuance become the articles of incorporation of the continued
society; and
(c) the certificate of continuance is the certificate of organization of the continued
society.
Preservation of society
54.(1) When an overseas society is continued as a society under this Act:
(a) The property of the overseas society becomes the property of the society;
(b) the society continues to be liable for the obligations of the overseas society;
(c) an existing cause of action, claim or liability to prosecute is unaffected;
(d) a civil, criminal or administrative action or proceeding pending by or against the
external society may be continued by or against the society; and
(e) a conviction against, or ruling, order or judgement against or in favour of, the external
society may be enforced against the society.
(2) Any contribution to the capital of an overseas society made before the overseas society was
continued under this Act is presumed to have been made in compliance with this Act and with the
provisions of the articles of continuance; and continuance under this Act does not deprive a member
of any right or privilege that he claims pursuant to his contribution to the society, nor does it relieve
him of any liability to the society.
Society leaving Barbados
55. Subject to section 57 a society may:
(a) If it is authorized by unanimous resolution of its members; andG/SCM/Q3/BRB/9
Page 60
(b) if it is established to the satisfaction of the Registrar that the society's proposed
continuance in another jurisdiction will not adversely affect the society's creditors or
members;
apply to the appropriate official or public body of the other jurisdiction to be continued as a
body corporate in the other jurisdiction as if it has been organized under the laws of the other
jurisdiction.
Conditions applicable to society leaving Barbados
56. A society may not apply for continuance in another jurisdiction, nor may it be continued
under the laws of another jurisdiction, as a body incorporated in that other jurisdiction pursuant to
section 55 unless the laws of that other jurisdiction provide that:
(a) The property of the society continues to be the property of the body corporate;
(b) the body corporate continues to be liable for the obligations of the society;
(c) any existing cause of action, claim or liability to prosecute is unaffected;
(d) a civil, criminal or administrative action or proceeding pending by or against the
society can be continued to be prosecuted by or against the body corporate; and
(e) a conviction against, or ruling, order or judgement in favour of or against, the society
can be enforced by or against the body corporate.
Discontinuance and effect
57.(1) Upon receipt of a notice satisfactory to him that a society that has made an application under
section 55 has been continued as a corporation under the laws of another jurisdiction, the Registrar
must file the notice and issue a certificate of discontinuance in accordance with this Act.
(2) After a certificate of discontinuance is issued under subsection (1) in respect of a society that
is continued as a corporation under the laws of another jurisdiction, the society's name shall be
removed from the register of societies; but such removal does not affect section 56.
(3) For the purposes of this part, "body corporate" includes a body organized in another
jurisdiction under legislation similar to this Act; and "incorporate" and "corporation" shall be
construed accordingly.
PART IX
ADMINISTRATION
Registrar
Responsibility
58.(1) The Registrar is, under the general supervision of the Minister, responsible for the
administration of this Act.
(2) A seal may be prescribed by the Minister for use by the Registrar in the performance of his
duties.G/SCM/Q3/BRB/9
Page 61
Service upon Registrar
59. A document may be served upon the Registrar by leaving it at the office of the Registrar or by
sending it by telex, facsimile or by prepaid past or cable address to the Registrar at this office.
Register of Societies
Register of societies
60. The Registrar shall maintain a register of societies in which shall be kept the name of every
society:
(a) That is organized under this Act;
(b) that is continued as a society under this Act;
(c) that is restored to the register pursuant to this Act;
(d) that has been revived under this Act; and
(e) that has not subsequently been struck off the register.
Filed articles
61.(1) In this section, "statement" means a statement of intent to dissolve a society.
(2) Where this Act requires that articles or a statement relating to a society be sent to the
Registrar, unless otherwise specifically provided:
(a) Two copies, in this section called "duplicate originals", of the articles or the statement
must be signed by the managers, or, as the case may be, by any two members with
authorization of the other members; and
(b) upon receiving duplicate originals of any articles or statement that conform to law,
and any other required documents and the prescribed fees, the Registrar must:
(i) Endorse on each of the duplicate originals the word "registered" and the date
of the registration;
(ii) issue in duplicate the appropriate certificate and attach to each certificate one
of the duplicate originals of the articles or statement;
(iii) file a copy of the certificate and attached articles or statement;
(iv) send to the society or its representative the original certificate and attached
articles or statement; and
(v) publish in the Gazette notice of the issue of the certificate.
(3) A certificate referred to in subsection (2) and issued by the Registrar may be dated as of the
day he receives the articles, statement or court order pursuant to which the certificate is issued, or as
of any later day specified by the court or person who signed the articles or statement.G/SCM/Q3/BRB/9
Page 62
(4) A signature required on a certificate referred to in subsection (2) may be printed or otherwise
mechanically reproduced on the certificate.
Removal from Register
Striking off register
62.(1) The Registrar may strike off the register a society if:
(a) The society fails to send any return, notice, document or prescribed fee to the
Registrar as required pursuant to this Act;
(b) the society is dissolved;
(c) the society is amalgamated with one or more societies or bodies corporate; or
(d) the society does not carry out an undertaking to change its name.
(2) Where the Registrar is of the opinion that a society is in default under paragraph (a) or (d) of
subsection (1), he must send it a notice advising it of the default and stating that, unless the default is
remedied within 30 days after the date of the notice, the society will be struck off the register.
(3) After the expiration of the time mentioned in the notice, the Registrar may strike the society
off the register and publish a notice thereof in the Gazette .
(4) Where a society is struck off the register, the Registrar may, upon receipt of an application in
the prescribed form and upon payment of the prescribed fee, restore it to the register and issue a
certificate in a form adapted to the circumstances.
PART X
MISCELLANEOUS
Investigation
63.(1) The Minister may at any time appoint any person whom he thinks fit as an inspector, in this
Act referred to as the "inspector", to investigate the affairs of a society and to report on them in such
manner as the Minister may direct.
(2) The expenses incurred in carrying out such investigations shall be borne by the society.
(3) Every member or manager of the society shall produce to the inspector such books or
documents as the inspector may require for the purposes of his investigation; and without prejudice to
subsection (4) a Judge in Chambers may on the application of the inspector by order compel the
production of any such book or document.
(4) Any member or manager of the society who, in the course of an investigation of the affairs of
the society:
(a) Refuses to produce any book or document required by the inspector to be produced;
or
(b) refuses to answer any question relating to the affairs of the society;
is liable on summary conviction to a fine of $5,000.G/SCM/Q3/BRB/9
Page 63
(5) The inspector may take evidence upon oath in investigating the affairs of the society and for
that purpose may administer an oath.
(6) Upon the completion of any investigation in accordance with this section, the inspector shall
submit a report to the Minister and shall immediately thereafter deliver a copy of such report to the
registered office of the society.
(7) Where the Minister considers, after examining the report referred to in subsection (6), that the
society or any of its members or managers have knowingly and wilfully done anything in
contravention of this Act, he may direct the Registrar to petition the Court for the dissolution of the
society.
(8) A copy of the petition referred to in subsection (7) shall be served at the registered office of
the society at least seven clear days before the day set by the Court for the hearing thereof.
(9) Where the Court, on hearing a petition, is satisfied that the society, or any of its members or
managers, have done anything in contravention of this Act the Court may:
(a) Make an order for the dissolution for the society; or
(b) impose a fine of $5,000 on any member or manager who has knowingly and wilfully
authorized or permitted any such contravention.
Cap. 142
(10) Any proceedings in connection with the holding of an investigation by the inspector in
pursuance of this section shall, for the purpose of the Perjury Act , be deemed to be judicial
proceedings.
Regulations
64.(1) The Minister may make regulations:
(a) For giving effect to this Act; and
(b) prescribing anything that is required or authorized by this Act to be prescribed.
Cap. 308
(2) Notwithstanding subsection (1), regulations made under the Companies Act , to the extent that
they are not inconsistent with the express provisions of this Act or the regulations made hereunder,
apply to this Act with the necessary adaptations and modifications as circumstances requires, and
shall be used for giving effect to this Act.
Companies Act. Cap. 308
65. The Companies Act to the extent that it is not inconsistent with the express provisions of this
Act, applies to this Act with the necessary adaptations and modifications as circumstances requires.G/SCM/Q3/BRB/9
Page 64
CHAPTER 71A
FISCAL INCENTIVES
ARRANGEMENT OF SECTIONS
Section
PART I
Preliminary
1. Short title.
2. Interpretation.
3. Computation of local value added.
4. Determination of value of content of component.
5. Non-residents.
6. Declaration of approved product.
7. Declaration of approved enterprise.
8. Applications for approval.
9. Objections to proposals to approve a product or enterprise.
10. Minister to have absolute discretion in respect of approval.
11. Classification of enterprises.
PART II
Provisions relating to Income Tax
12. Exemption from income tax.
13. Benefits for enterprise engaged in highly capital intensive industry.
14. Depreciation allowance.
15. Deduction for capital expenditure.
16. Set-off.
17. Losses carried forward for purposes of set-off.
18. Dividends.
19. Interest.
PART III
Provisions relating to Interim Trader's Licence Fees
and Trade Tax
20. Relief from trader's licence fees and trade tax.G/SCM/Q3/BRB/9
Page 65
PART IV
Provisions Relating to Customs duty
21. Licence to import.
22. Record and inspection of articles.
23. Restriction of disposal of articles.
PART V
Miscellaneous
24. Delay of construction or manufacture.
25. Revocation of order.
26. Restriction on use of factory.
27. Appraisal of performance of enterprise.
28. Transfer of status of approved enterprise.
29. Regulations.
30. Publication in Official Gazette .
31. Savings.
_______________
FIRST SCHEDULE
_______________
SECOND SCHEDULE
_______________
THIRD SCHEDULEG/SCM/Q3/BRB/9
Page 66
CHAPTER 71A
FISCAL INCENTIVES
An Act to Implement the Agreement to which Barbados is a Party,
Between Certain Countries in the Caribbean Region for the
Harmonization of Fiscal Incentives to Industry
1974-12
1982-38
[1 April 1974]
Commencement. S.I. 1974. No. 83
PART 1
Preliminary
Short title
1. This Act may be cited as the Fiscal Incentives Act .
Interpretation
2. For the purposes of this Act:
"approved enterprise" means an enterprise approved by the Minister under section 7 for the
purpose of conferring a benefit under this Act;
First Schedule
"approved product" means a product of manufacture approved by the Minister under section 6
for manufacture by an approved enterprise, but does not include a product specified in the First
Schedule or a product of an established industry;
"benefit" means any relief granted to an approved enterprise under this Act;
Second Schedule
"Common Market" and "Member State" mean, until 1 May 1974, all those States referred to
in the Second Schedule, and thereafter such of those States as are parties to the Treaty establishing the
Caribbean Common Market;
"Commissioner" means the Commissioner of Inland Revenue;
"Comptroller" means the Comptroller of Customs;
"date of construction" means the date declared in an order under section 7;
"date of production" means the date declared in an order under section 7;
"Enclave Enterprise" means an enterprise producing exclusively for export to countries
outside the Common Market;
"enterprise" means any company registered in Barbados;G/SCM/Q3/BRB/9
Page 67
"established industry" means an industry which supplies more than 90 per cent of the
domestic market for any product;
"factory" means any premises in which, or within the close or curtilage or precincts of which,
or any place where persons are or will be employed in any process for or incidental to any of the
following purposes:
(a) The production of an approved product;
(b) the adapting for sale of any approved product;
being premises or any place in which, or within the close or curtilage or precincts of which,
the work is or will be carried on by way of trade or for purposes of gain and to or over which
the approved enterprise which employs or will employ the persons employed or to be
employed therein has access or control;
"Group I Enterprise" means an enterprise in respect of which the local value added is at least
50 per cent of the amount realized from the sales of an approved product;
"Group II Enterprise" means an enterprise in respect of which the local value added is at least
25 per cent but less than 50 per cent of the amount realized from the sales of an approved product;
"Group III Enterprise" means an enterprise in respect of which the local value added is at least
10 per cent but less than 25 per cent of the amount realized from the sales of an approved product;
"industry" means a manufacturing or processing industry, and includes deep sea fishing and
shrimping where they form part of an integrated processing operation, but does not include agriculture
or tourism;
"local value added" means the amount (expressed as a percentage of the total sales of an
approved product) by which the amount realized from the sales of an approved product over a
continuous period of 12 months exceeds the aggregate amount of the following:
(a) The value of imported raw materials, components and parts of components, fuels and
services;
(b) wages and salaries paid during the period to persons who are not nationals of the
member States;
(c) profits distributed and remitted directly or indirectly to persons who are not resident
in a member State;
(d) interest, management charges and other income payments or any of them, accruing
directly or indirectly to persons not resident in a member State, other than a branch or
agency of banks not resident in a member State;
(e) depreciation of imports of plant, machinery and equipment;
"Minister" means the Minister responsible for Industry;
"national" means a person who is a citizen of a member State, and includes a person whose
connection with such a State entitles him to be regarded as belonging to, or being a native or resident
of the State for the purposes of the law relating to immigration for the time being in force;G/SCM/Q3/BRB/9
Page 68
"sale" means the proceeds of sale ex-factory of an approved product.
Computation of local value added
3.(1) The local value added shall be weighted by the wages or salaries paid to nationals of a
member State expressed as a percentage of the total sales of the approved product and calculated in
accordance with the formula V (100 + W)
100
(2) For the purposes of subsection (1):
(a) "V" represents the local value added expressed as a percentage of the total sales of the
approved product; and
(b) "W" represents the wages and salaries paid to nationals of a member State and
expressed as a percentage of the total sales of the approved product.
Determination of value of content of component
4. In determining the value of the content of a component produced by a member State for the
purposes of paragraph (a) of the definition of "local value added", no account shall be taken of any
element in the cost of that component, except the value of the imported raw material content.
Non-resident
5.(1) For the purposes of paragraphs (c) and (d) of the definition of "local value added", an
enterprise shall be deemed not to be resident in a member State if it is controlled directly or indirectly
by a person who is not resident in a member State (hereinafter referred to as a non-resident).
(2) A non-resident shall be deemed to have control of an enterprise if he owns or is entitled to
purchase the greater part of the ordinary paid-up share capital (not including shares which carry no
voting rights) of the enterprise.
Declaration of approved product
6.(1) Subject to section 9, the Minister may by order declare that a product of manufacture shall be
an approved product for the purposes of this Act if he is satisfied that the manufacture of the product
would:
(a) Be of benefit to Barbados, both economic and non-economic considerations being
taken into account; and
(b) have a beneficial effect on employment in numbers and gross wages.
(2) An order may be made under subsection (1) in respect of a product which is being
manufactured in Barbados at the date of the order.
(3) The Minister, before declaring under subsection (1) that a product of manufacture shall be an
approved product for the purposes of this Act, shall also have regard to the following considerations:
(a) The effect which approval would have on existing industries;
(b) whether manufacture of the product would utilize raw materials or skills available in
Barbados;G/SCM/Q3/BRB/9
Page 69
(c) whether the existing capacity for manufacture of the product is sufficient to meet the
demand for the product; and
(d) the element of risk involved in establishing a successful manufacture of the product.
Declaration of approved enterprise
7.(1) Subject to section 9, the Minister, on an application made by or on behalf of an enterprise for
the purpose of establishing an industry in Barbados to manufacture an approved product, or in the
case of an enterprise which at the commencement of this Act is manufacturing the product declared
by order under section 6 to be an approved product, may by order declare the enterprise to be an
approved enterprise if he is satisfied that the enterprise:
(a) Is or will be adequately financed;
(b) has adequate trained personnel in its employ or is able to obtain the services of such
personnel;
(c) has access to the necessary technical information;
(d) is able to obtain adequate raw materials;
(e) possesses, or will possess, the necessary factory.
(2) In an order made under subsection (1) a date shall be declared to be the date on which, for the
purposes of this Act:
(a) Construction is deemed to begin; and
(b) production is deemed to begin.
(3) Every order made under subsection (1):
(a) Shall specify the factory in respect of which the benefits under this Act may be
enjoyed;
(b) may declare that in its application it shall be restricted to a part of a factory or to a
particular grade, quality, description, type or classification of product;
(c) may provide for its revocation in any case of breach of or non-compliance with its
requirements.
Applications for approval
8. An application under section 7 shall specify:
(a) The locality or proposed locality of the factory in which the enterprise is
manufacturing or intends to manufacture the approved product;
(b) the date of construction of the factory, which shall not be later than 12 months after
the date of the application, except that where a factory is already in existence, the
application shall contain all information that may enable the Minister to specify the
date of construction;G/SCM/Q3/BRB/9
Page 70
(c) the date on which production is likely to begin, which shall not be later than
18 months from the date of construction, except that where the production of an
approved product has already commenced, the application shall contain all
information that may enable the Minister to specify the date on which production is
deemed to begin;
(d) the approved product already being manufactured or intended to be manufactured;
(e) all information, supported by documentary evidence, relevant to the determination of
the local value added.
Objection to proposals to approve a product or enterprise
9.(1) Before an order is made either under section 6 or 7, the Minister shall cause the fact that he is
about to be asked to consider whether for the purposes of the Act a product for manufacture should be
an approved product, or an enterprise, an approved enterprise, to be advertised in Barbados, and if the
Minister thinks it necessary, elsewhere.
(2) The advertisement referred to in subsection (1) shall contain such particulars as to the product
or enterprise of which such approval is being sought as the Minister considers necessary.
(3) The notice shall state the period within which the objection to the approval of the product or
the enterprise shall be made.
(4) Every objection received by the Minister within the time stipulated in the advertisement or
within such extended time as the Minister allows shall be considered by the Minister before an order
is made under section 6 or 7.
Minister to have absolute discretion in respect of approval
10. The Minister shall have an absolute discretion to grant or refuse approval in respect of a
product as an approved product or an enterprise as an approved enterprise.
Classification of enterprises
11.(1) Subject to section 21(4), an approved enterprise may be granted benefits under this Act for a
period not exceeding the period applicable thereto specified in the Third Schedule (and hereinafter
referred to as the period of the tax holiday) if it is classified into one of the following categories:
(a) Group I Enterprise;
(b) Group II Enterprise;
(c) Group III Enterprise;
(d) Enclave Enterprise.
(2) Prior to the classification of an approved enterprise as a Group I, Group II or Group III
Enterprise, the local value added as calculated in accordance with section 3 shall be estimated.G/SCM/Q3/BRB/9
Page 71
PART II
Provisions Relating to Income Tax
Exemption from income tax. Cap. 73
12. Notwithstanding the Income Tax Act, but subject to sections 24 to 27, an approved enterprise
shall be entitled to relief from income tax from the date of production in respect of profits and gains
accruing to it for the period of the tax holiday.
Benefits for enterprise engaged in highly capital intensive industry. Third Schedule
13.(1) Where an approved enterprise is engaged in a highly capital intensive industry, the Minister
may by order grant it any benefit under this Act for a period not exceeding that for which a benefit
may be granted to an Enclave Enterprise in accordance with the Third Schedule.
(2) For the purposes of this section and section 27, "highly capital intensive industry" means an
industry the capital investment in which is not less than 50 million dollars Barbados currency.
Depreciation allowance
14. In computing the profits of an approved enterprise for the purposes of relief from income tax
under section 12, allowance shall be made for any depreciation in value which would but for the
exemption be claimable in that year.
Deduction for capital expenditure
15. The provisions of the Income Tax Act shall apply to an approved enterprise from the first
year of income following the year of income during which the period of the tax holiday ends, except
that a deduction as an initial allowance for capital expenditure shall only be in respect of expenditure
incurred after the expiration of the period of relief from income tax.
Set-off
16. Any loss incurred by an approved enterprise during the period of the tax holiday may be set
off in accordance with section 17.
Losses carried forward for purpose of set-off. Cap. 73
17.(1) Notwithstanding section 23 of the Income Tax Act, on the expiration of the period of the tax
holiday, the net losses incurred during that period may be carried forward for the purpose of set-off in
computing the profits of an approved enterprise for the five-year period following the period of the
tax holiday.
(2) Where the order declaring an enterprise to be an approved enterprise is revoked under
section 25, such enterprise shall, for the purposes of carrying forward net losses incurred prior to the
revocation of the order, be deemed to be an approved enterprise.
(3) For the purposes of this section, "net losses" means the excess of all losses over all profits
made during the period of the tax holiday.
Dividends
18.(1) Subject to subsection (2), dividends and other distributions from profits accruing to an
approved enterprise as a result of the manufacture of an approved product during the period of the taxG/SCM/Q3/BRB/9
Page 72
holiday shall, when paid to shareholders or their nominees, be exempt from the payment of income
tax.
(2) Where a shareholder is not resident in a member State, the exemption referred to in
subsection (1) shall apply to so much of the tax as exceeds the tax liability of the shareholder in his
country of residence.
Interest
19. Interest in whatever form, on loan capital and any other moneys borrowed by an approved
enterprise, whether in the form of overdraft, debenture or otherwise when paid to the recipient, shall
not be exempt from the payment of income tax.
PART III
Provisions Relating to Interim Trader's
Licence Fees and Trade Tax
Relief from trader's licence fees and from trade tax. Cap. 180. Cap. 107
20. Notwithstanding anything contained in the Interim Traders Act, or in the Local Government
Act, an approved enterprise shall, from the date of production in respect of any business carried on by
that enterprise in relation to an approved product, be exempt from any fee chargeable under the
Interim Traders Act, for an interim trader's licence, and from any trade tax chargeable under the Local
Government Act, during the period of the tax holiday.
PART IV
Provisions Relating to Customs Duty
Licence to import
21.(1) If the Minister is satisfied that any plant, equipment, machinery, spare parts, raw materials or
components thereof are not available in the Common Market at prices and qualities and in adequate
quantities for export comparable to those available from an area outside the Common Market, he may
issue a licence to an approved enterprise to import such articles or any of them from an area outside
the Common Market.
(2) On receipt of a licence issued under subsection (1), an approved enterprise may import plant,
equipment, machinery, spare parts, raw materials or components thereof free from customs duty from
an area outside the Common Market for the appropriate period of relief referred to in section 12 or
section 27(3) or (4), if the Comptroller is satisfied that the plant, equipment, machinery, spare parts,
raw materials or components thereof are required:
(a) For constructing, altering, reconstructing or extending the approved enterprise; or
(b) for use by the enterprise in the manufacture of an approved product.
(3) Where subsequent to the issue of a licence under subsection (1) there is a change in the
circumstances contemplated by that subsection, the Minister shall:
(a) Revoke the licence; or
(b) alter the licence so as to exclude any of the articles in respect of which the change
exists.G/SCM/Q3/BRB/9
Page 73
(4) Notwithstanding subsections (1), (2) and (3) of this section, an Enclave Enterprise may, until
such time as it ceases to be an Enclave Enterprise, import any article mentioned in those subsections
without obtaining a licence under subsection (1).
Record and inspection of articles
22.(1) An approved enterprise which:
(a) Imports into Barbados from a country outside the Common Market; or
(b) purchases within the Common Market;
any article in respect of which it has been granted relief from customs duty under
section 21(2) shall:
(i) Keep a record of the articles so imported or purchased in such form and containing
such particulars as the Comptroller requires;
(ii) cause the articles to be marked in such manner as the Comptroller requires;
(iii) permit the Comptroller or a person authorized by him for the purpose, to inspect at
reasonable times such record, and to have access to any factory or warehouse under
its control for the purpose of examining any such article which the Comptroller has
reason to believe to be therein, and of satisfying himself of the accuracy of the
particulars contained in the record.
(2) An approved enterprise which contravenes any of the provisions of this section is guilty of an
offence and liable on summary conviction to a fine of one thousand dollars.
Restriction on disposal of articles
23.(1) An article imported by an approved enterprise under section 21(2) shall not be sold or
otherwise disposed of by the enterprise except:
(a) To the transferee, in the case of a transfer of ownership of a factory belonging to the
enterprise; or
(b) where the approved enterprise pays or gives security to the satisfaction of the
Comptroller for the payment of an amount equivalent to the amount of customs duty
which but for section 21(2) would have been payable on importation of such article,
and the article was so imported by the enterprise;
(c) after the expiration of five years from the date of purchase of the article.
(2) An approved enterprise which contravenes any of the provisions of this section is guilty of an
offence and liable on summary conviction to a fine of one thousand dollars.
PART V
Miscellaneous
Delay of construction or manufacture
24.(1) Where an approved enterprise fails or neglects:G/SCM/Q3/BRB/9
Page 74
(a) To commence construction of a factory on or before the date of construction; or
(b) to commence manufacture at the factory of an approved product in marketable
quantities, on or before the date of production;
the Minister may issue a notice in writing requiring it within 30 days of the date of such
notice either:
(i) To commence construction of the factory or the manufacture of the approved product
in marketable quantities, as the case may be; or
(ii) to prove to the satisfaction of the Minister that the failure or neglect is attributable to
a cause beyond its control and that there is a reasonable prospect of its commencing
construction or manufacture, as the case may be, within such time as the Minister
considers reasonable.
(2) Where an approved enterprise satisfies the requirements of subparagraph (ii) of
subsection (1), the Minister shall by order substitute for the date of construction or the date of
production, as the case may be, some other specified day, and thereupon the provisions of this Act
shall take effect as if the day specified in such order was the date of construction or the date of
production, as the case may be, specified in the order made under section 7.
Revocation of order
25.(1) The Minister may, having regard to all the circumstances of the case, if he thinks it expedient
so to do, by order revoke an order made under section 7, where an approved enterprise:
(a) Contravenes any of the provisions of this Act or the regulations; or
(b) fails to comply with the requirements of a notice issued under section 24.
Cap. 73. Cap. 66
(2) Subject to section 17(2), upon the revocation of an order made under section 7, the provisions
of sections 12, 20 and 21 shall be deemed never to have applied to the enterprise, and such enterprise
shall, notwithstanding anything contained in the Income Tax Act or the Customs Act, pay to the
Commissioner and the Comptroller any sums which but for sections 12 and 21(2) would have been
payable as income tax and customs duty.
(3) Notwithstanding subsection (2), the Minister may, if he thinks that the payment of any such
sums would cause undue hardship, or if for any other reason he deems it expedient to do so, remit the
whole or part of any such sums payable by the enterprise.
(4) All sums payable under this section may be recovered as a civil debt before a magistrate for
District A.
Restriction on use of factory
26.(1) Subject to subsection (3), no factory belonging to an enterprise which is being used or is
intended to be used for the manufacture of an approved product shall, during the period of the tax
holiday, without the prior approval of the Minister, be used for purposes other than the manufacture of
the approved product.G/SCM/Q3/BRB/9
Page 75
(2) An enterprise which contravenes the provisions of subsection (1) is guilty of an offence and
liable on summary conviction to a fine of one thousand dollars, and in the case of a continuing offence
to a further fine not exceeding two hundred dollars in respect of each day or part thereof during which
the offence continues after conviction thereof.
(3) This section shall not apply to an enterprise which cease to be an approved enterprise and in
respect of which all sums payable to the Commissioner and the Comptroller in respect of income tax
and customs duty have been paid.
Appraisal of performance of enterprise
27.(1) The Minister shall:
(a) At the expiration of three years from the date of production; and
(b) thereafter at intervals of two years until the cessation of all benefits under this Act;
appraise the performance of an approved enterprise other than an Enclave Enterprise for the
purpose of determining whether any change in its classification is necessary.
(2) Where on an appraisal under subsection (1) an approved enterprise:
Third Schedule
(a) Fails to maintain its classification and cannot be reclassified into any of the other
groups specified in the Third Schedule, the enterprise shall with effect from the date
of notice of the decision of the Minister under subsection (5) be no longer treated as
an approved enterprise for the purposes of sections 12, 20 and 21(2);
(b) maintains its classification or is reclassified into any of the other groups specified in
the Third Schedule, the enterprise shall continue as an approved enterprise, and
paragraph (b) of subsection (1) shall continue to apply.
(3) Where as a result of the reclassification of an approved enterprise into a lower group, the
period of the tax holiday exceeds the maximum period permitted in that group, the Minister shall by
order reduce the period so as not to exceed the maximum period permitted in the lower group to
which the approved enterprise has been reclassified.
(4) Where an approved enterprise is reclassified into a higher group, the Minister may by order
increase the period of the tax holiday so as not to exceed the maximum period permitted in the group
to which the approved enterprise has been reclassified.
(5) The Minister shall as soon as practicable after an appraisal under subsection (1) serve notice
of his decision on the approved enterprise.
(6) This section shall not apply to a highly capital intensive industry.
Transfer of status of approved enterprise
28.(1) The Minister may by notice published in the Official Gazette transfer the status of an
approved enterprise to another enterprise where:
(a) An approved enterprise merges with or is taken over by another enterprise, or forms
part of an enterprise's reconstruction; orG/SCM/Q3/BRB/9
Page 76
(b) in his opinion it is equitable or in the public interest to do so.
(2) Prior to the issue of a notice under subsection (1), the Minister may require the enterprise to
which the status of an approved enterprise is to be transferred to comply with such conditions and to
give such undertakings and assurances and in such form as he considers desirable having regard to the
public interest.
(3) On the issue of a notice under subsection (1), all rights, privileges, benefits, immunities,
duties and obligations conferred or imposed by or under this Act on the former enterprise may be
transferred to the latter enterprise.
Regulations
29. The Minister may make such regulations as he thinks necessary for giving effect to the
provisions of this Act.
Publication in Official Gazette
30. All orders made by the Minister under this Act shall be published in the Official Gazette .
Savings
31.(1) Subject to subsection (2), the Minister may not, after the commencement of this Act, declare:
Cap. 75. (a) A product to be an approved product or an enterprise an approved enterprise for the
purposes of the Industrial Incentives Act; or
Cap. 74. (b) a product to be an approved export product or a company or statutory board to be an
approved export producer for the purposes of the Industrial Development (Export
Industries) Act.
(2) Where prior to the commencement of this Act an application for approved status was made
under any Act referred to in subsection (1) and the application is at the commencement of this Act
pending, the application shall be treated as if it were made under this Act, and the provisions of this
Act shall apply accordingly.G/SCM/Q3/BRB/9
Page 77
FIRST SCHEDULE
(Section 2)
Products Excluded from Definition of Approved Products
Aerated waters
Automobile mufflers (not produced as part of an integrated automobile exhaust system)
Bakery products
Beer
Brushes and mops
Cardboard boxes
Cigarettes
Clocks
Coir products, mats and matting
Concrete blocks
Concrete pipes (non-asbestos)
Concrete tiles
Copra
Corrugated cardboard containers
Drinking straws
Edible oils and fats from copra
Handicraft items
Hats and caps
Hollow ware (aluminium)
Mattresses
Nails (other than galvanized) 1982-38.
Paper bags
Phonograph records
Plastic film
Popcorn
Printery
Rum
Shirts and knitted underwear
Stationery (other than continuous business forms)
Syrups
Tissue paper products
Tubular furniture (aluminium)
Twine
Umbrellas
Window frames (aluminium)
_______________
SECOND SCHEDULE
(Section 2)
Member States
(a) Antigua Jamaica
Barbados Montserrat
Belize St. Kitts/Nevis/Anguilla
Dominica St. Lucia
Grenada St. Vincent
Guyana Trinidad and Tobago
(b) Any other State of the Caribbean region which becomes a member of the Common Market.
______________G/SCM/Q3/BRB/9
Page 78
THIRD SCHEDULE
(Section 11)
Period of Tax Holiday
Classification of approved enterprise Period of tax holiday
Groups Years
Group I Enterprise 10
Group II Enterprise 8
Group III Enterprise 6
Enclave Enterprise 10
CHAPTER 71A.1
FISCAL INCENTIVES (EXTENSION OF BENEFITS)
ARRANGEMENT OF SECTIONS
Section
1. Short title.
2. Extension of benefits.
3. Commencement.
_______________
SCHEDULEG/SCM/Q3/BRB/9
Page 79
CHAPTER 71A.1
FISCAL INCENTIVES OF BENEFITS
An Act to Extend Certain Benefits Enjoyed by Certain Enterprises
which were Granted Pursuant to the Fiscal Incentives Act
1990-24
Commencement
[see Section 3]
Short title
1. This Act may be cited as the Fiscal Incentives (Extension of Benefits) Act .
Extension of benefits. Schedule. Cap. 71AA
2.(1) The benefits agreed to be granted and enjoyed by the enterprises specified in the first column
of the Schedule to commence after the expiry date mentioned in the second column of the said
Schedule , and purported to be granted in accordance with the Fiscal Incentives Act shall be deemed to
have been granted in accordance with that Act.
(2) The benefits conferred respectively on the enterprises specified in the first column of the
Schedule by the original enactments shall continue in force until the expiry date indicated in the fourth
column of the Schedule .
Cap. 71AA
(3) For the purposes of the section "original enactments" means the enactments specified in the
third column of the Schedule which respectively conferred benefits on such enterprises in accordance
with the Fiscal Incentives Act .
Commencement
3. This Act:
(a) In respect of the enterprise, Caribbean Canvas and Awning Company Limited, shall
be deemed to have come into operation on the first day of December 1988; and
(b) in respect of the enterprise, AHI Plastic (Caribbean) Limited, shall be deemed to have
come into operation on the first day of April 1989.
SCHEDULE
(Section 2)
Name of enterpriseExpiry date of
benefits under the
Fiscal Incentives Act
Cap. 71AOriginal enactment Expiry date of
extension
Caribbean Canvas
and Awning
Company Limited1988-11-30 S.I. 1987 No. 2 1991-11-30
AHI Plastic
(Caribbean) Limited1989-03-31 S.I. 1982 No. 192 1993-03-31G/SCM/Q3/BRB/9
Page 80
CHAPTER 71AA
FISCAL INCENTIVES (VALIDATION OF BENEFITS)
ARRANGEMENT OF SECTIONS
Section
1. Short title.
2. Validation and continuation of benefits.
3. Commencement.
SCHEDULE
CHAPTER 71AA
FISCAL INCENTIVES (VALIDATION OF BENEFITS)
An Act to Validate Certain Benefits Enjoyed by Certain Enterprises which were
Granted Otherwise than in Accordance with the Fiscal Incentives Act
Commencement
[Section 3]
Short title
1. This Act may be cited as the Fiscal Incentives (Validation of Benefits) Act .
Validation and continuation of benefits. Schedule. Cap. 71A
2. The benefits agreed to be granted and enjoyed by the enterprises specified in the first column
of the Schedule to commence after the expiry date mentioned in the second column of the said
Schedule , and purported to be granted in accordance with the Fiscal Incentives Act shall be deemed to
have been validly granted in accordance with that Act.
(2) The benefits conferred respectively on the enterprises specified in the first column of the
Schedule by the original enactments shall continue in force until the expiry date indicated in the fourth
column of the Schedule .
(3) For the purposes of the section "original enactments" means the enactments specified in the
third column of the Schedule which respectively conferred benefits on such enterprises in accordance
with the Fiscal Incentives Act .
Commencement
3. This Act:
(a) In respect of the enterprise Caribbean Chemical Industries Limited, shall be deemed
to have come into operation on 1 June 1984; and
(b) in respect of the enterprise Pinkie Polly Limited, shall be deemed to have come into
operation on 1 March 1986;G/SCM/Q3/BRB/9
Page 81
(c) in respect of the enterprise Soilax Barbados Limited, shall be deemed to have come
into operation on 1 June 1986;
(d) in respect of the enterprises Chemical Industries and Gulf Stream Industries
(Caribbean) Limited shall be deemed to have come into operation on 1 July 1986;
(e) in respect of the enterprise Audio Magnetic (Barbados) Limited, shall be deemed to
have come into operation on 1 October 1986;
(f) in respect of the enterprise Henkel Chemicals (Barbados) Limited, shall be deemed to
have come into operation on 15 October 1986; and
1989-2 (g) in respect of the enterprise Gulf Stream Industries (Caribbean) Limited, shall be
deemed to have come into operation on 1 July 1988.
SCHEDULE
1989-2.
(Section 2)
Name of enterpriseExpiry date of
benefits under the
Fiscal Incentives Act
Cap. 71AOriginal enactment Expiry date of
extension
Caribbean Chemical
Industries Limited1984-05-31 S.I. 1979 No. 119 1987-05-30
Pinkie Polly Limited 1986-02-28 S.I. 1983 No. 59 1988-02-28
Soilax Barbados Limited 1986-05-31 S.I. 1983 No. 46 1988-05-31
Chemical Industries 1986-06-30 S.I. 1983 No. 177 1988-05-31
Gulf Stream Industries
(Caribbean) Limited1986-06-30 S.I. 1983 No. 137 1988-06-30
Audio Magnetic
(Barbados) Limited1986-09-30 S.I. 1983 No. 20 1989-09-30
Henkel Chemicals
(Barbados) Limited1986-10-16 S.I. 1981 No. 19 1988-05-31
Gulf Stream Industries
(Caribbean) Limited1988-06-30 S.I. 1983 No. 137 1991-06-30G/SCM/Q3/BRB/9
Page 82
CHAPTER 71B
GRANTLEY ADAMS INTERNATIONAL AIRPORT
(EXPANSION AND IMPROVEMENT)
(EXEMPTION FROM DUTIES)
ARRANGEMENT OF SECTIONS
Section
1. Short title.
2. Interpretation.
3. Exemption from duties.
4. Drawback of duty on oil.G/SCM/Q3/BRB/9
Page 83
CHAPTER 73
INCOME TAX
ARRANGEMENT OF SECTIONS
Section
PART I
Preliminary
1. Short title.
2. Parts and divisions of Act.
PART II
Imposition and Extent of Tax
DIVISION A
Charge to Tax
3. Charge to tax.
DIVISION B
Persons Exempt from Tax
4. Persons exempt from tax.
4A. Repealed by 1992-28 .
DIVISION C
Calculation of Assessable Income: General
5. Income from all sources.
6. Income from business or property.
7. Income from office or employment.
7A. Rent free accommodation and accommodation paid for in part.
DIVISION D
Calculation of Assessable Income: Amounts Included
8. Amounts included in assessable income.
DIVISION E
Calculation of Assessable Income: Amounts not Included
9. Amounts not included in assessable income.
DIVISION F
Calculation of Assessable Income: Amounts Deductible
10. Amounts deductible in calculation of assessable income.G/SCM/Q3/BRB/9
Page 84
DIVISION G
Calculation of Assessable Income: Amounts not Deductible
11. Amounts not deductible in calculation of assessable income.
DIVISION H
Calculation of Assessable Income: Allowances
12. Investment and initial allowances in calculation of assessable income.
12A. Entitlement to cash rebate.
12B. Initial allowance on conversion of residential property.
12C. Building allowance.
12C.1. Allowances re: water storage facilities.
12D. Research and development allowance.
12E. Market development allowance for tourist industry.
12E.1 Tourism Development Fund
12E.2 Barbados Agency for Micro Enterprise Development Ltd.
12E.3 Enterprise Growth Fund Ltd.
12E.4. Regional Negotiating Fund.
12E.5. Conditions on which benefits may be granted.
12E.6. Allowance for engaging trade experts etc.
12E.7. Hotel Equity Investment Fund Inc.
12E.8. Listing shares on Securities Exchange.
12F. Type of expenditure.
12G. Tax credit in respect of foreign currency.
12H. Tax credit in respect of foreign currency from income year 1996 onwards.
13. Annual allowances in calculation of assessable income.
13A. Arrears of annual allowances.
13B. Annual allowance on conversion of residential property.
13C. Certificate in support of claim.
14. Rules relating to annual allowances.
14A. Export allowance.
14A.1. Investment Income.
14B. Non-application of section 14A.G/SCM/Q3/BRB/9
Page 85
DIVISION I
Calculation of Assessable Income: Miscellaneous
Rules: Special Persons
15. Repealed by 1980-12 .
16. Non-residents.
17. Persons resident but not domiciled.
DIVISION J
Calculation of Assessable Income: Miscellaneous Rules
Special Business
18. Business operation of ships or aircraft.
19. Business of insurance companies.
20. Business of associations of underwriters.
21. Repealed by 1986-2 .
22. Deductions and allowances for separate businesses.
DIVISION K
Calculation of Assessable Income: Miscellaneous Rules
Special Cases
23. Losses.
23A. Interpretation in respect of section 23A to 23K.
23B. Determination of subsidiary company.
23C. Claim for group relief.
23D. Losses which may be surrendered.
23E. Corresponding accounting periods.
23F. Companies joining or leaving group.
23G. Relief obtainable once for the same amount.
23H. Aggregate of claim.
23I. Capital allowances.
23J. Tax recovery.
23K. Exempt companies.
23L. Profits and losses and distribution or charge on income vis-à-vis group relief.
24. Capital element of annuities.
24A. Registered retirement plan contributions.
24B. Annual payments to benevolent organizations.
24C. Payments to minors.
24D. Payments to incapacitated individuals.
24E. Amount deductible for minors and incapacitated individuals.
24F. Registered retirement savings plan contributions.G/SCM/Q3/BRB/9
Page 86
24G. Withdrawal of funds.
24H. Conditions attached to withdrawal of contributions.
24I. Sale of home.
25. Transfers to minors.
26. Conditional transfers in trust.
27. Controlled companies.
27A. Loans to directors etc. of controlled companies.
28. Winding-up.
29. Artificial transactions.
DIVISION L
Calculation of Taxable Income: Postponed Benefit Deduction
30. National insurance contributions, and severance payments.
DIVISION M
Calculation of Taxable Income: New Shares
Purchased in Public or Private Company
31. Sale of shares.
32-35. Repealed by 1992-28 .
DIVISION N
Calculation of Taxable Income: Medical Expense Deduction
36. Repealed by 1992-28 .
DIVISION NA
Calculation of Taxable Income
HOUSEHOLD SERVICES
36A. Repealed by 1992-28.
DIVISION NB
Calculation of Taxable Income
ASSOCIATIONSS
36B. Cooperative societies.
36C. Associations
DIVISION O
Calculation of Taxable Income: Amounts Deductible
in Respect of Owner Occupied Property
37. Home allowance.
37A.-37A.1. Repealed by 1992-28 .G/SCM/Q3/BRB/9
Page 87
DIVISION OA
Calculation of Taxable Income: New Shares
Purchased in Public Company
37B. Deduction respecting new shares.
37C. Effect of sale of shares within five years.
DIVISION OAA
Calculation of Taxable Income: New Shares
Purchased in Private Company
37C.1-37C.2 Repealed by 1992-28 .
DIVISION OB
Calculation of Taxable Income: Investment in Mutual
Funds and Contributions to Venture Capital Funds
37D. Venture capital funds.
37E. Mutual funds.
37F. Mutual funds: calculation of assessable income.
DIVISION AD
Offences
79. Offences.
80. Prosecutions.
81. Evidence.
PART IV
Double Taxation Relief
82. Commonwealth double taxation relief.
83. Double taxation relief by international agreement.
PART V
Regulations
84. Regulations.
PART VI
Interpretation
85. Interpretation.G/SCM/Q3/BRB/9
Page 88
PART VII
Transitional and Expiring Provisions
86. Coming into force and repeal.
87. Spent .
88. Expiring provisions.
_______________
FIRST SCHEDULE
______________
SECOND SCHEDULE
_______________
THIRD SCHEDULE
_____________
FOURTH SCHEDULE
______________
FIFTH SCHEDULEG/SCM/Q3/BRB/9
Page 89
CHAPTER 73
INCOME TAX
An Act Respecting Income Taxes 1968-51.
1969-51.
1970-33.
1971-8.
1971-24.
1971-42.
1972-9.
1974-11.
1974-31.
1974-35.
1975-8.
1975-21.1976-10.
1977-16.
1977-62.
1978-44.
1979-2.
1979-32.
1980-12.
1981-15.
1982-15.
1982-37.
1982-47.
1982-54.1983-21.
1983-33.
1984-9.
1984-19.
1984-31.
1985-6.
1986-2.
1986-25.
1987-26.
1988-19.
1990-2.
1990-27.1991-9.
1992-281
1993-8.
1993-22.
1996-5.
1996-30.
1998-8.
1998-30.
1998-31.
1998-42.
1998-43.
1999-22.
Commencement.
[2 January 1969]
PART I
Preliminary
Short title
1. This Act may be cited as the Income Tax Act .
Parts and divisions of Act
2. This Act is divided into the following parts and divisions, that is to say:
PART II
Imposition and Extent of Tax
DIVISION A Charge to Tax.
DIVISION B Persons Exempt from Tax.
DIVISION C Calculation of Assessable Income: General
DIVISION D Calculation of Assessable Income: Amounts Included.
DIVISION E Calculation of Assessable Income: Amounts not Included.
DIVISION F Calculation of Assessable Income: Amounts Deductible.
DIVISION G Calculation of Assessable Income: Amounts not Deductible.
DIVISION H Calculation of Assessable Income: Allowances.
DIVISION I Calculation of Assessable Income: Miscellaneous Rules: Special Persons.
DIVISION J Calculation of Assessable Income: Miscellaneous Rules: Special Business.
DIVISION K Calculation of Assessable Income: Miscellaneous Rules: Special Cases.
DIVISION L Calculation of Assessable Income: Postponed Benefit Deduction.
1The amendments made by Act 1992-28 have effect from 1 July 1992 except amendments to sections
38(1)(a) to (g) and 38(2)(3)(5) to (8), 38A and 40(4), which have effect from 31 December 1992 and sections
52(2)(d) and 52(2)(e) which have effect from 1 January 1993.G/SCM/Q3/BRB/9
Page 90
DIVISION M Calculation of Taxable Income: New Shares Purchased in Public or Private
Company.
DIVISION N Repealed by 1992-28.
DIVISION NA Repealed by 1992-28.
DIVISION NB Calculation of Taxable Income: Associations.
DIVISION O Calculation of Taxable Income: Amounts Deductible in Respect of Owner Occupied
Property.
DIVISION OA Calculation of Taxable Income: New Shares Purchased in Public Company.
DIVISION OAA Repealed by 1992-28.
DIVISION OB Calculation of Taxable Income: Investment in Mutual Funds and Contributions to
Venture Capital Funds.
DIVISION P Repealed by 1992-28.
DIVISION PA Calculation of Taxable Income: Basic Deduction.
DIVISION Q Calculation of Taxable Income: General .
DIVISION R Miscellaneous Rules.
DIVISION S Rates of Tax.
DIVISION T Special Taxes.
PART III
Administration and Enforcement
DIVISION U Staff and Secrecy.
DIVISION V Returns of Income.
DIVISION W Assessments.
DIVISION X Objections.
DIVISION Y Appeals.
DIVISION Z Payment.
DIVISION AA Collection.
DIVISION AB Investigations.
DIVISION AC Representatives for tax purposes .
DIVISION AD Offences.
PART IV
Double Taxation Relief
PART V
Regulations
PART VI
InterpretationG/SCM/Q3/BRB/9
Page 91
PART VII
Transitional and Expiring Provisions
_______________
PART II
Imposition and Extent of Tax
_______________
DIVISION A
Charge to Tax
Charge to tax. 1975-8.
3.(1) Except as provided by subsection (2), every person who has a taxable income for an income
year shall pay in accordance with this Act an income tax calculated in accordance with this Act on his
taxable income for that income year.
1977-16. 1977-62
(2) A company that has a taxable income in any income year shall, instead of paying income tax
under subsection (1), pay a corporation tax on that income in respect of that year calculated in
accordance with this Act.
1978-44
(3) Notwithstanding subsection (2):
(a) In respect of the income year 1976 and every subsequent income year, a company
deemed to be a separate person carrying on the life insurance business of an insurance
company shall, in every year it carries on such business, pay, in addition to a
corporation tax under subsection (2), a tax on its premium income as calculated in
accordance with this Act;
(b) in respect of the income year 1977 and every subsequent income year, a company that
has a taxable income shall, in addition to the taxes specified in subsections (2) and
(3), pay such other tax as may be imposed on it under this Act; and
(c) as from 1 January 1978, and in every subsequent income year, a company that carries
on general insurance business shall, in every year it carries on such business, pay, in
addition to a corporation tax under subsection (2), a tax on its premium income as
calculated in accordance with this Act.
DIVISION B
Persons Exempt from Tax
Persons exempt from tax. Cap. 379
4.(1) No tax is payable under this Act by a person in respect of a period when that person was:
(a) A friendly society registered under the Friendly Societies Act ;G/SCM/Q3/BRB/9
Page 92
(b) a registered benevolent organization;
(c) a separate trust established for the purpose of administering the funds of a registered
retirement plan and exclusively engaged in administering those funds;
(d) a person deemed to be a separate person carrying on as a life insurance company a
separate business classified as a registered retirement plan business under section19;
or
(e) a person exempted from paying income tax by any other enactment in force in
Barbados.
1976-10
(2) Notwithstanding section 3(2), no tax is payable pursuant to that section by a company
operating in Barbados where an agreement is entered into between that company and the Government
of Barbados for non-payment of such tax.
1998-43. 1999-22
(3) No tax is payable under this Act by the Hotel Equity Investment Fund Inc.
4A. Repealed by 1992-28 .
DIVISION C
Calculation of Assessable Income: General
Income from all sources
5. Subject to this Act, the assessable income of a person in his income from all sources, whether
within or outside Barbados, and, without restricting the generality of the foregoing, includes income
from all:
(a) Businesses;
(b) property;
(c) offices; and
(d) employment.
Income from business or property
6. Subject to this Act, income for an income year from a business or property is the profit
derived from that business or property for that income year.
Income from office or employment
7. Subject to this Act, income for an income year from an office or employment is the
remuneration, including bonuses and commissions plus the value of all other benefits, whether in
money or otherwise, including quarters, board or residence, received or enjoyed in that income year in
respect of that office or employment.G/SCM/Q3/BRB/9
Page 93
Rent-free accommodation and accommodation paid for in part. 1983-21
7A.(1) Where an individual enjoys in respect of his office or employment the benefit of a rent-free
residence, whether furnished or unfurnished and whether owned or rented by his employer, then in
calculating the assessable income of that individual for the income year 1982 and every subsequent
income year, the value of the benefit so enjoyed shall be limited to an amount not exceeding $14,400
calculated at such rate as the Minister may by order prescribe in relation to the improved value of that
residence.
(2) Where an employer owns a residence and rents that residence whether furnished or
unfurnished to an employee at a rental that is less than the amount derived after applying the rate
prescribed by an order under section 7A(1), then in calculating the assessable income of the employee
for the income year 1982 and every subsequent income year the Commissioner shall assess the benefit
enjoyed by the employee in respect of that residence calculated on the difference between the amount
so derived and the rent paid by the employee; but the value of the benefit as assessed shall not exceed
the limit prescribed by this section.
(3) Where an employer rents a residence whether furnished or unfurnished and lets that residence
to an employee at a rental that is less than the rental which the employer pays in respect of that
residence, then in calculating the assessable income of the employee for the income year 1982 and
every subsequent income year, the Commissioner shall assess the benefit enjoyed by the employee in
respect of that residence calculated on the difference between the rent paid by the employer and that
paid by the employee; but the value of the benefit as assessed shall not exceed the limit prescribed by
this section.
(4) Where an employer undertakes to pay the tax on the benefit enjoyed by an individual under
subsection (1), then in calculating the assessable income of that individual no account shall be taken
of the benefit represented by the tax paid thereon by the employer.
(5) Subsection (1) shall not apply to an individual who is granted a rent allowance in respect of
his office or employment in lieu of a rent-free residence.
(6) The Minister may by order exempt such categories of individuals as he determines from the
rate prescribed under subsection (1), and may delegate to the Commissioner the power to fix the
taxable benefit of any rent-free residence enjoyed by any such individual at such amount as the
Commissioner considers reasonable in the circumstances.
(7) An order made under this section is subject to negative resolution.
DIVISION D
Calculation of Assessable Income: Amounts Included
Amounts included in assessable income. 1986-25. 1993-8. 1996-5
8.(1) Without restricting the generality of Division C in calculating the assessable income of a
person for an income year, the following amounts shall be included, namely:
(a) Amounts received in the year as, on account of, in lieu of, or in satisfaction of:
(i) Interest;
(ii) dividends;
(iii) annuities or other annual payments;G/SCM/Q3/BRB/9
Page 94
(iv) director's fees or other fees;
(v) retirement plan benefits; and
(vi) retiring allowances;
1985-6. (b) amounts received in the income year by the person as royalties;
1998-42. (c) amounts received in the income year by the person as returns on shares, units or other
form of equity interests in a mutual fund;
(d) amounts that are income of that person from a partnership or syndicate for the income
year, whether or not they have been withdrawn during the income year;
(e) amounts that have been credited on account, reinvested, accumulated, capitalized,
carried to any reserve, sinking or insurance fund or otherwise dealt with in the interest
of that person or on his behalf, whether or not those amounts have been paid to or
received by him in the income year or have become due or receivable by him in the
income year;
1985-6. 1992-25. 1992-28.
1971-42. Cap. 47
(f) amounts received in the income year as benefits, other than an invalidity benefit, a
funeral grant, old age contributory or non-contributory grant, survivor's benefit,
disablement benefit or death benefit under the National Insurance and Social Security
Act;
1985-6. (g) amounts received in the income year as a return of contributions under a registered
retirement plan other than such amounts as are paid as a lump sum contribution to
another registered retirement plan or are invested for a period of five years in such
bonds as the Minister approves, within four months of the date on which they were so
received;
1985-6. (gg) amounts received in the income year from pension schemes other than those specified
in paragraph (g), or other such amounts that are invested in such bonds as the
Minister approves, within four months of the date on which they were received and
for a period of at least five years;
(h) amounts received in the income year by a person carrying on business in the income
year on account of debts in respect of which a deduction for bad debts has been made
in calculating the assessable income of that person for a previous income year,
whether or not the person was carrying on the same business in the income year;
(i) an amount equal to the amount by which interest at the current prime bank lending
rate in Barbados exceeds the interest paid on a loan made by a company to a director
or shareholder for the period in the income year when the loan is outstanding;
(j) an amount recoverable under an insurance or contract of indemnity on stock-in-trade;
(k) an amount payable to a beneficiary from a trust or estate whether or not that amount
is paid in that income year;
1980-12. 1981-15. 1996-30.
(l) amounts:
(i) Represented by the issue of shares described in paragraph (p);G/SCM/Q3/BRB/9
Page 95
(ii) in the form of bonus payments converted into bonds, debentures or stock of
the Government of Barbados or in mutual funds as described in paragraph
(p.1);
(iii) in the form of dividends reinvested in shares as described in paragraph (p. 2);
and
(iv) represented by the issue of shares in accordance with paragraphs (s) to
serving employees;
of section 9(1), that are disposed of within five years of the date of issue;
1986-2 . (m) the benefit described in paragraph (ss) of section 9(1) in respect of shares disposed of
within five years of the date of purchase;
1996-5. (n) with effect from income year 1995, amounts claimed under section 10(d) as a
deduction which have not been paid:
(i) In the case of an individual in respect of a transaction that does not take place
at arm's length within the meaning of section 29, or an associated or related
company, within one year after the income year in which the amount was
deducted; or
(ii) in the case of an individual in respect of a transaction that takes place at arm's
length, or a non-associated or non-related company, within two consecutive
years after the income year in which the amount was deducted;
1998-8 . (o) amounts in the year in which a person ceases to carry on the business of self-
insurance, being the balance in a self-insurance fund in respect of which a deduction
has been made in calculating the assessable income of that person for a previous year.
1996-5.
(2) For the purposes of this section and section 10 "associated" or "related company" means a
company which has control of another company or where two companies are under the control of the
same person or persons.
DIVISION E
Calculation of Assessable Income: Amounts not Included
Amounts not included in assessable income
9.(1) In calculating the assessable income of a person for an income year, the following amounts
shall be included, namely:
1980-12. (a) The salary, emoluments and other benefits of the Governor-General or the person
performing the functions of the office of Governor-General, that are defrayed from
the Consolidated Fund, in respect of the period of exercise of the functions of the
office of Governor-General;
1993-22. (aa) notwithstanding anything in this Act, the pension payable to the Governor-General
that is defrayed from the Consolidated Fund in respect of the period during which he
exercised the functions of the office of Governor-General;G/SCM/Q3/BRB/9
Page 96
(b) the salary, emoluments and other benefits of diplomatic, consular or technical
assistance officers or employees and their families who are designated either
generally or specifically by regulation as being persons to whom this paragraph
applies, to the extent specified in the relevant regulation;
(c) wound and disability pensions granted to members of Her Majesty's Forces in right of
Her Government of Barbados or of the United Kingdom;
1984-31. (c.1) the value of the residences provided for members of the Barbados Defence Force;
1984-31. (c.2) emoluments paid to members of the Barbados Defence Force Reserve for
participating in:
(i) Evening trade parade, annual camp or weekend training; or
(ii) while performing duty on call-out or other emergency for a period not
exceeding 90 days in any one year;
(d) allowances for:
(i) Travelling expenses; or
(ii) maintaining and operating a vehicle, to the extent that the allowances may
reasonably be regarded as representing the cost to the person of travelling in
the performance of the duties of an office or employment;
1987-26. (e) interest on bonds, debentures or stock of the Government of Barbados, beneficially
owned by a non-resident person, to the extent specified by regulation;
*(f) Repealed by 1993-8 ;
1987-26. (ff) interest on tax reserve and tax refund certificates;
Cap.378A (g) income of a cooperative society registered under the Cooperative Societies Act , other
than income arising in respect of the sale of an article that is neither sold to a member
of the society nor produced nor obtained by the industry of a member of the society;
(h) amounts received in the year as a return of contributions under a retirement plan,
other than a registered retirement plan, if the contributions were included in
calculating the assessable income of that person for the income year in which they
were made;
(i) Repealed by 1992-28 ;
(j) interest on holdings of:
1982-47.
1983-21. (i) National Development Bonds;
(ii) National Housing Bonds;
(iii) Savings Bonds;
*Paragraph (f) repealed with effect from 31 December 1992.G/SCM/Q3/BRB/9
Page 97
1985-6. up to a limit per issue in respect of each person and in respect of each class of bond,
of $50,000; and
1982-37. (iv) Sugar Industry Bonds that under the terms of the issue are within the class of
non-taxable bonds;
1975-8. (k) emoluments paid by the East Caribbean Currency Authority to its officers;
(l) (i) in respect of the income year 1974, amounts received by a resident company
registered in Barbados as dividends from another such company;
1978-44. (ii) in respect of the income year 1975 and subsequent income years, amounts
received by a resident company registered in Barbados as dividends, other
than preference dividends, from another such company;
(m) emoluments and other benefits and income of any person which are declared to be
exempt from tax by any other enactment in force in Barbados;
1978-44. (n) 50 per cent of any amount payable as gratuity to a person by virtue of a contract of
employment between himself and the Crown or between himself and any statutory
board or government agency approved by the Minister;
1980-12.
1981-15. (o) bonus payments on amounts deposited with the Barbados National Bank of not less
than $10 nor more than $100 per month in respect of each depositor, over a period of
two years or more;
1980-12.
1981-15. (p) subject to section 8(1), annual bonus payments of an employing company converted
into shares issued to employees and that are equal to not more than 75 per cent of the
value of the bonus payable to each employee up to a limit in respect of each employee
of $7,500;
1990-27.1996-30.
1996-30 (p.1) subject to section 8(1), annual bonus payments payable to employees by a company
that is not offering shares to those employees, that are converted into bonds,
debentures or stock of the Government of Barbados or in mutual funds within a
period of four months from the date on which payment of the annual bonus becomes
due and that are equal to not more than 75 per cent of the value of the bonus payable
to each employee up to a limit in respect of each employee of $7,5000; and
1996-30. (p.2) subject to section 8(1), dividends received by an individual resulting from a
reinvestment of shares issued in lieu of dividends and that are equal to not more than
75 per cent of the value of the dividends up to an annual limit of $7,500;
1998-42. (p.3) amounts designated for a distribution by a mutual fund as a return on income on
investments made in accordance with section 37E;
1980-12.
1981-15. (q) without prejudice to section 27, the profits of a company that are converted into bonus
shares issued to existing shareholders of the company;
1980-12.
1981-15. (r) with effect from such date, whether retrospective or not, as may be prescribed in the
order, amounts paid in an income year by such international organizations as the
Minister by order prescribes, that relate and are equal to the tax liability of its
employees for that year;G/SCM/Q3/BRB/9
Page 98
1981-15. (s) shares at their nominal value issued by an employing company to its employees by
way of a gift on retirement or to employees with at least 20 years service with the
company, up to a limit of $5,000, in respect of each employee;
1986-2. (ss) the difference between the market value at the time of purchase and the purchase
price, being less than the market value, of shares purchased by an employee from an
employing company, up to a limit of 10 per cent of the assessable income of that
employee for the income year;
1981-15.
Cap. 361 (t) interest earned on the investment by a trade union registered under the Trade Unions
Act, of the subscriptions of its members;
1986-2. Cap. 300
1986-25. (u) without affecting paragraph (b) of section 8, half of the amounts received in Barbados
as royalties by an author within the meaning of sections 2 and 7 of the Copyright Act ;
1986-2. 1986-25. 1992-28. Cap. 47
(v) an invalidity grant, a funeral grant, old age contributory or non-contributory grant,
survivor's benefit, disablement benefit, or death benefit under the National Insurance
and Social Security Act ;
1996-5. (w) with effect from 1 May 1995, interest received by or credited to a pensioner aged
60 years or over;
1998-8 .(x) the amount of:
(i) $2,500,000 for income year 1993; and
(ii) $4,000,000 for each of the income years 1994, 1995 and 1996 respectively;
received as income by the self-insurance fund of the Barbados Light and Power
Company Limited; and
1998-8.
Cap. 310 (y) income received in respect of self-insurance funds regulated in the funds regulated in
the manner prescribed under section 154 of the Insurance Act .
1980-12. 1981-15
(2) For the purposes of subsection (1):
(a) "Employee" means a person employed in Barbados; and
1980-2.
1981-15. (b) "employing company" includes a subsidiary or its holding company.
1980-12.
(3) A company is the holding company of a subsidiary if it owns at least 51 per cent of the share
capital of the subsidiary.
DIVISION F
Calculation of Assessable Income: Amounts Deductible
Amounts deductible in calculation of assessable income. 1977-62. 1986-2. 1986-25
10.(1) In calculating the assessable income of a person for an income year, the following amounts
shall be deducted, namely:G/SCM/Q3/BRB/9
Page 99
(a) Subject to subsection (2), a disbursement or expense made or incurred by that person
in that income year for the purpose of the production of assessable income from
property or a business of that person other than expenditure in respect of which a
deduction specified in section 12D or section 12E is made;
(b) amounts expended by that person in that income year as trade tax or as rates or taxes
on property used for the purpose of the production of assessable income;
(c) premiums paid by that person in the income year on an insurance policy insuring that
person against loss or damage to property used for the purpose of the production of
assessable income;
1996-5 .(d) amounts paid or payable by that person as interest on borrowed money, whether
secured by mortgage or otherwise or unsecured, used for the purpose of the
production of assessable income;
(e) the total amount of debts owed to that person that are established by him to have
become bad debts in that income year and that have been included in calculating his
assessable income for that income year or a previous income year;
(f) amounts expended by that person and not subsequently reimbursed for:
(i) Travelling expenses; or
(ii) maintaining or operating a vehicle, to the extent that the amounts expended
may reasonably be regarded as representing the cost to the person of
travelling in the performance of the duties of an office or employment, or the
cost of travelling for the purpose of the production of an assessable income
from property or a business of that person;
1974-35.
Cap. 59A (g) amounts expended by that person in that income year as tax in accordance with the
Airline Service Business Tax Act ;
(h) amounts paid by a resident company registered in Barbados as preference dividends:
(i) Repealed by 1986-25 ;
1978-44. (j) in the case of general insurance business, amounts paid as tax on premium income by
both resident and non-resident insurers;
(k) Repealed by 1986-25 ;
(l) Repealed by 1986-25 ;
1998-8. (m) the amount of:
(i) $2,500,000 for income year 1993; and
(ii) $4,000,000 for each of the income years 1994, 1995 and 1996 respectively;
paid over to the self-insurance fund of the Barbados Light and Power Company
Limited;G/SCM/Q3/BRB/9
Page 100
1998-8.
Cap. 310 (n) amounts paid over to a self-insurance fund regulated in the manner prescribed under
section 154 of the Insurance Act .
1998-43. (o) amounts expended by that person in that income year for the purposes of obtaining a
rating to issue commercial paper on the Securities Exchange of Barbados, where that
commercial paper matures in not more than 365 days.
(2) Repealed by 1988-19 .
DIVISION G
Calculation of Assessable Income: Amounts not Deductible
Amounts not deductible in calculation of assessable income. 1986-2
11.(1) In calculating the assessable income of a person for an income year, the following amounts
shall not be deducted, namely:
(a) A disbursement or expense except to the extent that it was made or incurred by that
person for the income year for the purpose of the production of assessable income
from property or a business of that person;
1992-28. (b) a disbursement or expense, for the support of that person or his family or for any
other domestic or private business;
1992-28. (c) the rent of any dwelling-house except such proportionate part thereof as may
reasonably be regarded as attributable to the use of the dwelling-house for the
purposes of a business;
1975-8. (d) in the case of a company, the amount of any dividend, other than a preference
dividend, paid by the company in respect of any share;
(e) an outlay, loss or replacement of capital, on improvements, alterations or otherwise, a
payment on account of capital or an allowance in respect of depreciation,
obsolescence or depletion except as expressly permitted by this or any other
enactment;
1998-30. (f) an amount paid or payable in respect of income tax in a country or territory other
than Barbados where, under this Act any other enactment of Barbados or an
agreement between Barbados and that other country or territory, that amount is either
Commonwealth Income Tax or is deductible as a credit against income tax, under
Part IV;
1998-30. (g) disbursement or expense to the extent that it may reasonably be regarded as having
been made or incurred for the purpose of producing exempt income or in connection
with a business or property the income from which would be exempt; and
1998-30 .(h) an amount repaid to a registered retirement savings plan in respect of contributions
withdrawn for the purpose of acquiring a first dwelling-house for use as the residence
of that person.
(2) In calculating the assessable income of a person for an income year, no deduction shall be
made in respect of a disbursement or expense, otherwise deductible, except to the extent that:G/SCM/Q3/BRB/9
Page 101
(a) The purpose for which the disbursement or expense was made;
(b) the amount disbursed or expended;
were reasonable in all the circumstances.
(3) Spent.
(4) Spent.
DIVISION H
Calculation of Assessable Income: Allowances
Investment and initial allowances in calculation of assessable income. 1983-21. 1986-2. 1998-43.
12.(1) Where a person carrying on a business in an income year has made a capital expenditure in
that year on machinery or plant, other than equipment for scientific research, to be used in that
business or on an industrial building or structure used or to be used in that business for some purpose
other than resale or new machinery or plant to be used in the manufacturing sector, then, in
calculating the assessable income of that person for that income year:
First Schedule
(a) Where that business is carried on in a basic industry or is a business entitled to the
benefits described in the First Schedule and where that machinery or plant was new
or was imported into Barbados for the first time by that person, an amount may, at the
option of that person, be deducted as an investment allowance, equal:
1981-15.1982-15.
1986-2. First Schedule
(i) in the case of the manufacture and refining of sugar and the manufacture of
products from clay or limestone or in respect of a business entitled to the
benefits described in the First Schedule , to 40 per cent;
(ii) in the case of any other basic industry to 20 per cent;
of such capital expenditure; and
(b) in any other case, an amount may, at the option of that person, be deducted as an
initial allowance, equal to 20 per cent of such capital expenditure less the amount of
any rehabilitation grant received by that person in respect of that machinery or plant;
1983-21. (c) there shall be deducted as an initial allowance in respect of the income year 1982 and
any subsequent income year, an amount equal to 40 per cent of the capital
expenditure on an industrial building or structure.
(2) For the purposes of subsection (1), a capital expenditure made by a person on machinery or
plant to be used in a business and made before that person started to carry on that business shall be
deemed to have been made on the date when that person started to carry on that business.
(3) For the purposes of subsection (1), where a capital expenditure is made by a person on
machinery or plant to be used in a business that is carried on in a basic industry then, if within
three years after the income year in which the expenditure was made:G/SCM/Q3/BRB/9
Page 102
1986-2. 1987-26.
First Schedule
(a) The machinery or plant is used in a business that is not carried on in a basic industry
or in a business entitled to the benefits described in the First Schedule ; or
1986-2.
First Schedule (b) the machinery or plant is sold or transferred to a person other than a person acquiring
the machinery or plant for use in a business that is carried on in a basic industry or in
a business entitled to the benefits described in the First Schedule ; or
(c) the machinery or plant is sold or transferred in such circumstances that the sole or
main benefit obtained by the person who made the initial capital expenditure is the
obtaining of an investment or other allowance in respect of that machinery or plant;
then no investment allowance shall be made in respect of that capital expenditure, or if an
investment has been made it shall be withdrawn, and in lieu of the investment allowance an
initial allowance shall be made.
(4) Where an event described in paragraphs (a) to (c) of subsection (3) occurs within three years
after the income year in which the expenditure was made, the person to whom any investment
allowance has been made in respect of that expenditure shall give written notice to the Commissioner
to that effect and if he fails to do so he shall pay to the Commissioner a penalty equal to $100 plus
three times the amount of the investment allowance made in respect of that expenditure.
(5) Notwithstanding any other provisions of this Act, any adjustment of an assessment that may
be necessary in consequence of the withdrawal of an investment allowance may be made at any time
and, to the extent of the adjustment, an assessment so adjusted shall be deemed to be an original
assessment.
Entitlement to cash rebate. 1981-15
12A.(1)Where a person carrying on a business in an income year has made a capital expenditure in
that year on machinery or plant, to be used in an agricultural business, other than in the business of the
refining or manufacturing of sugar, and the agricultural machinery or plant was new or was imported
into Barbados for the first time by that person, that person is entitled to a rebate to be known as a
"cash rebate" of such amount and in respect of such machinery or plant as the Minister prescribes.
(2) For the purposes of subsection (1), where a capital expenditure is made by a person on
machinery or plant to be used in an agricultural business, other than in the business of manufacturing
or refining of sugar, then if within three years after the income year in which the expenditure was
made:
(a) The machinery or plant is used in a business that is not an agricultural business; or
(b) the machinery or plant is sold or transferred to a person other than a person acquiring
the machinery or plant for use in an agricultural business; or
(c) the machinery or plant is sold or transferred in such circumstances that the sole or
main benefit obtained by the person who made the initial capital expenditure is the
obtaining of a cash rebate in respect of that machinery or plant;
then no cash rebate shall be made in respect of that capital expenditure and if a cash rebate
has been made, it shall be withdrawn.
(3) Where an event described in paragraphs (a) to (c) of subsection (2) occurs within three years
after the income year in which the expenditure was made, the person to whom a cash rebate has beenG/SCM/Q3/BRB/9
Page 103
made in respect of that expenditure shall give written notice to the Commissioner to that effect and if
he fails to do so he shall pay to the Commissioner a penalty equal to $100 plus three times the amount
of the cash rebate made in respect of that expenditure.
(4) Notwithstanding this Act, any adjustment of an assessment that may be necessary in
consequence of the withdrawal of a cash rebate may be made at any time and, to the extent of the
adjustment, an assessment so adjusted shall be deemed to be an original assessment.
Initial allowance on conversion of residential property. 1985-6
12B.(1) Where a person has in an income year in respect of a building that he owns, made a capital
expenditure in the conversion of that building into units for rental as residences, then in calculating
the assessable income of that person for an income year an amount as an initial allowance may at the
option of the person be deducted as specified in subsection (2).
(2) The amount that is deductible as an initial allowance in respect of the conversion referred to
in subsection (1) is an amount equal to 40 per cent of the capital expenditure on the conversion.
Cap. 72
(3) Subsections (1) and (2) do not apply to a building used as a hotel in respect of which benefits
are granted under the Hotel Aids Act .
Building allowance. 1986-2. 1986-25.
12C.(1) Where a person has in an income year made a capital expenditure on any commercial building
then in calculating the assessable income of that person for an income year there shall be deducted as
a building allowance an amount equal to:
1987-26 (a) 1 per cent of the improved value of the property if it is not registered with the
National Trust; and
1986-25 (b) 10 per cent of the improved value of the property if it is registered with the National
Trust.
(2) In this section:
1986-25.
Cap. 72 "commercial building" means a building, other than a building described in section 12B or
85(4) or an hotel within the meaning of section 2 of the Hotel Aids Act , that is in use or is
purchased, constructed, reconstructed, altered or adapted to be used for commercial purposes
including use as offices or a warehouse or for any trade, but does not include a building let
out as a dwelling-house;
Cap.229A "improved value" has the meaning assigned to it by section 2 of the Land Valuation Act .
Allowance re: water storage facilities. 1996-5
12C.1(1) Where a person has in an income year made a capital expenditure in relation to a water
storage facility on any commercial building, then in calculating the assessable income of that person
for that income year, there shall be deducted as an allowance an amount up to a maximum of $3,500
for each commercial building.
(2) In this section "water storage facility" means the method of storing water by the use of tanks.G/SCM/Q3/BRB/9
Page 104
Research and development allowance. 1986-2. 1986-25. 1987-26. Second Schedule
12D.(1)Where a person who is engaged in the business of export to a country outside the Common
Market makes an expenditure specified in Part I of the Second Schedule for the purpose of promoting
the export sales of the business, on market research and development, then in calculating the
assessable income of that person for an income year there shall be deducted an amount equal to
150 per cent of the actual expenditure incurred.
(2) The benefit described in subsection (1) may only be granted on the certificate of the
Executive Director of the Export Promotion Corporation to the effect that the person claiming the
benefit is engaged in the business of export.
Market development allowance for tourist industry. 1986-25. 1987-26. Second Schedule
12E.(1) Where a person engaged in the tourist industry has in an income year incurred, primarily and
principally for the purpose of encouraging tourists to visit Barbados, expenditure for the purposes
specified in Part II of the Second Schedule then in calculating the assessable income of that person for
an income year there shall be deducted an amount equal to 150 per cent of the actual expenditure
incurred.
(2) The benefit described in subsection (1) may only be granted on the certificate of the Director
of the Barbados Board of Tourism to the effect that the person claiming the benefit is engaged in the
tourist industry.
Tourism Development Fund. 1988-19. Cap. 308. 1990-2
12E.1 (1) Where any person has in an income year, contributed an amount of money to the Tourism
Development Corporation, a company incorporated under the Companies Act , then in calculating the
assessable income of that person for that income year there shall be deducted an amount equal to:
(a) 150 per cent of the actual amount contributed; or
(b) 150 per cent of 3 per cent of his pre-tax profits for the preceding income year;
whichever is the lesser.
(2) The benefit described in subsection (1) may be granted on the certificate of the Secretary of
the Tourism Development Corporation to the effect that the amount was contributed and that it was
used for tourism promotion.
Barbados Agency for Micro Enterprise Development Ltd. Cap. 308. 1998-8
12E.2.(1) Where a company has in any income year invested an amount of money in the Barbados
Agency for Micro Enterprise Development Ltd., a company incorporated under the Companies Act
then in calculating the assessable income of that company for that income year, there shall be
deducted an amount equal to 120 per cent of the actual amount invested, up to a maximum investment
of $1 million.
(2) The benefit described in subsection (1) may only be granted on the certificate of the Secretary
of the Barbados Agency for Micro Enterprise Development Ltd., to the effect that the company
claiming the benefit has contributed that amount of money in respect of the Barbados Agency for
Micro Enterprise Development Ltd.G/SCM/Q3/BRB/9
Page 105
Enterprise Growth Fund Ltd. 1998-8. Cap. 308
12E.3.(1) Where a company has in any income year invested an amount of money in the Enterprise
Growth Fund Ltd., a company incorporated under the Companies Act then in calculating the
assessable income of that company for that income year, there shall be deducted an amount equal to
120 per cent of the actual amount invested, up to a maximum investment of $1 million.
(2) The benefit described in subsection (1) may only be granted on the certificate of the Secretary
of the Enterprise Growth Fund Ltd., to the effect that the company claiming the benefit has
contributed that amount of money in respect of the Enterprise Growth Fund Ltd.
Regional Negotiating Fund. 1998-8
12E.4.(1) Where a company has on or after 1 October 1997, contributed an amount of money to the
Regional Negotiating Fund, then in calculating the assessable income of that company in any income
year, there shall be deducted an amount equal to 150 per cent of the actual amount contributed in that
income year.
(2) The benefit described in subsection (1) may only be granted on the certificate of the Chief
Executive Officer of the Regional Negotiating Fund by whatever name called, to the effect that the
company claiming the benefit has contributed that amount of money in respect of the Regional
Negotiating Fund.
Conditions on which benefits may be granted. 1998-8
12E.5 Sections 12E.2 and 12E.3 do not apply in the case of shares acquired by transfer after they
have been issued by a company.
Allowance for engaging trade experts etc. 1998-8
12E.6 Where a company has in any income year incurred any expenditure for the purposes of the
Regional Negotiating Fund as a result of:
(a) Engaging persons who possess expertise; or
(b) training persons in respect of
any trade agreement applicable to the Fund, then in calculating the assessable income of that
company in any income year, there shall be deducted an amount equal to 150 per cent of the
actual amount expended in that income year.
Hotel Equity Investment Fund Inc. 1998-43. 1999-22
12E.7.(1) Where a company has in any income year invested an amount of money in the Hotel Equity
Investment Fund Inc. then in calculating the assessable income of that company for that income year,
there shall be deducted an amount equal to 120 per cent of the actual amount invested up to a
maximum investment of $1 million.
1999-22
(2) The benefit described in subsection (1) may only be granted on the certificate of the Secretary
of the Hotel Equity Investment Fund Inc. to the effect that the company claiming the benefit has
contributed that amount of money in respect of that Fund.G/SCM/Q3/BRB/9
Page 106
(3) Subsections (1) and (2) shall not apply to life insurance companies.
(4) Where any amount of the investment made under subsection (1) is withdrawn within
five years of the making of the investment, the amount so withdrawn shall be brought back into
charge to tax in the year in which the withdrawal was made.
Listing shares on Securities Exchange. 1998-43
12E.8.(1) Where a company has in an income year listed its shares on the Securities Exchange of
Barbados, then in calculating the assessable income of that company for that income year, there shall
be deducted an amount equal to 120 per cent of any costs incurred in that income year by the
company in listing its shares on the Securities Exchange of Barbados.
(2) The benefit described in subsection (1) may only be granted on the certificate of the General
Manager of the Securities Exchange of Barbados to the effect that the company claiming the benefit
has incurred those costs in listing its shares on the Securities Exchange of Barbados.
Type of expenditure. 1986-25. 1998-8
12F. The expenditure referred to in sections 12D, 12E and 12E.6 should be expenditure which
would, but for those sections, have been deductible under section 10.
Tax credit in respect of foreign currency. 1986-25. 1987-26. 1990-27
12G.(1)Where in the income year 1986 and in the nine immediately ensuing income years a person
carrying on business in Barbados derives assessable income from fees, payments or rewards in respect
of the undertaking of qualifying overseas construction projects or in respect of qualifying overseas
professional services and the Commissioner is satisfied that an amount of net foreign currency
earnings relating to the fees, payments or rewards has been transferred to the credit of that person:
(a) By the transfer of foreign currency to Barbados through the Barbados banking
system; or
(b) by payment outside Barbados, in foreign currency in an account held in a bank
outside Barbados with the written permission of the Central Bank of Barbados;
(c) by payment in Barbados in Barbados currency from funds held in Barbados which
would be legally remittable from Barbados;
1996-5. within the relevant income year, there shall be granted to that person a credit equal to 30 per
cent of the net foreign currency earnings.
(2) For the purposes of this section:
Cap. 71A (a) "Common Market" has the meaning assigned to it by section 2 of the Fiscal
Incentives Act ;
(b) "net foreign currency earnings" means the gross amount of foreign currency earnings
received from fees, rewards or payments from work performed in respect of
qualifying overseas construction projects or qualifying overseas professional services
minus all outgoings, including outgoings of a capital nature, incurred directly or
indirectly outside Barbados in relation to the qualifying overseas construction project
or qualifying overseas professional services;G/SCM/Q3/BRB/9
Page 107
(c) "outgoings" include:
(i) Loan repayments in respect of the qualifying overseas construction projects
or qualifying overseas professional services, whether the taxpayer borrow the
money directly himself or repays an intermediary acting on his behalf;
(ii) the cost of plant and machinery, minus its residual value or selling price upon
completion of the work, employed in performing the qualifying overseas
construction projects;
1990-27 .(d) "overseas" means the source of the investment outside the Common Market;
1987-26. (e) "qualifying overseas construction projects" and "qualifying overseas professional
services" are such as are specified in Part III and Part IV, respectively, of the Second
Schedule .
Second Schedule. 1987-26.
(3) The Minister may by order amend, vary or revoke the Second Schedule .
1990-27
(4) Notwithstanding anything in this Act contained, a person may not qualify for concessions
under this section and section 14A in respect of the same source of income.
Tax credit in respect of foreign currency from income year 1996 onwards. 1996-5. 1998-31
12H.(1) Where in the income year 1996 and subsequent income years a person carrying on business
in Barbados derives assessable income from fees, premiums, payments or rewards in respect of the
undertaking of qualifying overseas construction projects or in respect of qualifying overseas
professional services and the Commissioner is satisfied that an amount of foreign currency earnings
relating to the fees, premiums, payments or rewards has been transferred to the credit of that person
within the income year or within such later time as the Commissioner in his discretion may allow:
(a) By the transfer of foreign currency to Barbados through the Barbados banking
system;
(b) by payment outside Barbados, in foreign currency in an account held in a bank
outside Barbados with the written permission of the Central Bank of Barbados; or
(c) by payment in Barbados in Barbados currency from funds held in Barbados which
would be legally remittable from Barbados;
in computing the tax payable for that income year of such person, there shall be set off against
the tax payable on the taxable income of such person, a foreign currency earnings allowance,
calculated in the manner specified in the Fourth Schedule orFifth Schedule , as the case may
be.
Fourth Schedule. Fifth Schedule. 1998-31
(2) For the purposes of this section:G/SCM/Q3/BRB/9
Page 108
(a) "Common Market" has the meaning assigned to it by section 2 of the Fiscal
Incentives Act ;
(b) "foreign currency earnings" means the gross amount of foreign currency earnings
received from fees, rewards or payments from work performed in respect of
qualifying overseas construction projects or qualifying overseas professional services;
(c) "overseas" means the source of the investment outside the Common Market;
(d) "qualifying overseas construction projects" and "qualifying overseas professional
services" are such as are specified in Part III and Part IV, respectively, of the Second
Schedule .
Second Schedule
(3) The Minister may by order amend, vary or revoke the Second Schedule .
(4) Notwithstanding anything in this Act contained, a person may not qualify for concession
under this section and section 14A in respect of the same source of income.
Annual allowances in calculation of assessable income
13.(1) Where a person carrying on a business has made a capital expenditure on:
(a) Machinery or plant, other than equipment for scientific research, used in that
business; or
1983-21. (b) an industrial building or structure used or to be used in that business for some purpose
other than resale; or
(c) equipment for scientific research used in that business or in a field related to that
business; or
1998-43. (d) new machinery or plant used in the manufacturing sector;
hereafter referred to as depreciable property, then, in calculating the assessable income of that
person for an income year, an amount may, at the option of that person, be deducted as an
annual allowance equal to:
1981-15.
1998-43. (i) In the case of machinery or plant other than new machinery or plant for the
manufacturing sector or other than equipment for scientific research, such
percentage of the capital expenditure on that machinery or plant less any
amount received by that person as a rehabilitation grant as is just and
reasonable as representing the wear and tear in the income year on that
machinery or plant;
1983-21. 1998-43. (ii) in the case of an industrial building or structure used or to be used in that
business for some purpose other than resale, 4 per cent of that capital
expenditure after deducting therefrom the amount of any rehabilitation grant
made to that person in respect of that industrial building or structure;
1983-21. 1985-43. (iii) in the case of equipment for scientific research used in that business or in a
field related to that business, 20 per cent of that capital expenditure in theG/SCM/Q3/BRB/9
Page 109
income year in which the expenditure was incurred and in the four
immediately ensuing income years; or
1998-43. (iv) in the case of new machinery or plant purchased for the manufacturing sector,
such percentage of the capital expenditure on that machinery or plant as is
just and reasonable as representing wear and tear in the income year on that
machinery and plant, less any amount received by that person as a
rehabilitation grant;
on such depreciable property as is in use in the business at the end of that income
year.
(2) Repealed by 1981-15 .
1985-6
(3) Notwithstanding subsection (1), no annual allowance shall be made to a person for an income
year in respect of depreciable property if the total of:
(a) The amount, if any, received by that person as a rehabilitation grant; and
1985-6. (b) the total amount of initial and annual allowance made to that person in preceding
income years;
in respect of that depreciable property exceeds the capital expenditure made by that person on
that depreciable property.
1998-43
(3A) Subsection (3) shall not apply in the case of subparagraph (iv) of subsection (1) where the
total depreciable amount is equal to 150 per cent of the capital expenditure.
(4) Where a person received a rehabilitation grant in an income year in respect of depreciable
property after an initial allowance or an annual allowance has been made to that person in respect of
that depreciable property in a prior income year, then the difference between the total of the initial and
annual allowances made to that person in respect of that depreciable property in prior income years
and the total amount of the initial and annual allowances that would have been made to that person in
respect of that depreciable property in prior income years if the rehabilitation grant had been made
before any initial or annual allowances were made to that person in respect of that depreciable
property shall be included in calculating the assessable income of that person for that income year.
(5) Where depreciable property in respect of which an initial or annual allowances has been made
is sold, destroyed or otherwise permanently put out of use in an income year by the person to whom
the allowance was made, then:
(a) Where the sale, insurance, salvage or compensation moneys in respect of that
depreciable property exceed the diminished value of that depreciable property after
the appropriate allowances have been made for the preceding income year, the
amount of the excess to the extent that it does not exceed the total of:
(i) The amount of any initial allowance;
(ii) the total amounts of annual allowances; andG/SCM/Q3/BRB/9
Page 110
(iii) the amount of any balancing allowance, previously given to that person in
respect of that depreciable property, shall be included, as a balancing charge,
in calculating the assessable income of that person for that income year; and
(b) where the diminished value of that depreciable property after the appropriate
allowances have been made for the preceding income year exceeds the sale,
insurance, salvage or compensation moneys in respect of that depreciable property,
the amount of the excess shall be deducted, as a balancing allowance, in calculating
the assessable income of that person for that income year.
1981-15
(5A) The diminished value of depreciable property of a person is the amount determined by
deducting from the capital expenditure on that depreciable property:
(a) The amount, if any received by that person as rehabilitation grant;
(b) the amount of any initial allowance that was made to that person; and
(c) the total amount of annual allowances made to that person in the preceding income
years;
in respect of depreciable property.
(6) For the purposes of this section, where machinery or plant is leased by a lessor to a lessee
who is carrying on a business for use in that business, then this section shall apply to the person, either
the lessor or the lessee, on whom the burden of the wear and tear on that machinery or plant directly
falls, and:
(a) Where the burden falls directly on the lessee, that lessee shall be deemed to have
made a capital expenditure on that machinery or plant in an amount that is reasonable
having regard to the terms of the lease; and
(b) where the burden falls directly on the lessor:
(i) That lessor shall be deemed to have been using that machinery or plant in his
business; and
(ii) where the lease continues for part only of the income year, the annual
allowance for that income year shall be made but shall be proportionately
reduced.
(7) For the purposes of this section, where on the sale of depreciable property the buyer has
control of the seller, the seller has control of the buyer or another person has control of both the seller
and the buyer, the selling price of the depreciable property shall be deemed to be the price that the
depreciable property would have been sold for in the open market.
(8) For the purposes of this section, where on the sale of depreciable property the sole or main
benefit that might be expected to accrue to the buyer or seller or both is the obtaining of an allowance
under this section:
(a) The selling price of the depreciable property shall be deemed to be a price equal to
the diminished value of the depreciable property immediately before the sale; andG/SCM/Q3/BRB/9
Page 111
(b) the buyer shall not be entitled to an initial allowance in respect of that depreciable
property.
(9) For the purposes of this section, where a person succeeds to a business formerly carried on by
another person, any depreciable property used in the business both immediately before and
immediately after the succession takes place shall be deemed to have been sold by that other person to
that person succeeding at a price equal to the diminished value of the depreciable property
immediately before the succession took place, but the person so succeeding shall not be entitled to an
initial allowance in respect of that depreciable property.
Arrears of annual allowances. 1981-15
13A.(1)The diminished value of depreciable property acquired by a person prior to income year 1980,
shall be recalculated in accordance with section 13.
(2) The difference between the diminished values of depreciable property when recalculated by
virtue of subsection (1), referred to as "the arrears of annual allowances", may be deducted, subject to
this section, in computing the income from business by that person for the income year 1980 and
subsequent income years.
(3) The following amounts of arrears of annual allowances are deductible:
(a) Where the arrears of annual allowances do not exceed $50,000, the whole amount;
(b) where the arrears of annual allowance exceed $50,000 or an amount of arrears of
annual allowances that represent 25 per cent of the assessable income from the
business, whichever is the greater; provided that the amount claimed shall not exceed
the amount of the arrears of annual allowances available to be deducted.
(4) For the purpose of subsection (3), assessable income means the gross income in an income
year accruing to a person from business computed in accordance with this Act, but does not include a
deduction under this section.
(5) Subject to this section, any arrears of annual allowances that are not deducted in any income
year may be carried forward and deducted in subsequent income years.
Annual allowance on conversion of residential property. 1985-6
13B.1(1) Where a person has made a capital expenditure on a conversion described in section 12B
and referred to in this section as depreciable property, then, in calculating the assessable income of
that person, for an income year an amount may, at the option of that person, be deducted as an annual
allowance equal to 4 per cent of that capital expenditure.
(2) Notwithstanding subsection (1), no annual allowance shall be made to a person for an income
year in respect of the conversion referred to in section 12B if the total amount of initial and annual
allowances made to that person in the preceding years exceeds the capital expenditure made by the
person on the conversion.
(3) Subsections (5), (5A) and (7) of section 13 apply to depreciable property described in
section 12B.
1Section 13B applies to year of income 1984.G/SCM/Q3/BRB/9
Page 112
Certificate in support of claim. 1985-6
13C.1No claims under sections 12B and 13B may be entertained unless they are accompanied by a
certificate of the Chief Town Planner stating that the expenditure on which a claim is based is in
respect of a building that had been in existence before the conversion is effected.
Rules relating to annual allowances. 1983-21
14. For the purposes of sections 12 and 13:
(a) A capital expenditure on the purchase of land or on rights in and over land is not a
capital expenditure on machinery or plant or on other depreciable property;
1983-21 (aa) where expenditure in respect of a motor car exceeds $75,000, the excess is not a
capital expenditure on machinery or plant;
(ab) no allowance shall be made on capital expenditure for a building or structure except
on the certificate of the Industrial Development Corporation stating that such capital
expenditure is in respect of an industrial building or structure;
(b) a reference to any machinery or plant or to any other depreciable property includes a
reference to a part of that machinery or plant or other depreciable property, as the
case may be;
(c) a reference to the sale of machinery or plant or any other depreciable property
includes a reference to the sale of that machinery or plant or other depreciable
property together with other property;
(d) all property that is sold under one bargain shall be deemed to be sold together
notwithstanding that the form of the transaction is that there are separate sales of
separate pieces of property;
(e) where machinery or plant or other depreciable property is sold together with property
that is not depreciable property the amount that should reasonably be regarded as
being the relative value of that machinery or plant or other depreciable property, as
the case may be, shall be deemed to be the sale price of that machinery or plant or
other depreciable property, as the case may be;
(f) this section applies with the necessary modifications to the value of insurance,
salvage or compensation moneys as it applies to sales and sale prices; and
(g) this section applies with the necessary modifications to the exchange of property and
to the surrender of a leasehold interest for valuable consideration, as it applies to sales
and sale prices, and in particular with the modifications that a reference to the sale
price shall be deemed to be a reference to the value of the consideration for the
exchange or surrender and a reference to a capital sum included in the price shall be
deemed to be a reference to so much of the value of the consideration as would have
been a capital sum if it had taken the form of a monthly payment.
1Section 13C applies to year of income 1984.G/SCM/Q3/BRB/9
Page 113
Export allowance. 1974-11. 1986-2. 1987-26. First Schedule
14A.(1)Subject to section 14B, where a person has made export sales to a country other than a
country within the Common Market, in computing the tax payable for any income year of such person
there shall be set off for the purposes of collection against the tax payable on the taxable income of
such person, an export allowance calculated in the manner specified in the First Schedule , if the
person satisfies the Commissioner that the provisions of this section are applicable to it.
1990-27
(2) The following are entitled to the export allowance:
(a) The export of date processing services;
(b) the export of products of a company that purchases wholesale from a local producer
exclusively for export;
(c) the export of products of an industry or business, other than sugar in bulk or such
other product as the Minister declares by order to be a traditionally export-oriented
product.
(3) Repealed by 1986-2 .
(4) For the purposes of this section:
"Common Market" has the meaning assigned to it by section 2 of the Fiscal Incentives Act ;
"company" means a company registered in Barbados;
"industry" has the same meaning as in section 2 of the Fiscal Incentives Act .
Investment income. 1986-25. First Schedule
14A.1. (1) Where an enclave enterprise owned by persons who are not citizens of Barbados earns
income derived from the reinvestment of profits earned in Barbados, that enterprise shall, in
computing the tax payable in any income year on such income, be entitled to an allowance calculated
in accordance with section 14A in the manner specified in the First Schedule for calculation of export
allowance as if that income were export profits.
1986-25. Cap. 71A
(2) For the purposes of subsection (1) "enclave enterprise" has the meaning assigned to it by
section 2 of the Fiscal Incentives Act .
Non-application of section 14A. Cap. 71A
14B. Section 14A shall not apply to a company which is declared to be an approved enterprise for
the purposes of the Fiscal Incentives Act in respect of the period during which that company is
enjoying benefits under that Act.G/SCM/Q3/BRB/9
Page 114
DIVISION I
Calculation of Assessable Income: Miscellaneous Rules:
Special Persons
15. Repealed by 1980-12 .
Non-residents
16.(1) In calculating the assessable income of a non-resident person for an income year, income
derived from Barbados shall be included, income not derived from Barbados shall not be included and
no deductions or allowances in respect of the calculation of assessable income shall be made in
respect of income or the production of income not derived from Barbados.
1984-9
(2) For the purposes of subsection (1):
(a) "Income derived from Barbados" includes:
(i) Any amount payable or paid to a non-resident person by a person resident in
Barbados on account or in satisfaction of liability for fees or charges arising
under a contract for the provision of services, whether such contract is oral or
in writing and whether or not it is made in Barbados1; and
1985-6. (ii) amounts received from an office in Barbados or from employment exercised
therein under a contract of employment whether made within or outside
Barabdos2; and
(b) income from royalties is deemed to arise in Barbados where the use of or the right to
use a right or property occurs in Barbados.2
Persons resident but not domiciled
17. In calculating the assessable income for an income year of a resident person who during the
income year is not domiciled in Barbados, the following amounts and no others shall be included, that
is to say:
(a) Income derived from Barbados for that income year;
(b) income from an office in Barbados or employment exercised therein for the income
year whether or not the contract of employment was made in Barbados and whether
or not the employer is resident in Barbados2;
(c) income from other sources outside Barbados whenever derived to the extent that a
benefit is obtained in Barbados from that income in that income year in the form of a
remittance of money, an importation of property, the granting of credit by bank
overdraft or otherwise or in any other form whatever;
and no deductions or allowances in respect of the calculation of assessable income shall be
made in respect of income or the production of income not so included.
1Subsection (2)(a)(i) of section 16 applies to year of income 1970 and following.
2Subsection (2)(a)(ii) and (2)(b) of section 16 and section 17(b) apply to year of income 1984.G/SCM/Q3/BRB/9
Page 115
DIVISION J
Calculation of Assessable Income: Miscellaneous Rules:
Special Business
Business of operating ships or aircraft
18. In calculating the assessable income of a non-resident person for an income year, the income
of that person earned in Barbados from the operation of a ship or aircraft owned, chartered or operated
by him shall:
(a) Not be included, where the country or territory where that person resides grants
substantially similar relief throughout the income year to a person resident in
Barbados; or
(b) to be deemed to be 5 per cent of the amount payable to that person in respect of
passengers, livestock, mail and goods shipped at any port in Barbados, in any other
case.
Business insurance companies
19.(1) Each of the following businesses, namely:
(a) General insurance business;
(b) life insurance business; and
(c) registered retirement plan business;
carried on by an insurance company shall be deemed to be a separate business carried on by a
separate person for the purposes of this Act.
(2) In the case of the general insurance business of a resident insurance company, the assessable
income of the company shall be calculated in accordance with this Act as in the case of any other
resident company.
(3) In the case of the general insurance business of a non-resident insurance company, the
assessable income of the company for the income year is:
(a) The total of the gross premiums, interest and other income of the company received
or receivable in Barbados in the income year;
minus
1981-15 .(b) premiums returned to insured persons and premiums paid as reinsurances of the
income year;
minus
(c) the usual percentage reserve for unexpired risks adopted by the company in respect of
its total world operations at the end of the income year;
plusG/SCM/Q3/BRB/9
Page 116
(d) the usual percentage reserve for unexpired risks adopted by the company in respect of
its total world operations at the end of the preceding income year;
minus
(e) the total of:
(i) The actual losses less the amount for losses recovered under reinsurances;
(ii) the agency expenses in Barbados; and
(iii) a fair proportion of the head office expenses of the company;
in the income year.
1985-6
(4) In the case of the life insurance business of a resident insurance company, the assessable
income of the company for the income year is its gross investment income.
1985-6
(5) In the case of the life insurance business of a non-resident insurance company, the assessable
income of the company for the income year is:
(a) Its gross investment income; and
Cap. 310 (b) an amount deemed to be income calculated at the rate of 7 per cent of the shortfall in
the reserves held in the income year below the reserves required to be held in
Barbados in accordance with the Insurance Act or calculated on the amount of the
shortfall at the average rate of actual yield in investments for the year, whichever is
higher.
(6) Where the investment income of a business that is deemed by subsection (1) to be a separate
business carried on by a separate person cannot be determined because that business is carried on in
conjunction with another business that is deemed by subsection (1) to be separate business and the
investment income from those businesses is not separated in the books of the company carrying on
those businesses, the following rules shall apply:
(a) In the case of a resident company the investment income of each separate business is
that part of the investment income of the company that bears the same proportion to
the total investment income of the company as the premiums received or receivable in
respect of that separate business bears to the total premiums received or receivable by
the company, all calculated in respect of the income year; and
(b) in the case of a non-resident company:
(i) The Barbados investment income of the company is that part of the
investment income that bears the same proportion to the total investment
income of the company as the premiums received or receivable in Barbados
bear to the total premiums received or receivable by the company, all
calculated in respect of the income year; andG/SCM/Q3/BRB/9
Page 117
(ii) the investment income of each separate business is that part of the Barbados
investment income of the company that bears the same proportion to the
Barbados investment income of the company as the premiums received or
receivable in Barbados in respect of that separate business bear to the total
premiums received or receivable in Barbados, all calculated in respect of that
income year.
(7) Where any income, other than investment income, or any deduction or allowance of a
business that is deemed by subsection (1) to be a separate business carried on by a separate person
cannot be determined because that business is carried on in conjunction with another business that is
deemed by subsection (1) to be separate business and such income, deduction or allowance is not
separated in the books of the company carrying on those businesses, the amount of such income,
deduction or allowance attributable to that separate business, shall be the amount that is reasonable in
all the circumstances.
1985-6
(8) Subject to subsection (8A), a loss incurred in a business that is deemed by subsection (1) to be
a separate business carried on by a separate person may not be set off against the profits from any
other business but, with that exception and subject to the limitations imposed by section 23, may be
carried forward and set off against the profits of that separate business within the five succeeding
income years.
1985-6
(8A) Notwithstanding subsection (8), with effect from income year 1984, no loss incurred by the
life insurance business of an insurance company may be deducted from or set off against profits from
that or any other business.
1977-16
(9) In addition to the tax payable by virtue of section 44(1) on the taxable income of a company
deemed to be a separate person carrying on the life insurance business of an insurance company,
whose assessable income is for the purposes of the payment of such tax, calculated in accordance with
subsection (4) or (5) as the case may be, of this section, there shall be paid in respect of the income
year 1976 and every subsequent income year, a tax at the rate specified in section 44(2) on the
premium income of such company, computed in accordance with subsection (10).
1977-16. 1998-31
(10) The premium income on which tax is payable under subsection (9) shall be determined by
taking the gross premiums received by the company and deducting therefrom any premiums returned
to the assured and any premiums received in respect of reinsurances, all such premiums being in
respect of risks originating within Barbados.
1977-16
(11) For the purposes of this section a company shall be deemed to be carrying on life insurance
business notwithstanding that it has ceased to issue contracts of insurance, if it continues to collect
premiums on existing contracts of insurance.
1977-16. 1993-8
(12) The office, branch or agency of a non-resident company to which subsection (11) refers shall
deduct or withhold an amount from the premium income of such company at the rate specified inG/SCM/Q3/BRB/9
Page 118
paragraph (a), (b) or (c) of section 44(2) and shall pay the amount so deducted or withheld in monthly
remittances to the Commissioner, not later than the twenty-fifth day of each month, in respect of the
premium income for the preceding month.
1977-16. 1978-44.
(13) For the purposes of this section and sections 43 and 44:
Cap. 15 "Caribbean Community " has the meaning assigned to it by section 2 of the Caribbean
Community Act ;
1978-44 "foreign company" means in relation to payment of tax on premium income by a company
carrying on life insurance business or general insurance business of an insurance company a company
not being a resident company;
"gross investment income" means in relation to:
(a) A resident insurance company, its income from all sources excluding its premium
income; and
(b) a non-resident insurance company, its income derived from Barbados, excluding its
premium income;
"life insurance business" includes industrial life insurance business;
Cap. 310 "mutual company" has the meaning assigned to it by section 2 of the Insurance Act ;
1978-44 "resident company" means in relation to payment of tax on premium income by a company
carrying on life insurance business or general insurance business of an insurance company a company
incorporated in Barbados with not less than 51 per cent of its paid-up capital owned by persons
resident in Barbados or a mutual company incorporated in Barbados or such other company as the
Minister approves, incorporated in a member country of the Caribbean Community.
Business of associations of underwriters
20.(1) The business of underwriting policies of insurance, other than life insurance, carried on by an
association of underwriters shall be deemed to be a separate business carried on by a separate person,
for the purposes of this Act.
1978-44. 1986-2. 1991-9
(2) The assessable income of a person deemed by subsection (1) to be a separate person carrying
on a separate business for an income year is 30 per cent of the total amount of the gross premiums
other than reinsurance premiums derived from Barbados and payable in the income year on policies of
insurance underwritten by that person.
21. Repealed by 1986-2 .
Deductions and allowances for separate businesses. 1985-6
22.(1) Where a person is deemed by this Act to be a separate person carrying on a separate business
for the purposes of this Act with the result that such person is deemed to be two separate persons
carrying on two or more separate businesses for the purposes of this Act, in calculating the assessable
income or the taxable income of the two deemed separate persons no amount may be deducted, orG/SCM/Q3/BRB/9
Page 119
allowed to more than one of those deemed separate persons and the amounts deducted or allowed
shall be apportioned between those deemed separate persons in accordance with the determination of
the Commissioner.
1986-6
(2) Where a person is deemed to be a person carrying on separately life insurance and general
insurance businesses, then in calculating the person's assessable income from general insurance
business for an income year the amount deductible as commissions and management expenses when
combined, shall not exceed 60 per cent of the gross premium of the company for that year.
DIVISION K
Calculation of Assessable Income: Miscellaneous Rules:
Special Cases
Losses
23.(1) In calculating the assessable income of a person for an income year, a loss sustained by that
person in respect of any source of income in that year shall be deducted from the assessable income of
that person from all other sources in that income year.
(2) Where a loss has been sustained by a person in an income year in respect of a source of
income subject to tax under this Act and that loss exceeds the assessable income of that person from
all other sources whether within or outside Barbados in that income year, the amount of the excess
shall be carried forward and shall be deducted in computing the assessable income of that person in
ensuing income years, subject to the following rules, that is to say:
(a) Any loss carried forward shall be deducted in the next succeeding income year to the
full extent of the lesser of:
(i) The amount of the loss carried forward; or
(ii) the assessable income of that person for that next succeeding income year;
and, where the amount of the loss carried forward exceeds the assessable income of
that person for that next succeeding income year, only the amount of the excess shall
be carried forward further;
1986-2. 1988-19.
1990-2. (b) no loss or part of a loss shall be carried forward beyond the ninth income year
following the income year in which the loss was sustained; and
(c) where losses that may be carried forward are sustained in more than one income year
the losses shall be deducted in succeeding income years in the order in which the
losses are sustained.
1992-28
(3) For the purposes of this section, subsection (2) of section 24A, subsection (2) of section 24B
and subsection (2) of section 24C, for income year 1992 and subsequent income years, losses shall
first be:G/SCM/Q3/BRB/9
Page 120
Claim for group relief. 1996-5
23C.(1) A claim for group relief shall specify the following:
(a) The name of the claimant company;
(b) the accounting period for which relief is claimed by the claimant company;
(c) the name of the surrendering company;
(d) the accounting period for which relief is claimed by the surrendering company;
(e) the amount claimed in respect of the surrendering company; and
(f) the total amount of profits of the claimant company to be covered by group relief.
(2) A claim for group relief:
(a) Shall not be allowed unless the profits of the claimant company are first applied
against any previous years' losses of that company;
(b) need not be for the full amount available to the claimant company;
(c) shall require the consent of the surrendering company which shall be submitted to the
Commissioner in the form prescribed by the Commissioner;
(d) must be made within two years of the date of the end of the surrendering company's
accounting period to which the claim relates; and
(e) shall only be allowed by the Commissioner after all taxes due to the Crown and all
national insurance contributions have been satisfied by both the claimant company
and the surrendering company.
Losses which may be surrendered. 1996-5
23D.(1)Where a surrendering company incurs a trading loss of in an income year, the loss may be set
off against the total profits of the claimant company for the corresponding accounting periods of the
claimant company.
(2) The accounting period of a company, for the purpose of corporation tax, shall begin whenever
the company not then being within the charge to corporation tax comes within the charge, whether by
the company becoming resident in Barbados or acquiring a source of income, or otherwise.
(3) An accounting period of a company shall end for the purpose of corporation tax on the first
occurrence of any of the following:
(a) The expiration of 12 months from the beginning of the accounting period;
(b) the end of the fiscal period of the company; or
(c) the company ceasing to be within the charge to corporation tax.G/SCM/Q3/BRB/9
Page 121
Corresponding accounting periods. 1996-5
23E.(1) For the purposes of group relief an accounting period of the claimant company which falls
wholly or partly within an accounting period of the surrendering company corresponds to that
accounting period.
Third Schedule
(2) For the purposes of group relief an accounting period is calculated in the manner specified in
theThird Schedule .
Companies joining or leaving group. 1996-5
23F.(1) Group relief shall be given only if the surrendering company and the claimant company are
members of the same group throughout the whole of the surrendering company's accounting period to
which the claim relates and throughout the whole of the corresponding accounting period of the
claimant company.
(2) Where on any occasion two companies become or cease to be members of the same group
then for the purposes of subsection (4), it shall be assumed as respects each company that:
(a) On that occasion, unless a true accounting period of the company beings or ends then,
an accounting period of the company ends and a new one begins, the new accounting
period to end with the end of the true accounting period, unless before then there is a
further break under this subsection; and
(b) the losses of the true accounting period are apportioned to the component accounting
periods referred to in paragraph (a); and
(c) the amount of total profits for the true accounting period of the company against
which group relief may be allowed is also apportioned to the component accounting
periods.
(3) An apportionment under subsection (2) shall be on a time basis according to the respective
lengths of the component accounting periods except that, if it appears that that method would work
unreasonably or unjustly, such other methods shall be used as appears to the Commissioner just and
reasonable.
(4) Where the one company is the surrendering company and the other company is the claimant
company references in subsection (1) to accounting periods shall be so construed, so that if the
two companies are members of the same group in the surrendering company's accounting period, they
must under that section also be members of the same group in any corresponding accounting period of
the claimant company.
Relief obtainable once for the same amount. 1996-5
23G.(1)Relief shall not be given more than once in respect of the same amount, whether by giving it
group relief or by giving some other relief, in any accounting period, to the surrendering company, or
by giving group relief more than once.
(2) In accordance with subsection (1), two or more claimant companies cannot, in respect of any
one loss or other amount for which group relief may be given, and whatever their accounting periods
corresponding to that of the surrendering company, obtain in all more relief than could be obtained byG/SCM/Q3/BRB/9
Page 122
a single claimant company whose corresponding accounting period coincided with the accounting
period of the surrendering company.
Aggregate of claim. 1996-5
23H.(1)Subject to subsection (2), two or more claimant companies may make claims relating to the
same surrendering company, and to the same accounting period of that surrendering company.
(2) Notwithstanding subsection (1) where the claimant companies referred to in subsection (1)
make claims, the aggregate of the claims shall not exceed the amount of the loss surrendered by the
surrendering company.
Capital allowances. 1996-5
23I. A claimant company shall only be eligible to claim group relief where that company, has first
claimed all its available capital allowances.
Tax recovery. 1996-5
23J. Where the Commissioner discovers that any group relief which has been given is or has
become excessive, he may make an assessment to corporation tax in the amount which ought in his
opinion to be charged.
Exempt companies. 1996-5
23K. Group relief is not available to:
(a) Any company established under:
Cap. 77 (i) the International Business Companies Act ;
Cap. 308A. (ii) the Exempt Insurance Act ;
Cap. 318B (iii) the Societies With Restricted Liability Act ;
Cap. 325 (iv) the Offshore Banking Act ; or
Cap. 72. (b) any other company which has been granted tax concessions under any other
enactment with the exception of companies operating under the Hotel Aids Act ; or
1998-42.
1998-45. (c) any company that is an authorized or exempt mutual fund under the Mutual Funds
Act.
Profits and losses and distribution or charge on income vis-à-vis group relief. 1996-5. Cap. 73
23L.(1) A payment for group relief:
(a) Shall not be taken into account in computing profits or losses of either company for
corporation tax purposes; and
(b) shall not for the purposes of the Income Tax Act be regarded as a distribution or
charge on income.G/SCM/Q3/BRB/9
Page 123
(2) In subsection (1) a "payment for group relief" means a payment made by the claimant
company to the surrendering company in pursuance of an agreement between them as respects an
account surrendered by way of group relief, being payment not exceeding that amount.
Capital element of annuities
24.(1) In calculating the assessable income of a person for an income year, the capital element of a
payment under:
(a) An annuity paid under a will or trust; or
(b) a purchased annuity;
shall not be included.
(2) The capital element of a payment under an annuity paid under a will or trust is such part of
the payment as exceeds the recipient's share of the income of the estate or trust in the period in respect
of which the payment is made.
(3) The capital element of a payment under a purchased annuity shall be determined in
accordance with the following rules, that is to say:
(a) When the purchased annuity is payable for a term certain, the capital element of each
payment is that part of each payment that bears the same proportion to the amount of
the payment as the purchase price of, or value of the consideration for, the contract
bears to the total of the payment to be made under the contract; and
(b) where the purchased annuity is payable for life, whether or not a minimum term
certain, or a minimum total payment also forms a term of the contract, the capital
element of payment is that part of each payment that bears the same proportion to the
amount of the payment as the purchase price of, or value of the consideration for, the
contract bears to the total of the payments actuarially expected to be made under the
contract at the time the contract was made, calculated on the basis of the tables used
in determining the purchase price of, or value of the consideration for the contract, or,
where no such tables were used, on the basis of the most appropriate tables, with the
calculation being based on complete expectation of life.
Registered retirement plan contributions. 1992-28. 1996-30
24A.(1)In calculating the assessable income of a person for income year 1996 and subsequent income
years, there shall be deducted from his income that would, but for this subsection, form part of the
assessable income of that person the amounts contributed by that person, to a registered retirement
plan by deduction from emoluments or otherwise, in that income year, subject to the limitations
imposed by subsections (2) to (5).
(2) The maximum amount that may be deducted under subsection (1) by an employed person or a
self-employed person in an income year, in respect of contributions made by that person on his own
behalf, is:
(a) 15 per cent of the assessable income from the employment or the business of that
person, as the case may be, for that income year; or
1996-30. (b) $4,000;G/SCM/Q3/BRB/9
Page 124
whichever is the lesser.
(3) The maximum amount that may be deducted under subsection (1) in an income year,
expressed as a total of the amount that may be deducted by an employer in respect of contributions
made on behalf of an employee and the amount that may be deducted by that employee in respect of
contributions made by him in his own behalf, is an amount equal to 15 per cent of the pensionable
emoluments paid by the employer to that employee in that income year, and where the total amount
contributed by the employer in respect of an employee and by that employee on his own behalf, when
added together, exceeds that amount, the amount that may be deducted by the employer or by the
employee, as the case may be, is the amount that bears the same proportion to that 15 per cent as the
amount contributed by the employer or by the employee, as the case may be, bears to the total amount
contributed by both the employer and the employee.
(4) Where a registered retirement plan is first established and a special contribution is made
under the plan by an employer in order to provide benefits to his employees in respect of services
rendered before the establishment of that registered retirement plan, the entire amount of that special
contribution may not be deducted from the assessable income of the employer in computing his
taxable income for the income year in which the contribution was made but the amount of that special
contribution may be deducted in a number of equal parts over a period of years, not less than ten,
determined in each case by the Commissioner, from the assessable incomes of the employer for those
income years in calculating the taxable incomes of the employer for those income years, starting with
the income year in which the special contribution was made.
Annual payments to benevolent organizations. 1992-28
24B.(1) In calculating the assessable income of a person for income year 1992 and subsequent income
years there shall be deducted from the income of that person the amount of payments made by that
person in that income year under a settlement, where:
(a) The payments are made to a registered benevolent organization;
(b) the payments are made under a requirement of the settlement that such payments will
be made every year for a period of not less than three years; and
(c) the terms of the settlement cannot be modified or revoked by that person during that
period of not less than three years.
(2) The amount that shall be deducted under this section for an income year shall not exceed
10 per cent of the amount that would, but for this section, form part of the assessable income of that
person for that income year.
Payments to minors. 1993-8
24C.(1) Notwithstanding the provisions of section 25, in calculating the assessable income of an
individual for income year 1993 and subsequent income years, there shall be deducted from the
income of that individual the amount of payments made by the individual in that income year under a
settlement, where:
(a) The payments are made under a requirement of the settlement that such payments will
be made every year for a period of not less than three years;
(b) the terms of the settlement cannot be modified or revoked by that individual during
that period of not less than three years; andG/SCM/Q3/BRB/9
Page 125
Cap. 215 .(c) the beneficiary of the payments is a minor (within the meaning of the Minors Act )
who is not the child of the settlor.
Payments to incapacitated individuals. 1993-8
24D. In calculating the assessable income of an individual for income year 1993 and subsequent
income years, there shall be deducted from the income of that individual the amount of payments
made by the individual in that income year under a settlement, where:
(a) The payments are made under a requirement of the settlement that such payments will
be made every year for a period of not less than three years;
(b) the terms of the settlement cannot be modified or revoked by that individual during
that period of not less than three years; and
Cap. 215 . (c) the beneficiary of the payment is an individual other than a minor (within the
meaning of the Minors Act ) and is, by reason of old age or physical or mental
incapacity, unable to provide for himself.
(2) A settlor may make the deductions permitted by this section only during the minority of the
beneficiary.
Amount deductible for minors and incapacitated individuals. 1993-8
24E. The maximum amount that may be deducted under sections 24C and 24D shall not exceed in
the aggregate 5 per cent of the amount that would, but for these sections, form part of the assessable
income of the settlor for the income year.
Registered retirement savings plan contributions. 1998-30. 1998-43
24F.(1) In calculating the assessable income of a person for income year 1998 and subsequent income
years, there shall be deducted from the income that would but for this subsection, form part of the
assessable income of that person, the amounts contributed by that person to a registered retirement
savings plan by deductions from emoluments or otherwise in that income year, subject to the
limitations imposed by subsections (2) and (3).
(2) The maximum amount that may be deducted under subsection (1) by an employed person or a
self-employed person in an income year in respect of contributions made by that person on his own
behalf or on behalf of his spouse is:
(a) 15 per cent of the assessable income from the employment or the business of that
person, as the case may be, for that income year; or
(b) $4,000;
whichever is the lesser.
(3) A person who contributes to a registered retirement plan may also contribute to a registered
retirement savings plan and may be allowed to claim:
(a) A maximum of $6,000 in respect of both plans; or
(b) 15 per cent of the assessable income for the employment or business of that person, as
the case may be, for that income year;G/SCM/Q3/BRB/9
Page 126
whichever is the lesser.
Withdrawal of funds. 1998-30
24G.(1)A person who contributes to a registered retirement savings plan may make one withdrawal of
contributions for the plan for the purpose:
(a) Of acquiring the first dwelling-house for use by that person as a residence; or
(b) of acquiring jointly with the spouse of that person their first dwelling-house for use as
their residence.
(2) Where a person makes a withdrawal of contributions from a registered retirement savings
plan for a purpose other than that specified in subsection (1) those contributions withdrawn are subject
to withholding tax.
1969/109
(3) The amount of tax to be withheld shall be calculated in accordance with Regulation 6(5) of
theIncome Tax Regulations, 1969 .
Conditions attached to withdrawal of contributions. 1998-30
24H. The withdrawal of contributions referred to in section 24G is subject to the following
conditions:
(a) A person who withdraws contributions for the purpose of acquiring a first dwelling-
house for use as the residence of that person shall be a person who does not already
own a house;
(b) the maximum amount that a person referred to in section 24G may withdraw shall be
the lesser of 10 per cent of the purchase price of the house to be acquired or $25,000;
(c) where a person makes a withdrawal of contributions pursuant to section 24G and fails
to apply the total amount withdrawn towards the acquisition of a dwelling-house
within six months of the date of withdrawal, or after an extension granted by the
Commissioner, the amount withdrawn shall be included in computing the assessable
income of that person in the year in which the amount is withdrawn; and
(d) a person who makes a withdrawal of contributions for the purpose of acquiring a first
dwelling-house for use as the residence of that person shall only be permitted to make
a withdrawal of this purpose once.
Sale of home. 1998-30
24I.(1) Subject to subsection (2), where a person who has made a withdrawal of contributions for the
first-time acquisition of a dwelling-house for use as the residence of that person sells that house
within five years of the date of withdrawal of the contributions, the amount withdrawn shall be
included in computing the assessable income of that person in the year in which the house is sold.
(2) Notwithstanding subsection (1), where a person sells the dwelling-house referred to in
subsection (1) within five years of the date of withdrawal of contributions, and acquires another house
within six months of the sale of the first house, the amount of the contributions withdrawn shall not beG/SCM/Q3/BRB/9
Page 127
included in computing the income of that person unless the second house is disposed of within
five years of the withdrawal of the contributions.
Transfers to minors
25. Where a person transfers property or the income from property in such a way, whether
directly or indirectly, that a person who is a minor during that income year is beneficially entitled to
the income from that property, either immediately or in the future and whether contingently or
otherwise, then, for that income year and every subsequent income year until that in which the person
beneficially entitled to the income from the property becomes of full age or sooner dies, that income
shall be included in calculating the assessable income of the person who, transfers the property or the
income from property and shall not be included in calculating the assessable income of any other
person.
Conditional transfers in trust
26. Where a person transfers property to a trustee, in trust:
(a) Upon terms that the trust property or property substituted therefore shall revert to the
donor or to some other person to be determined by the donor at a date after the
transfer; or
(b) upon terms that during the lifetime of the donor no disposition or other dealing with
the trust property or property substituted therefore may be made without the consent
of the donor;
then the income from that property or property substituted therefore shall be included in
calculating the assessable income of the donor and shall not be included in calculating the
assessable income of any other person.
Controlled companies
27.(1) Where it appears that with a view to the avoidance or reduction of tax a company controlled
by not more than five persons has not distributed to its shareholders, as dividend, profits for an
income year which could be distributed without detriment to the company's existing business, such
profits shall be added to the distributed profits for that income year, if any, and, whether or not there
are distributed profits for that income year, shall be deemed to have been distributed in the same
manner as they would have been distributed if a dividend had been declared to the full amount of
those profits for that income year and shall be included accordingly in calculating the assessable
income of the shareholders for that income year.
(2) For the purposes of this section, in determining whether profits for an income year could be
distributed without detriment to the company's existing business, consideration shall be given not only
to the current requirements of the business but also to such other requirements as may be necessary
for the maintenance and development of that business.
(3) For the purposes of this section, amounts expended in the income year that would otherwise
be deductible in calculating the income of a company for an income year:
(a) In or towards payment for the business, undertaking or property which the company
was formed to acquire or which was the first business, undertaking or property
acquired by the company; orG/SCM/Q3/BRB/9
Page 128
(b) in redemption of repayment of any share, loan capital or debt, including any premium
on such share, loan capital or debt, issued or incurred in or towards payment for any
business, undertaking or property described in paragraph (a), or issued or incurred for
the purpose of raising money applied or to be applied towards payment therefor; or
(c) in meeting any obligations of the company in respect of the acquisition of any
business, undertaking or property described in paragraph (a); or
(d) in redemption or repayment of any share or loan capital or debt, including any
premium on such share or loan capital or debt, issued or incurred otherwise than for
adequate consideration; or
(e) in pursuance or in consequence of any artificial transaction;
shall be deemed not to have been expended and to have been retained to form part of the
profits for the income year that could be distributed without detriment to the company's
existing business.
(4) For the purposes of this section, share or loan capital or debt shall be deemed to be issued or
incurred otherwise than for adequate consideration if:
(a) It is issued or incurred for consideration the value of which to the company is
substantially less than the amount of the capital or debt, including any premium
thereon; or
(b) it is issued or incurred in or towards, or for the purpose of raising money applied or to
be applied in or towards, the redemption or repayment of any share or loan capital or
debt which itself was issued or incurred for such consideration as is mentioned in
paragraph (a) or which represents, directly or indirectly, any share or loan capital or
debt which itself was issued or incurred for such consideration;
and references in this subsection to money applied or to be applied for any purpose including
references to money applied or to be applied in or towards the replacement of that money.
(5) Any amount included in calculating the assessable income of a shareholder under this section
for an income year shall not be included in calculating the assessable income of a shareholder for a
subsequent income year if that amount is distributed in respect of that shareholding in that subsequent
income year.
(6) The provisions of section 65 apply with respect to an amount deemed to have distributed
under this section as if that amount was distributed as a dividend.
Loans to directors etc., of controlled companies. 1977-16
27A.(1)Subject to subsection (2) where after 1 January 1976 a controlled company otherwise than in
the ordinary course of its business which includes the lending of money, makes any loan or advances
any money to a person to whom this section refers, the amount of such loan or advance shall be
deemed to be income earned in the income year in which the loan or advance was made unless the
loan or advance is repaid within one year after the end of such income year, and it is established that
the repayment was not made as part of a series of loans and repayments.
(2) Subject to subsection (3), where in any income year a person to whom this section refers
repays any part of a loan or advance deemed to be income under subsection (1), relief shall be given
to such person by setting off against the tax payable on his taxable income for the year the taxG/SCM/Q3/BRB/9
Page 129
attributable to the proportionate part of the loan or advance which was included in his taxable income
for the year in which the loan or advance was deemed to be income.
(3) Relief under subsection (2) shall only be given in respect of repayments made within a period
not later than five years after the end of the income year in which the loan or advance was made.
(4) This section refers to:
Cap. 308 (a) A director or a shareholder of a controlled company or of another company connected
with it but shall not be applicable where the person to whom the loan is made is a
company incorporated or continued under the Companies Act and the loan is made at
existing commercial rates and on terms and conditions normally applicable to such
loans;
(b) a relative of any such director or shareholder;
(c) any other person on terms that such director, shareholder or relative indirectly
receives the equivalent of the loan or advance or part of it.
(5) For the purposes of this section:
"Controlled company" means a company to which section 27 applies;
"relative" includes a husband or wife.
Cap. 308
(6) Notwithstanding subsection (1), any amount added to the stated capital account maintained
for any shares pursuant to paragraph (b) of subsection (7) of section 31 of the Companies Act shall not
be treated as a loan or advance to a person to whom this section applies.
Winding-up
28.(1) Where on the winding-up, discontinuance or reorganization (whether by way of reduction of
capital or otherwise) of a company or the business of a company in an income year, it appears that the
company had in prior income years retained profits that could have been distributed without detriment
to the company's existing business, the aggregate of those retained profits shall be deemed to have
been distributed in that income year immediately before the winding-up, discontinuance or
reorganization (whether by way of reduction of capital or otherwise) in the same manner as they
would have been distributed if a dividend had been declared to the full amount of the aggregate of
those retained profits and shall be included accordingly in calculating the assessable income of the
shareholders for that income year.
(2) For the purposes of this section, in determining whether profits for an income year could have
been distributed without detriment to the company's existing business, consideration shall be given
not only to the then current requirements of the business but also to such other requirements as may
then have been necessary for the maintenance and development of that business.
(3) The provisions of section 65 apply with respect to an amount deemed to have been distributed
under this section as if that amount was distributed as a dividend.G/SCM/Q3/BRB/9
Page 130
Artificial transactions
29.(1) Where on a transaction of purchase and sale to which a person carrying on business in
Barbados is a party:
(a) The vendor controls the purchaser; or
(b) the purchaser controls the vendor; or
(c) the purchaser or the wife of the purchaser is a relative of the vendor or the wife of the
vendor;
with the effect that the transaction does not take place at arms' length and the price is other
than the fair market value, then, in calculating the assessable income of the vendor or the
purchaser from carrying on business in Barbados, the transaction shall be deemed to have
taken place at a price equal to the fair market value.
(2) Where the main purpose of a transaction is the artificial reduction of the assessable income of
a person, then, in calculating the assessable income of the persons participating in the transaction and
solely for the purposes of this Act and other enactments relating to income tax, that transaction shall
be disregarded or shall be deemed to be modified, whichever is more appropriate to achieve the effect
that the transaction no longer results in an artificial reduction of the assessable income of that person.
DIVISION L
Calculation of Income Tax: Postponed Benefit Deduction
National insurance contributions and severance payments. 1990-27. 1992-28
30.(1) In calculating the taxable income of a person for an income year, there shall subject to
subsection (4) be deducted from the assessable income of that person:
(a) Repealed by 1992-28 ;
(b) the amounts contributed by that person on behalf of his employees, in the case of an
employer;
Cap. 47. under the National Insurance and Social Security Act .
1971-24
(2) In calculating the taxable income of a person for an income year, there shall, subject to
subsection (3), be deducted from the assessable income of that person:
Cap. 355A (a) The amounts paid during the income year by that person as an employer to any of his
employees as severance payments under the Severance Payments Act , less the amount
of any rebates paid to him out of the Severance Fund under that Act;
Cap. 355A (b) the contributions paid during the income year by that person pursuant to section 25 of
theSeverance Payments Act .
(3) No deductions may be made under subsection (2) in the case of any person who ceases to
carry on business during the income year in which the payments referred to in paragraphs (a) and (b)
of subsection (2) were made.G/SCM/Q3/BRB/9
Page 131
1990-27. Cap. 47
(4) No deduction may be made under subsection (1) in respect of health service contributions
payable under Part IIA of the National Insurance and Social Security Act .
DIVISION M
Calculation of Income Tax: New Shares Purchased
in Public or Private Company
Sale of shares. 1993-8
31. Where an individual who, prior to the first day of July 1992, purchased new shares in a public
or private company, sells those shares within five years of the year in which they were purchased, any
deductions from the assessable income of that individual respecting those shares shall be brought back
into charge to tax in the year of sale.
32-35. Repealed by 1992-28 .
DIVISION N
Calculation of Income Tax: Medical Expenses Deduction
36. Repealed by 1992-28 .
DIVISION NA
Calculation of Taxable Income
Household Services
36A. Repealed by 1992-28 .
DIVISION NB
Calculation of Taxable Income: Associations
Cooperative societies. 1988-19. 1996-30. Cap. 378A
36B.(1) With effect from the income year 1996, in calculating the taxable income for an income year
of an individual, there shall be deducted from the assessable income of that individual, in respect of
total savings with cooperative societies registered under the Cooperative Societies Act :
(a) An amount not exceeding $6,000 of savings deposited by instalments during an initial
period of two consecutive income years;
(b) an amount not exceeding $3,000 of savings deposited by instalments, for each year
following the two-year period referred to in paragraph (a);
Cap. 378A if there has been no withdrawal from the amounts deposited, on the certificate to that effect of
an officer defined by section 2 of the Cooperative Societies Act .
(2) Where a person withdraws, within two years from the end of the initial period of
two consecutive income years or the end of a subsequent income year from a cooperative society an
amount in respect of which a deduction was made, the amount so withdrawn shall be brought back
into charge to tax in the year in which the withdrawal was made.G/SCM/Q3/BRB/9
Page 132
Associations. 1986-25.
36C. In calculating the taxable income for an income year of an individual, there shall be deducted
from the assessable income of that individual subscription paid:
Cap. 361 (a) To trade unions registered under the Trade Unions Act , by members thereof, up to a
limit in respect of each member of $240 annually;
(b) to statutory associations of employees, by members thereof, up to a limit in respect of
each member of $240 annually;
(c) to political parties represented in Parliament, by members of Parliament, up to a limit
in respect of each member of $5,000 annually or 10 per cent of salary;
whichever is the lesser.
DIVISION O
Calculation of Taxable Income: Amounts Deductible
in Respect of Owner Occupied Property
Home allowance. 1996-5
37.(1) In calculating the taxable income for an income year of an individual who owns and wholly
occupies residential property there shall be deducted from the assessable income of that individual an
amount paid up to $3,500 in respect of expenditure incurred jointly or severally for mortgage interest,
house repairs, renovations, energy-saving or water-saving devices.
(2) Where the residential property referred to in subsection (1) is jointly owned, the maximum
amount deductible in respect of that property for any income year is apportionable .
(3) Where part of the residential property to which subsection (1) refers is occupied by the owner
and the other part is let or offered for let, the amount deductible by virtue of that subsection that is
attributable to that part of the property that is occupied by the owner, shall be such amount and
computed in such manner as the Commissioner allows.
(4) A person who claims a deduction under section 12B or section 13B is not entitled to claim the
deductions allowed by virtue of this section.
(5) This section applies to and takes effect from income year 1996.
37A.-37A.1. Repealed by 1992-28 .
DIVISION OA
Calculation of Taxable Income: New Shares Purchased
in Public Company
Deduction respecting new shares. 1996-30
37B.(1) In calculating the taxable income for an income year of an individual who purchases shares in
public companies at a cost of not more than $10,000 in total, there shall be deducted from the
assessable income of that individual an amount equal to the cost of the shares.G/SCM/Q3/BRB/9
Page 133
Mutual funds: calculation of assessable income. 1998-42
37F.(1) In calculating the assessable income of a mutual fund for an income year, there shall be
deducted such part of its assessable income for that income year as is designated by the mutual fund
in respect of particular units, shares or other equity interests in the fund owned by a unit holder,
shareholder or other investor.
(2) The total of the amounts deductible under subsection (1) for an income year shall not exceed
the amount that would be the income of the fund for the year if not deductions were made under that
subsection.
(3) An amount designated shall not be included in computing the income of a taxpayer for the
income year in which such designation was made, unless a distribution of that amount to unit holders,
shareholders and other investors has been made.
DIVISION P
Calculation of Taxable Income: Dependant Deduction
38. Repealed by 1992-28 .
DIVISION PA
Calculation of Taxable Income: Basic Deduction
38A. Repealed by 1992-28 .
Allowances. 1992-28
38B.(1) In calculating the taxable income of an individual for an income year, there shall be deducted
from the assessable income of that individual such of the following amounts as are applicable, that is
to say:
1998-8 (a) Subject to paragraph (b), the amount of $15,000 in respect of income year 1998 and
subsequent income years;
1996-30
1998-8 (b) in the case of an individual who is 60 years of age or over and in receipt of a pension,
the amount of $30,000 in respect of income year 1998 and subsequent income years;
(c) in the case of an individual whose spouse during the year had no income and who
during that year either wholly supported his spouse, or whose spouse was habitually
living with him, $3,000 in respect of income year 1995 and subsequent income years;
(d) in the case of an individual who, during the income year, supported his child or the
child of his spouse:
(i) In respect of income year 1993, $500; and
(ii) in respect of income year 1994 and subsequent income years, $1,000;
in respect of each of not more than two children under the age of 18 years or who had attained
the age of 18 years but had not attained the age of 25 years at the end of the income year and
was during the income year receiving full-time instruction at an educational establishment.
(2) In calculating the taxable income of an individual, only one deduction may be made under
subsection (1) in respect of any person in respect of whom a deduction is made under that subsection.G/SCM/Q3/BRB/9
Page 134
(3) Where more than one individual is entitled to a deduction under subsection (1) in respect of
the same person in the same income year, the aggregate amount that may be deducted by those
individuals in respect of that person in that income year shall be the amount that one of those
individuals would be entitled to deduct but for this subsection in respect of that person, and the part of
that amount that each of those individuals may deduct in respect of that person in that income year
may be agreed between them and, failing agreement, shall be fixed by the Commissioner.
(4) No deduction may be made in calculating the taxable income of a married woman habitually
living with her husband in respect of the deductions allowed under subsection (1)(d) unless she
furnishes to the satisfaction of the Commissioner evidence of the fact of her husband's relinquishing
of his claim to those deductions.
(5) The amounts which may be deducted under subsection (1) in respect of a person mentioned in
subparagraph (i) or (ii) of paragraph (d) of that subsection shall not be reduced by any assessable
income of that person which:
(a) Is salary, wages, overtime remuneration, bonuses, commissions or an amount in
respect of services; and
(b) the Commissioner is satisfied is applied towards the cost of education of that person.
1993-8
(6) For income year 1995 and subsequent income years a married person may claim the
deduction allowed under subsection (1)(c) notwithstanding that his spouse has received income during
the income year arising out of payment of interest and dividends in amount not exceeding $800.
1993-8
(7) For income year 1995 and subsequent income years the spouse of a person whose income is
exempt from tax by virtue of section 9 or any other enactment is not entitled to claim the deduction
allowed under subsection (1)(c).
1993-8
(8) A individual who qualifies for a deduction under paragraph (b) of subsection (1) in respect of
income year 1992 is entitled for that income year either to the benefit of that deduction or to the
benefit of the permitted deductions for that income year for:
(i) Postponed benefits;
(ii) annual payments;
(iii) medical expenses;
(iv) household services;
(v) associations;
(vi) owner occupied property;
(vii) new shares in a public or private company or both;G/SCM/Q3/BRB/9
Page 135
(viii) rental of residential property; and
(x) dependants.
DIVISION Q
Calculation of Taxable Income: General Council
Deductions for non-residents. 1985-6. 1990-2. 1992-28.
39.(1) Subject to subsection (2), in calculating the taxable income of a non-resident person for an
income year, no deduction may be made under section 38B.
(2) In calculating the taxable income for an income year of a non-resident individual who is a
Commonwealth citizen throughout that income year, deductions shall be allowed under section 38B,
but the amounts deductible under that section shall be reduced so that the amount of tax payable is not
less than the amount which bears the same proportion to the amount which would be payable by that
individual if the tax were chargeable on his total income from all sources, both within and outside
Barbados, as the amount of his assessable income under this Act bears to the amount of his total
income from all sources.
DIVISION R
Miscellaneous Rules
Trust and estates
40.(1) For the purposes of this Act, a trust or estate, other than a unit trust, shall, in respect of the
trust or estate property and in respect of the income arising therefrom, be deemed to be a separate
individual.
(2) In calculating the assessable income of a trust or estate, other than a unit trust, for an income
year, there shall be deducted such part of the amount that would otherwise form its assessable income
for the income year as is payable to a beneficiary in that income year.
(3) For the purposes of this section and of paragraph (k) of section 8, an amount shall not be
considered to be payable in an income year unless it was paid in the year to the person to whom it was
payable or that person was entitled in that year to enforce payment thereof.
1992-28. 1993-8
(4) In calculating the taxable income of a trust or estate for an income year, no deduction shall be
made under section 36B, 36C or 38B.
Unit trusts
41.(1) For the purposes of this Act, a registered unit trust, shall be deemed to be a company resident
in Barbados and the person having an interest in the registered unit trust shall be deemed to be
shareholders in that company with the shareholdings of the persons having an interest in the registered
unit trust being deemed to be in the same proportion as their interests in the registered unit trust.
(2) For the purposes of this Act, the income of a registered trust for an income year shall be
deemed to have been distributed as a dividend at the following times, namely:
(a) Where the income was in fact distributed in that income year to the persons having
interests in the registered unit trust, on the date when the distribution was made; andG/SCM/Q3/BRB/9
Page 136
(b) where the income was not distributed in that income year to the persons having
interests in the registered unit trust, on the date when that income would have been
distributed if the earliest possible decision had been made under the terms of the trust
to distribute that income.
(3) No person shall carry on or purport to carry on the business of dealing in securities or any
other property whatsoever as manager or trustee or otherwise on behalf of a unit trust unless the unit
trust is a registered unit trust.
(4) No person shall in Barbados:
(a) Act as an agent or representative of; or
(b) invite or solicit any person to purchase an interest in; or
(c) publish or cause to be published an invitation to any person to purchase an interest in,
a unit trust which is not a registered unit trust.
DIVISION S
Rates of Tax
Rate of tax for individuals. 1992-28
42.(1) The tax payable by an individual on his taxable income for an income year is as follows:
(a) For income year 1992:
(i) 20 per cent of every complete dollar of taxable income up to and including
$15,000;
(ii) 30 per cent of every complete dollar of taxable income above $15,000 and up
to and including $25,000; and
(iii) 40 per cent of every complete dollar of taxable income above $25,000; and
(b) for income year 1993 and subsequent income years:
(i) 25 per cent of every complete dollar of taxable income up to and including
$24,200; and
(ii) 40 per cent of every complete dollar of taxable income above $24,200.
(2) Notwithstanding subsection (1), where the tax that would be payable by an individual for an
income year is less than $1, no tax is payable by that individual for that income year.
Rates of tax for companies generally. 1992-28
43.(1) Subject to this Act, with effect from 1 July 1992 and for income year 1993 and subsequent
income years the tax payable by a company upon its taxable income is 40 per cent of every complete
dollar of such taxable income.G/SCM/Q3/BRB/9
Page 137
(2) Where a company's fiscal period ends at any time during the period 1 July 1992 to
31 December 1992 the tax payable by such a company shall be calculated on its taxable income for
income year 1992 apportioned on the basis of the number of months of that fiscal period falling within
the period immediately preceding 1 July 1992 and the number of months of the company's fiscal
period falling within 1 July 1992 to 31 December 1992.
(3) For the avoidance of doubt it is hereby declared that the tax payable by a company in respect
of its taxable income derived during any part of the fiscal period immediately preceding the first day
of July 1992 is 35 per cent of every complete dollar of such taxable income.
Rates of tax on companies' general insurance business. 1978-44
43A.(1)In addition to the tax payable under section 43 by a company other than a company that is
deemed to be a separate person carrying on the life insurance business of an insurance company, there
shall be paid by such company in respect of the income year 1978 and every subsequent income year
a tax as specified in subsection (2).
1993-8
(2) Notwithstanding section 43, the rate of tax payable by a company carrying on general
insurance business shall be as follows:
(a) In respect of a company carrying on property insurance business 5 per cent of the
gross direct premium in respect of resident and non-resident insurers; and
(b) in respect of a company carrying on insurance business other than property insurance
3 per cent in respect of resident and non-resident insurers.
1998-31
(3) This section applies only to insurance business written in Barbados in respect of which the
risks originate within Barbados, and the tax thereon shall be paid not later than 30 June in the year
following the income year in respect of which the tax is payable.
(4) For the purposes of this section:
1983-21 ."gross direct premium" means the aggregate of all direct premiums collected or collectible
from insured person but does not include premiums received consequent upon the acceptance
of reinsurance business;
Cap. 310. "property insurance business" has the meaning assigned to it by section 2 of the Insurance
Act.
Rate of tax for insurance companies. 1992-28
44.(1) Notwithstanding section 43 but subject to subsection (2), the rate of tax payable by a
company that is deemed to be a separate person carrying on life insurance business of an insurance
company whose assessable income is for the purposes of tax payable under this subsection, calculated
in accordance with subsection (4) or (5), as the case may be, of section 19, upon its taxable income for
an income year is 5 per cent of every complete dollar of such taxable income.G/SCM/Q3/BRB/9
Page 138
1993-8
(2) The additional tax payable by a company deemed to be a separate person carrying on the life
insurance business of an insurance company shall be:
(a) In the case of a resident or foreign company, at the rate of 5 per cent of the gross
direct premium income on new business written by the company for the income year;
(b) in the case of a resident company, at the rate of 3 per cent of the gross direct premium
income of the company for renewal business for the income year; and
(c) in the case of a foreign company, at the rate of 5 per cent of the gross direct premium
income of the company for renewal business for the income year.
Rate of tax for associations of underwriters. 1978-44. 1991-9
45. Notwithstanding sections 42, 43 or 44, the tax payable by an association of underwriters that
is deemed by section 20 to be a separate person carrying on a separate business for an income year is
as from 1 July 1992, 40 per cent of every complete dollar of the taxable income of that separate
person for that income year.
46-46A. Repealed by 1986-2 .
Rate of tax for Government securities. 1971-42. 1972-9. 1986-2. 1996-5
46B. Notwithstanding sections 42 to 45, the tax payable by a person upon any part of his taxable
income which is interest on securities of the Government, whether issued before or after
17 January 19721, for an income year shall not exceed 12.5 per cent of every complete dollar of that
part of his taxable income.
46C. Repealed by 1985-6 .
DIVISION T
Special Taxes
Returns of contributions under registered retirement plans
47. Where an individual receives in an income year a lump sum payment as a return of
contributions under a registered retirement plan, then, notwithstanding paragraph (g) of section 8, he
may elect that the amount of such payment shall not be included in calculating his assessable income
for that income year, and where he so elects he shall pay an additional tax in respect of that income
year equal to that part of the amount of such payment as bears the same proportion to the amount of
such payment as the total amount of tax payable under this Act by that person for the three preceding
income years bears to the total of the assessable incomes of that person for the three preceding income
years.
Amounts deemed received on winding-up etc.
48. Where a shareholder is deemed to have received an income year an amount on a deemed
distribution of the aggregate of retained profits under section 28, then, notwithstanding section 28, he
may elect that such amount shall not be included in calculating his assessable income for that income
year, and where he so elects he shall pay on such amount an additional tax in respect of that income
year at a rate equal to the average of the highest rates payable by him on his taxable income during the
three preceding income years.G/SCM/Q3/BRB/9
Page 139
Bonus converted into shares. 1980-12. 1986-2
48A. Tax is payable by the vendor of shares to which paragraphs (l) and (m) of section 8 refer, at
the highest rate payable by the vendor on his taxable income for the year in which the shares are sold.
Withholding tax on interest received by individuals and companies. 1993-8
48B.(1) Notwithstanding the provisions of section 42, the tax withheld and paid in the manner
provided for in section 64C is payment in full of that tax on the interest of a resident individual.
(2) For the avoidance of doubt it is hereby declared that subsection (1) does not apply to an
individual engaged in the business of money lending, and tax withheld under section 64C in relation
to such individual or a company is a prepayment of the tax of such individual or company.
Withholding tax on dividends received by individuals. 1993-8
48C. Notwithstanding the provisions of section 42, the tax withheld and paid in the manner
provided for in section 65(4A) is payment in full of the tax in respect of the income represented by the
dividends of a resident individual.
PART III
Administration and Enforcement
DIVISION U
Staff and Secrecy
Commissioner and staff
49.(1) The Commissioner shall administer and enforce this Act and other laws relating to income tax
and shall control and supervise all persons employed to assist him in the administration and
enforcement of this Act and those laws.
(2) The Commissioner and such other officers and employees as are necessary to administer and
enforce this Act and other laws relating to income tax shall be public officers.
(3)1Any function conferred by this Act on the Commissioner is exercisable by any public officer
authorized by the Commissioner for the purpose.
Administration of oaths
50. The Commissioner and any officer or other person employed to administer and enforce this
Act and other laws relating to income tax who is specifically designated by the Commissioner for that
purpose may, for a purpose connected with the administration or enforcement of this Act or those
laws, administer oaths and take and receive affidavits, declarations and affirmations, and such oaths,
affidavits, declaration and affirmations shall be of the same force and effect as if administered, taken
or received by a Justice of the Peace.
Secrecy
51. The Commissioner, the members of the Income Tax Appeal Board, and the officers and other
persons employed to administer and enforce this Act and other laws relating to income tax shall:
1The effective date is 16 May 1983.G/SCM/Q3/BRB/9
Page 140
(a) Maintain and aid in maintaining the secrecy of all matters relating to this Act and
other laws relating to income tax which come to their knowledge and shall not
communicate any such matters to any person except for the purpose of administering
or enforcing this Act or any other law of Barbados; and
(b) before they begin to perform any duty in relation to their office or employment, take
and subscribe the prescribed oath of fidelity and secrecy.
DIVISION V
Returns of Income
Returns of income and estimate of tax. 1975-8
52.(1) Every company and every other person who has carried on a business in an income year,
whether or not an assessable income has been derived by that person in that income year, shall deliver
to the Commissioner a return of his assessable income for that income year together with such
additional information as is prescribed, all in the prescribed form on or before:
1990-2. (a) In the case of a company whose fiscal period ends at any time during the period:
(i) 1 January to 30 September in any year (both dates inclusive), in respect of
income year 1990 and every subsequent income year, 15 March;
(ii) 1 October to 31 December in any year (both dates inclusive), in respect of
income year 1990 and every subsequent income year, 15 June; and
(b) in the case of any other person, 30 April;
in the year following that income year or within such further period as the Commissioner may
in writing allow on a written application made to the Commissioner before the date prescribed
by this section in such following income year.
(2) Every person who is not required to file a return of his assessable income for an income year
under subsection (1) and who was in that income year:
(a) An owner of land;
(b) an owner of property other than land, from which an assessable income was derived;
(c) a trust or estate;
1992-28. (d) an individual whose spouse had no income or had the income described in
section 38B(6) for income year 1995 and subsequent income years; and
(i) Who wholly supported his spouse; or
(ii) whose spouse was habitually living with him, and whose assessable income
from employment exceeded $15,000; and
1998-8. (e) an individual, other than an individual described in paragraph (d), whose assessable
income from employment exceeded $15,000; andG/SCM/Q3/BRB/9
Page 141
1992-28.
1998-8. (f) an individual referred to in paragraph (b) of subsection (1) of section 38B whose
assessable income exceeds $30,000 with effect from income year 1998;
shall deliver to the Commissioner a return of his assessable income for that income year
together with such additional information as is prescribed, all in prescribed form, on or before
30 April in the year following that income year.
(3) Where a business is carried on by two or more persons jointly, the partner who is resident in
Barbados and who is named in the written partnership agreement before any other partner who is
resident in Barbados or, where there is not written partnership agreement, the oldest partner who is
resident in Barbados, shall deliver to the Commissioner a return of the assessable income of the
partnership for an income year together with such additional information as is prescribed and
including a statement of the names and addresses of all the partners in that income year and a
statement of the share of the assessable income of the partnership to which each partner is entitled, all
in prescribed form, on or before 30 April in the year following that income year or within such further
period as the Commissioner may in writing allow on a written application made to the Commissioner
before 30 April in such following year.
(4) A return of assessable income purporting to be made by or on behalf of any person shall for
all purposes be deemed to have been made by that person or by his authority, as the case may be,
unless the contrary is proved.
(5) Every company and every other person required by this section to file a return of his
assessable income for an income year shall, in such return, in accordance with this Act:
(a) Set out the deductions from assessable income that he wishes to claim;
(b) calculate his taxable income; and
(c) estimate the amount of tax payable by him.
DIVISION W
Assessments
Assessments
53.(1) The Commissioner shall determine the assessable income and taxable income for an income
year of every person by whom tax is payable for that income year and shall assess the amount of tax
payable for that income year by each such person.
(2) The Commissioner shall make an assessment under subsection (1) notwithstanding that no
return of income has been delivered by the person liable to assessment under that subsection.
(3) In making an assessment under subsection (1), the Commissioner is not bound by the
information contained in a return delivered by the person being assessed or by other information
supplied, by, on behalf of, or, in respect of that person.
Reassessments
54.(1) After an assessment has been made in respect of a person for an income year, the
Commissioner may make a reassessment of the amount of tax payable by that person in respect of that
income year:G/SCM/Q3/BRB/9
Page 142
(a) At any time, where the person has made any misrepresentation or has failed to
disclose any material fact in making the return or in supplying information required to
be supplied in accordance with this Act; or
1986-2.
1990-2. (b) within nine years after the end of that income year, in any other case.
(2) Where an assessment or reassessment has been the subject of an appeal to the Income Tax
Appeal Board or the High Court, no reassessment may be made in respect of that person for that
income year unless that person has made a misrepresentation or has failed to disclose any material
fact in making his return or in supplying information required to be supplied in accordance with this
Act.
Notices of assessments
55. After making an assessment or reassessment in respect of a person for an income year, the
Commissioner shall deliver a notice of assessment or notice of reassessment to that person showing
the amount of tax payable by that person in respect of that income year.
Finality of assessments
56. Subject only to a reassessment on objection or otherwise or to a settled assessment or final
assessment on appeal under this Act, an assessment or reassessment shall be final and binding
notwithstanding any defect or omission therein or in any proceeding under this Act relating thereto.
DIVISION X
Objections
57.(1) A person who disputes his assessment or any part thereof may object to the assessment within
21 days after the date of the notice of assessment or notice of reassessment, as the case may be, by
delivering to the Commissioner a notice of objection.
(2) A notice of objection shall be in writing and shall, as far as possible, state the precise grounds
of objection to the assessment.
(3) As soon as conveniently possible after receipt of a notice of objection, the Commissioner
shall give the person who objects to the assessment an opportunity to support his objection by a
written or oral submission to the Commissioner and thereafter the Commissioner shall review the
assessment and shall either confirm the assessment or make a reassessment.
(4) As soon as the Commissioner has either confirmed the assessment or made a reassessment, he
shall deliver to the person who has objected to the assessment a notice of confirmation or a notice of
reassessment, as the case may be.
(5) Where a person has objected to an assessment and has received a notice of confirmation or a
notice of reassessment, he may not object further to the Commissioner in respect of that assessment as
confirmed or that reassessment.
(6) Where there is adequate reason why the time-limits established by this section could not
reasonably be complied with, the Commissioner may extend the time-limits established by this
section for a fixed period to be determined by him.
(d) The Chairman of the Board may summons any witness and require him to give
evidence on oath or otherwise and to produce such documents or things in hisG/SCM/Q3/BRB/9
Page 143
possession or control as the Chairman considers may be of assistance in reaching a
decision;
(e) subject to this section and to any rules with regard to the Board, the Chairman of the
Board may determine the procedure to be followed in appeals; and
(f) the Board has no powers to award costs.
(7) Where the members of the Income Tax Appeal Board who are hearing an appeal are not
unanimous in their decision the decision of the majority of those members is the decision of the
Board.
(8) The Income Tax Appeal Board shall, by order:
(a) Confirm the assessment or reassessment appealed from; or
(b) refer the assessment back to the Commissioner with directions for making a settled
assessment;
and the Secretary shall transmit one copy of the order to the appellant and one copy of the
order to the Commissioner, in each case together with a written statement of the reasons for
the Board's decision.
(9) Where the Income Tax Appeal Board has referred an assessment or reassessment back to the
Commissioner with directions for making a settled assessment, the Commissioner shall make a settled
assessment in accordance with those directions and shall deliver to the appellant a notice of settled
assessment.
(10) If an appellant believes that a notice of settled assessment is not in accordance with the
directions of the Income Tax Appeal Board, he may apply to the Chairman of the Board who shall, by
order, determine the content of the notice of settled assessment which shall then be delivered by the
Commissioner to the appellant.
Appeals to High Court
60.(1) Any person:
(a) Who has objected to an assessment and who has received a notice of confirmation or
notice of reassessment; or
(b) who has appealed to the Income Tax Appeal Board and:
(i) Who has received a notice of settled assessment; or
(ii) whose assessment or reassessment has been confirmed by the Board;
may appeal from the decision of the Commissioner or the decision of the Board, as the case
may be, to the High Court within 30 days after the date when the notice of confirmation or
notice of reassessment was delivered to him or within 30 days after the notice of settled
assessment was delivered to him, or the assessment or reassessment was confirmed by the
Board, as the case may be.
(2) The Commissioner may appeal from the decision contained in an order of the Income Tax
Appeal Board to the High Court within 30 days after the making of the order.G/SCM/Q3/BRB/9
Page 144
Cap. 73
(3) An appeal to the High Court shall be instituted by summons to be designated an income tax
assessment summons entitled in the matter of the Income Tax Act and in the matter of the assessment
of the person whose assessment is in dispute, naming him, for a certain income year, designating it.
(4) Every income tax assessment summons shall contain particulars, shortly stated, of the
assessment that is in dispute.
(5) Every income tax assessment summons shall be returnable within 14 days and shall be served
on:
(a) The Commissioner or the person whose assessment is in issue, as the case may be;
and
(b) on the Secretary of the Income Tax Appeal Board in the case of an appeal from a
decision of that Board;
and where an income tax assessment summons is served on the Secretary of the Income Tax
Appeal Board the Secretary shall within 14 days of the date of service of such summons transmit to
the Registrar of the Supreme Court a record of the proceedings before the Board including a statement
of the reasons for the Board's decision.
(6) Subject to this Act, the Rules of the Supreme Court applicable in respect of proceedings by
way of originating summons shall apply with such modifications as are necessary in respect of
proceedings on an income tax assessment summons.
(7) The proceedings on an income tax assessment summons and on all matters and things
incidental and ancillary thereto shall be had and taken in the same manner, and the powers of the
Judge and the Registrar shall be the same as in a trial in an action in the High Court.
(8) Notwithstanding subsection (7) in any proceedings on an income tax assessment summons:
(a) The hearing shall be in camera unless the person whose assessment is in issue
requests that the hearing be held in open court and in such case the hearing shall be
held in open court; and
(b) the onus of proof shall be on the appellant.
(9) At the conclusion of the proceedings on an income tax assessment summons, the High Court
shall by order:
(a) Confirm the assessment or reassessment in issue; or
(b) refer the assessment or reassessment back to the Commissioner with directions for
making a final assessment.
(10) Where the High Court has referred an assessment or reassessment back to the Commissioner
with directions for making a final assessment, the Commissioner shall make a final assessment in
accordance with those directions and shall deliver to the person whose assessment was in issue a
notice of final assessment.G/SCM/Q3/BRB/9
Page 145
(11) If a person whose assessment was in issue on an income tax assessment summons believes
that the notice of final assessment is not in accordance with the directions of the High Court, he may
apply, in chambers, to the Judge who made the order of the Court, or if that Judge cannot hear the
application, to any other Judge, for an order determining the content of the notice of final assessment
which shall then be delivered by the Commissioner to that person.
Appeals to Court of Appeal and on point of law of Privy Council
61.(1) Either the Commissioner or any person whose assessment was in issue on an income tax
assessment summons may appeal from the decision of the High Court to the Court of Appeal and
every such appeal shall be made within the time and in the manner laid down by an enactment or rules
of court for the purposes of appeals from the High Court to the Court of Appeal and shall be subject in
all respects to the law relating to such appeals.
(2) An appeal on a point of law only shall lie as of right to Her Majesty in Council from any
decision of the Court of Appeal under this section.
Time-limits
62. Where there is adequate reason why the time-limits in respect of appeals to the Income Tax
Appeal Board or in respect of appeals to the High Court could not be complied with, the Chairman of
the Income Tax Appeal Board or a Judge of the High Court, as the case may be, may extend those
time-limits for a fixed period, to be determined by him.
Finality of appealed assessments
63. Subject to paragraph (a) of subsection (1) of section 54 and to section 61:
(a) A final assessment or an assessment confirmed by the High Court; and
(b) subject also to an appeal to the High Court, a settled assessment or an assessment
confirmed by the Income Tax Appeal Board;
shall be final and binding, and, except in proceedings on appeal under this Act, shall not be
questioned in any court or in any proceedings.
DIVISION Z
Payment
Prepayment by deductions
64.(1) Every person paying to any other person:
(a) A salary or wages; or
1992-28. (b) retirement plan benefits, retiring allowances or other benefits included as assessable
income by virtue of section 8(f); or
(c) Repealed by 1986-25 ;
1998-30. (d) amounts in respect of a registered retirement plan, as:
(i) A return of contributions; orG/SCM/Q3/BRB/9
Page 146
(ii) benefits received out of or under that plan; or
(e) any other emoluments;
and every other person paying to a non-resident person:
(i) Interest; or
(ii) rents; or
(iii) maintenance; or
1998-42. (iv) dividends from profits that are exempt from tax or have not been taxed, other
than dividends paid to a non-resident person:
1998-45. (A) in respect of shares issued by a mutual fund under the Mutuals Fund
Act; or
Cap. 83, 74, 75, 76. (B) with respect to whom the Commissioner has issued a certificate that
the non-resident is exempt from income tax on such dividend under
thePioneer Industries Act or the Industrial Development (Export
Industries) Act or the Industrial Incentives Act , or the Industrial
Incentives (Factory Construction) Act ; or
1993-8. (v) an amount that may be deducted by the person making the payment under
sections 24C and 24D in calculating his assessable income; or
1970-33. (vi) an amount on account or in satisfaction of liability for fees or charges arising
under a contract for the provision of management or administrative services
or of technical or managerial skills, whether such contract be oral or in
writing and whether or not made in Barbados; or
1985-6 . (vii) royalties;
shall deduct or withhold therefrom such amount as is prescribed, and shall at such time as is
prescribed pay the amount so deducted or withheld to the Commissioner as a prepayment of
tax of the person to whom that amount would otherwise have been paid.
1984-9
(1A) For the purposes of subparagraph (vi) of subsection (1)(e), tax shall be deducted or withheld
whether or not the fees or charges to which that subparagraph refers have been paid.
1985-6
(1B) For the purposes of items (i), (vi) and (vii) of subsection (1)(e), the tax required to be prepaid
by virtue of this section constitutes payment in full of the tax due on the income described in those
terms, of the non-resident person.
(2) Where an amount has been deducted or withheld under subsection (1), the person who would
otherwise have received that amount shall be deemed for all purposes of this Act to have received that
amount on the date when it would have been received if it had not been deducted or withheld.G/SCM/Q3/BRB/9
Page 147
(3) An amount deducted or withheld by a person under subsection (1) shall be held in trust for the
Crown by that person and shall be kept separate and apart from his other assets by that person and
shall not be subject to attachment in respect of any debt or liability of that person, and in event of any
liquidation, assignment or bankruptcy that amount shall not form a part of the estate in liquidation,
assignment, or bankruptcy.
(4) The payment of an amount to the Commissioner under subsection (1) operates as a discharge
of any liability on the part of the person deducting or withholding that amount to the person from
whom the amount was deducted or withheld.
1990-27
(5) Nothing in subsection (1)(e)(vi) or (1B) shall apply where a professional accounting firm
carrying on business in Barbados pays to its associate firm outside Barbados an amount on account or
in satisfaction of liability for fees or charges for providing professional services in assisting the firm
in Barbados in servicing the international, financial and business sector.
Prepayment by deduction from interest on Government securities. 1971-42. 1996-5
64A. The Accountant-General and the Governor of the Central Bank shall, unless the
Commissioner otherwise directs, deduct or withhold tax at the rate of 12.5 per cent from any amount
paid by him to any person as interest on securities of the Government and within 30 days of so doing,
notify the particulars thereof to the Commissioner.
Prepayment of tax by companies and individuals carrying on business or in receipt of rents. 1975-8.
1990-2
64B.(1) Subject to subsections (3) to (6):
(a) Every company whose fiscal period ends at any time during the period 1 January to
30 September in any year (both dates inclusive) shall pay to the Commissioner as a
prepayment of tax:
(i) In respect of the income year 1990, an amount equal to 50 per cent of the tax
paid or payable on its total taxable income as disclosed in its return filed in
accordance with section 52 in respect of the preceding income year not later
than 15 September 1990;
(ii) in respect of the income year 1991 and every subsequent income year, an
amount equal to 50 per cent of the tax paid or payable on its total taxable
income as disclosed in its return filed in accordance with section 52 in respect
of the preceding income year not later than 15 September in that income year;
and
(b) every company whose fiscal period ends at any time during the period 1 October to
31 December in any year (both dates inclusive) shall pay to the Commissioner as a
prepayment of tax:
(i) In respect of the income year 1990:
(A) An amount equal to 50 per cent of the tax paid or payable on its total
taxable income as disclosed in its return filed in accordance with
section 52 in respect of the preceding income year not later than
15 December 1990; andG/SCM/Q3/BRB/9
Page 148
(B) an amount equal to that mentioned in subparagraph (i)(A) not later
than 15 March 1991.
(ii) in respect of the income year 1991 and every subsequent income year:
(A) An amount equal to 50 per cent of the tax paid or payable on its total
taxable income as disclosed in its return filed in accordance with
section 52 in respect of the preceding income year not later than
15 December in that income year; and
(B) an amount equal to that mentioned in subparagraph (ii)(A) not later
than 15 March in the following income year.
(2) Subject to subsections (3) to (7), every individual who carries on a business or is, on his own
account, in receipt of rents shall pay to the Commissioner as a prepayment of tax in respect of the
income year 1975 and every subsequent income year, three instalments each of an amount equal to
25 per cent of the tax paid or payable by him in respect of the preceding income year and in each case,
not later than 15 June, 15 September and 15 December in that income year.
(3) Where in any income year:
(a) A company begins to carry on business; or
(b) an individuals begins to carry on business or to receive, for his own account, rents;
that company, or individual shall, not later than 30 days before the date on which prepayment
of the first instalment of tax payable in respect of that income year is due, apply in writing to
the Commissioner for a determination of the amount of the instalments payable under
subsection (1) or (2).
(4) The Commissioner may estimate the amount of tax payable under this section by a company
or an individual where that company or individual fails to file a return as required by section 52 for
the preceding income year, and upon making a demand in writing of that company or individual for
the prepayment of the amount so estimated, subsection (1) or (2) shall apply, as the case may be, as if
the amount so estimated was the estimate of that company or individual.
(5) Where a company or an individual mentioned in subsection (2):
(a) Was not liable to tax in the year preceding the income year;
(b) is of opinion that the taxable income in respect of the current income year may be less
than the taxable income for the preceding income year;
that company or individual shall, not later than 30 days before the date on which prepayment
of the first instalment of tax is due under that subsection, apply in writing to the
Commissioner for a determination or reduction, as the case may be, of the amount of the
instalments payable under subsection (1) or (2).
(6) On an application under subsection (3) or (5), the Commissioner may:
(a) In the case of an application under subsection (3) or under paragraph (a) of
subsection (5), determine; orG/SCM/Q3/BRB/9
Page 149
(b) in the case of an application under paragraph (b) of subsection (5), if he is satisfied
that the taxable income in respect of the current income year is likely to be less than
that of the preceding income year, reduce, the amount of the instalments payable
under subsection (1) or (2).
(7) Where an individual mentioned in subsection (2) is in receipt of emoluments to which
section 64(1)(a) to (c) applies in an income year, subsection (2) shall not apply to that individual in
respect of that part of his income arising or accruing to him from such emoluments received by him in
that income year, but the amount of tax payable under that subsection shall be calculated by reference
to the proportion that his business income bears to his total assessable income.
Withholding of tax on interest payable to resident persons. 1992-28. 1993-8
64C.(1) Where any individual, company, attorney-at-law, trust company, bank or financial institution
pays to a resident person or credits to his account in any income year, interest amounting to $100 or
more, whether that interest is credited on one or more than one occasion during that year, that
individual company, attorney-at-law, trust company, bank or financial institution shall withhold from
the total amount of that interest such percentage thereof as is prescribed and shall at the prescribed
time pay the amount withheld to the Commissioner.
(2) Notwithstanding subsection (1), where:
(a) Interest is credited in respect of a fixed deposit that interest is subject to the
withholding of tax therefrom under that subsection, regardless of the amount credited
to that deposit at the date of maturity of the deposit or if the deposit is prematurely
withdrawn, the date of withdrawal;
(b) a person is credit with interest amounting to less than $100 on any occasion during a
particular year, tax shall be deducted on the aggregate of $100 or more and withheld
from subsequent amounts credited during that income year.
(3) Subsections (2) to (4) of section 64 apply in respect of tax withheld under this section as they
do in respect of tax withheld under that section.
1996-5
(4) This section shall not apply to the amounts which are not to be included in the calculation of
assessable income referred to in section 9(1).
64C.1. Repealed by 1992-28 .
Withholding taxes on income of entertainers. 1981-15
64D.(1)The promoters of entertainment provided by non-resident entertainers shall withhold the
prescribed amount from the gross earnings of those entertainers and shall immediately thereafter or at
such other time as the Commissioner prescribes, pay to the Commissioner the amount withheld as
payment in full of the tax payable in respect of those earnings.
(2) Tax under this section and section 64E is payable notwithstanding that the earnings described
therein have not been paid to non-resident entertainers or persons as the case may be.
(3) Subsections (2) to (4) of section 64 apply in respect of amounts withheld under this section
and section 64E as they apply to tax withheld under that section.G/SCM/Q3/BRB/9
Page 150
Withholding taxes on income of non-resident persons. 1981-15
64E.(1) Where services are contracted, whether directly or indirectly to be performed in Barbados by
non-resident persons other than by way of carrying on business through a fixed base, the persons in
Barbados who are under a contractual liability to pay for those services shall withhold the prescribed
amount from the gross earnings of those non-resident persons and shall immediately thereafter or at
such other time as the Commissioner prescribes, pay to the Commissioner the amount withheld as
payment in full of the tax payable in respect of those earnings.
(2) Where payment for services to which subsection (1) refers is made by a company resident in
Barbados to a non-resident affiliate company, the resident company, shall withhold the prescribed
amount from the gross earnings in accordance with subsection (1) and pay the amount withheld as
payment in full of the tax payable as specified in that subsection.
(3) For the purposes of this section:
(a) One company is affiliated with another company if one of them is the subsidiary of
the other or both are subsidiaries of the same holding company or each of them is
controlled by the same person;
(b) if two companies are affiliated with the same company at the same time they are
affiliated with each other at that time.
Cap. 82
(4) Where a person fails to withhold the prescribed amount, in accordance with this section, the
payment for services to which this section refers, may not be claimed as an expense or deduction for
the purposes of this Act or the Petroleum Winning Operations Taxation Act .
Withholding tax on income from mutual funds. 1998-42
64F. Every resident mutual fund shall withhold or deduct from any amount distributed by it, in
respect of a unit, share or other equity interest held in it, to a resident individual, an amount equal to
12.5 per cent thereof and shall within such time as is prescribed pay the amount so withhold or
deducted to the Commissioner as payment in full of the tax in respect of the income of the resident
individual arising from that unit, share or other equity interest.
Company dividends. 1975-8. 1977-16
65.(1) Subject to section 65A, where a company registered in Barbados pays a dividend, other than a
preference dividend, to a shareholder:
(a) No amount may be withheld or deducted therefrom on account of the tax imposed on
the company by section 3(2), and an amount withheld or deducted in contravention of
this paragraph shall not be deemed to be an amount of tax paid by that shareholder in
respect of any income year of the shareholder;
(b) the company shall deliver to the shareholder a certificate in the prescribed form
showing the gross amount of the dividend.
(2) Every resident company registered in Barbados upon payment of a preference dividend to a
shareholder shall:G/SCM/Q3/BRB/9
Page 151
(a) Deduct or withhold therefrom an amount equal to 40 per cent thereof and shall within
such time as is prescribed pay the amount so deducted or withheld to the
Commissioner;
(b) deliver to the shareholder a certificate in the prescribed form showing the net amount
of the dividend, the amount deducted or withheld under paragraph (a), not taking into
account any credit allowed in Barbados for foreign income tax paid by the company,
and the gross amount that is obtained by adding to the net amount of the dividend the
amount deducted or withheld under paragraph (a).
1975-8
(3) The difference between the gross amount obtained under subsection (2) in respect of a
dividend paid to a shareholder mentioned in that subsection and the net amount of the dividend paid to
such shareholder shall be deemed to be an amount of tax paid by that shareholder in respect of the
income year of the shareholder in which the dividend was paid.
1975-8. 1985-6. 1998-42
(4) Every resident company shall withhold or deduct an amount equal to 15 per cent thereof from
any amount paid by it as dividends, other than dividends, referred to in subparagraph (iv) of
section 64(1)(e) dividends or other distribution paid by a mutual fund in respect of shares, unit or
other equity interest held in that mutual fund and preference dividends, to a non-resident person and
shall within such time as is prescribed pay the amount so withheld or deducted to the Commissioner
as payment in full of the tax, in respect of the income represented by the dividend, of that non-resident
person.
1992-28. 1993-8
(4A) Every resident company shall withhold or deduct an amount equal to 12.5 per cent thereof
from any amount paid by it as dividends, other than preference dividends, to a resident individual and
shall within such time as is prescribed, pay the amount so withheld or deducted to the Commissioner.
1992-28
(4B) Subsection (4A) shall not apply to dividends to the extent that they can have been paid only
out of profits which the company paying the dividends earned or out of other income which the
company received before the first day of July 1992.
1996-30
(4C) Subsection (4A) shall not apply to dividends where the shares in respect of which the
payment is made are issued to the taxpayer in lieu of a dividend payment and are retained by the
shareholder for a period of not less than five years from the date of ownership.
1998-43. 1999-22
(4D) Subsection (4A) shall not apply to dividends paid by the Hotel Equity Investment Fund Inc.
1977-16
(5) Where in respect of the income year 1976 and every subsequent income year an office,
branch or agency of a non-resident company engaged in trade or business in Barbados remits or is
deemed to remit any part of the profits of such non-resident company accruing in or derived fromG/SCM/Q3/BRB/9
Page 152
Barbados, such office, branch or agency shall deduct or withhold therefrom an amount equal to 10 per
cent thereof and shall within such time as is prescribed pay the amount so deducted or withheld to the
Commissioner.
1977-16
(6) For the purposes of subsection (5) an office, branch or agency of a non-resident company
shall be deemed to have remitted the profits thereof except to the extent that the office, branch or
agency has reinvested to the satisfaction of the Commissioner such profits or any part thereof in
Barbados, other than in the replacement of fixed assets.
1977-16
(7) For the purposes of subsections (5) and (6) "profits" means profits after the payment of any
income tax or corporation tax.
Tax credit. 1987-26
65A.(1)In respect of the income year 1987 and every subsequent income year where a resident
company pays a dividend other than a preference dividend to a resident shareholder the recipient of
the dividend is entitled to a tax credit at the rate of 15 per cent of the amount of the dividend.
1984-9. 1987-26
(2) In computing the assessable income of a shareholder for the purposes of this section, the
amount of cash dividends and the value of the tax credit are to be included.
1984-9. 1987-26
(3) A shareholder who is entitled to a tax credit under this section, may claim to have the tax
credit set off against the income tax payable on his income under this Act, in respect of the income
year in which dividends are paid, and where the tax credit exceeds the income tax payable, to have the
excess paid to him.
1987-26
(4) This section applies to a shareholder who is:
(a) An individual;
(b) a separate trust established for the purpose of administering the funds of a registered
retirement plan and exclusively engaged in administering such funds; and
(c) a person deemed to be a separate person carrying on as a life insurance company, a
separate business classified as a registered retirement plan under section 19.
(5) This section does not apply to dividends referred to in section 65 (4A).
Exemptions in respect of qualifying insurance companies. 1998-31
65B. In respect of income year 1998 and subsequent income years, the following provisions of the
Act shall not apply in respect of payments made by a qualifying insurance company:
(a) Section 64(1), subparagraphs (i) to (vii);G/SCM/Q3/BRB/9
Page 153
(b) section 64(1A);
(c) section 64(1B);
(d) section 64E(1);
(e) section 65(4).
Tax credit: insurance companies. 1998-43. 1999-22
65C.(1) Where a life insurance company has in any income year invested an amount of money in the
Hotel Equity Investment Fund Inc., then that company shall be entitled to a tax credit at the rate of
48 per cent of the amount invested in the Fund but the tax credit shall not exceed $480,000 per
annum.
(2) Where a person withdraws any amount of the investment made under subsection (1) within
five years of the making of the investment, the amount so withdrawn shall be brought back into
charge to tax in the year in which the withdrawal was made.
(3) The amount of any unused credit:
(a) Subject to the provision of Division K, shall be used to reduce the tax payable by any
subsidiary within the corporate group; or
(b) shall be carried forward for a period of nine years;
but no cash refund shall be allowed.
(4) This section shall not apply to premium tax.
Reverse tax credit. 1998-43. 1999-22
65D.(1)With effect from income year 1998, where any employed individual:
(a) Who is resident in Barbados; and
(b) who earns less than $13,000 annually but not more than $1,084 monthly;
applies to the Commissioner in such form as the Commissioner approves, within two years of
the income year in which the earnings were paid, that person shall be entitled to a credit of
$500.
(2) Subsection (1) shall not apply:
(a) To self-employed persons;
(b) to directors of companies that are controlled by five or less persons;
(c) to beneficiaries of a trust or an estate within the meaning of section 40; or
(d) in respect of earnings payable to the estate of a deceased person.G/SCM/Q3/BRB/9
Page 154
Payment of tax. 1990-2
66.(1) Every company:
(a) Whose fiscal period ends at any time during the period 1 January to 30 September in
any year, (both dates inclusive), shall, in respect of income year 1990 and every
subsequent income year, pay any part of the tax estimated in its return filed in
accordance with section 52 in respect of that income year and is then unpaid not later
than 15 March in the following income year; and
(b) whose fiscal period ends at any time during the period 1 October to 31 December in
any year (both dates inclusive) shall, in respect of income year 1990 and every
subsequent income year, pay any part of the tax estimated in its return filed in
accordance with section 52 in respect of that income year and is then unpaid not later
than 15 June in the following income year.
1977-16. 1977-62
(1A) Notwithstanding the provisions of subsection (1) the tax payable on the premium income of a
company to which section 19 refers shall be paid in respect of the income year 1976, not later than
30 June 1977 and not later than 30 June in every subsequent year for each income year after the
income year 1976.
(2) Subject to subsection (3), every individual who has carried on a business or has been, on his
own account, in receipt of rents shall pay to the Commissioner:
(a) In respect of the income year 1974, 25 per cent of the tax that is estimated in his
return filed in accordance with section 52 in respect of that income year not later than
each of the following dates:
(i) The relevant date;
(ii) 31 July 1975;
(iii) 30 November 1975; and
punctually or for which a return of income was filed without any estimate of the tax payable
and that was unpaid at the time the failure occurred.
1977-16. 1977-62. 1981-15. 1992-28
(2) A person who fails to deduct, withhold or pay an amount that he is required by section 19(12),
64, 64B, 64C, 64D, 64E, 65(2), (4), (4A) or (5) to deduct, withhold or pay within the time prescribed,
shall pay to the Commissioner a penalty equal to 10 per cent of the amount that was not deducted,
withheld or paid, or $10, whichever is the greater.
1977-62. 1981-15. 1992-28
(3) A person who fails to pay an amount that he is required by section 19(12), 64, 64B, 64C, 64D,
64E, 65(2), (4), (4A) or (5) or 66(1A) to pay at or within the time prescribed shall, in addition to the
penalty imposed by subsection (2), pay to the Commissioner an amount as interest at the rate of
0.5 per cent per month calculated for each month during which any part of the amount was not paid
on the largest amount that had not been paid at any time in that month.G/SCM/Q3/BRB/9
Page 155
(4) Where any penalty or interest has been paid or is payable by a person under subsection (4) of
section 12 or under subsection (2) or (3) of this section, the Minister may, where the circumstances of
the case appear to him to warrant such indulgence, remit the penalty or interest, in whole or in part.
1984-9
(5) A person who fails to pay an amount of tax that is estimated by him or that is assessed on him
for an income year within the time required by section 66 or who fails to pay an amount imposed by
section 46C within the time specified in that section shall, in addition to the tax, pay to the
Commissioner a penalty equal to 5 per cent of the amount of tax that was due and unpaid at the expiry
of the time limited for payment, or $10, whichever is the greater.
1984-9
(6) (a) A person to whom subsection (1) applies or who fails to pay an amount of tax that is
estimated by him or that is assessed on him for an income year within the time
required by section 66 or who fails to pay an amount imposed by section 46C within
the time specified in that section shall, in addition to the tax and in addition to the
penalty imposed by subsection (1) or subsection (5), pay to the Commissioner an
amount of interest at the rate of 1 per cent per month calculated for each month
during which any amount of tax and penalty remained unpaid on the largest amount
of tax and penalty that was due and unpaid at any time in that month;
(b) for the purposes of paragraph (a), in the case of a person to whom subsection (1)
applies, the amount of the tax assessed on that person shall be deemed to have been
unpaid as from the date on which the return of income was required to be delivered
under section 52.
(7) Where any penalty or interest has been paid or is payable by a person under subsection (1),
(5) or (6), and:
(a) The failure giving rise to the penalty or interest arose because that person was:
(i) Out of Barbados; or
(ii) incapacitated and undergoing medical treatment at the time the failure
occurred;
and the failure was remedied as soon as reasonably possible after that person returned
to Barbados or ceased to be incapacitated or undergoing medical treatment; or
(b) where the circumstances of the case appear to warrant such indulgence;
the Minister may remit the penalty or interest, in whole or in part.
(8) A person who knowingly evades or attempts to evade payment of tax under this Act shall, in
addition to the tax and in addition to the penalty imposed by subsection (5), and the interest imposed
by subsection (1) or subsection (6), pay to the Commissioner an amount as a penalty equal to the
amount of tax evaded or sought to be evaded.
(9) An amount remitted under subsection (4) or (7) that has been paid to the Commissioner shall
be repaid by the Accountant-General on the certificate of the Minister.G/SCM/Q3/BRB/9
Page 156
1984-9
(10) For the purposes of subsection (5) to (9), "tax" includes "surcharge".
Refund of over-payments. 1984-9
68.(1) Where the amount paid by a person as tax, interest and penalties for an income year is in
excess of the amount payable in accordance with this Act by that person for that income year and
where that person applies to the Commissioner, in writing, for a refund of the excess within
three years after that date of his notice of assessment for that income year, the Commissioner shall
apply the amount of that excess against any outstanding liability of that person under this Act and
cause the balance, if any, to be repaid to that person.
(2) Repealed by 1986-25 .
(3) Repealed by 1986-25 .
(4) Where the Commissioner is satisfied that any portion of the amount paid to an individual as a
return of contributions under a registered retirement plan will be reinvested in another registered
retirement plan within the time specified in paragraph (g) of section 8, the Commissioner shall repay
the tax relating to the amount reinvested directly to the operator of that registered retirement plan on
behalf of that individual.
Payment of cash rebate. 1981-15
68A.(1)Where the cash rebate to which a person is entitled by virtue of section 12A for the income
year is in excess of that person's tax liability under this Act for that income year, the Commissioner
shall, on the application in writing of that person within three years of filing a return for that income
year, apply the amount of excess against any tax liability under this Act, and repay the balance, if any,
to that person.
(2) Repealed by 1986-25 .
Repayments. 1984-9. 1986-25. 1988-19
69. Repayments under section 68 and section 68A and interest payable under section 70A are a
charge on the Consolidated Fund and shall be made by the Commissioner out of funds provided by
the Accountant-General for the purpose.
Tax refund certificates. 1987-26
69A.(1)A person entitled to a repayment under section 68 or 68A may at his option be issued a tax
refund certificate for the value of the amount to be repaid.
(2) Where the certificate by virtue of its denomination is not for the full value of the amount to be
repaid, the excess shall be repaid to that person.
Payment on altered assessment
70. Where an assessment of tax on a person for an income year is altered and a reassessment,
settled assessment or final assessment is made, the provisions of this Act with respect to payment,
repayment, interest, penalties and collection shall apply as if the reassessment, settled assessment or
final assessment and any notice of reassessment, notice of settled assessment or notice of final
assessment was a notice of assessment.G/SCM/Q3/BRB/9
Page 157
Interest payable by Commissioner. 1986-25
70A. Where a person delivers a return of income in respect of income year 1986 and subsequent
income years under section 52 within the time required by that section and a refund of tax overpaid is
due to that person and the refund is not paid to the person within six months after the time required by
section 52 the Commissioner shall, on the amount overpaid, pay to the person interest at the rate of
1 per cent per month from the time so required.
DIVISION AA
Collection
Recovery of taxes
71. All taxes, interest, penalties, costs and other amounts payable under this Act are debts due to
the Crown and recoverable as such in civil proceedings in the High Court or in the magistrate's court
of District "A", at the option of the Crown, notwithstanding that the amount involved exceeds the
normal monetary limit on the jurisdiction of the magistrate's court.
Unpaid tax certificates
72.(1) An amount payable by a person under this Act that has remained unpaid for a period of
30 days may be certified in relation to that person by the Commissioner in a certificate called an
unpaid tax certificate.
(2) An unpaid tax certificate may be filed by the Commissioner in the High Court or in the
magistrate's court of District "A" and shall be registered in the court in which it is filed and after the
expiry of seven days after it is filed and registered has the same force and effect as a judgement of the
court in which it is registered in favour of the Crown against the person named in the certificate for
the amount specified in the certificate, plus:
(a) Interest thereon as provided in this Act until the date of payment; and
(b) the reasonable costs and charges attendant upon the registration of the certificate;
and all proceedings may be taken on the certificate and it may be enforced as if it was a
judgement of the court in which it is registered.
(3) Where an unpaid tax certificate is filed by the Commissioner in the High Court or in the
magistrate's court of District "A", the Commissioner shall forthwith deliver a copy of the unpaid tax
certificate to the person to whom the unpaid tax certificate relates; and if the copy of the unpaid tax
certificate is not so delivered within seven days of the filing, then subsection (2) ceases to have effect
with respect to that unpaid tax certificate.
Execution and enforcement of judgements in certain circumstances. 1983-33
72A. Where a judgement:
(a) Exists by virtue of section 72; or
(b) is obtained in any court;
against a person in respect of income tax owed by that person, the Commissioner may
proceed to execute and enforce that judgement and exercise all the remedies attached theretoG/SCM/Q3/BRB/9
Page 158
for the satisfaction of the judgement notwithstanding any enactment or rule of law to the
contrary relating to:
(c) the powers and duties of a receiver;
Cap. 308. (d) the effect of a winding-up order under the Companies Act ; or
Cap. 303. (e) the effect of a receiving order under the Bankruptcy Act .
Garnishment 1974-11
73.(1) Where the Commissioner believes that any person is indebted to or liable to make a payment
to another person and that other person is indebted to the Crown under this Act, the Commissioner
may deliver to the first-mentioned person a demand for payment stating the name of the person
indebted to the Crown and the amount of the debt to the Crown including the rate of interest thereon,
and where that first-mentioned person is the employer of the person indebted to the Crown the amount
demanded for each pay period being an amount not exceeding one-third of the sum payable to the
employee during that period, expressed either as a dollar amount or a percentage of remuneration.
(2) Every person who receives a demand for payment under subsection (1) relating to one of his
employees shall pay to the Commissioner at the same time as he would pay that employee the amount
demanded by the Commissioner or the amount of the employee's indebtedness to the Crown,
whichever is the lesser, and shall continue to do so on each occasion that the employee is entitled to
be paid until the employee's indebtedness to the Crown is satisfied.
(3) Every person who receives a demand for payment under subsection (1) relating to some
person other than one of his employees shall, if he is indebted to or liable to make a payment to that
other person, pay to the Commissioner the amount of his indebtedness or the amount which he is
liable to pay to that person or the amount of that person's indebtedness to the Crown, whichever is the
lesser.
(4) Every person who has discharged any liability to a person indebted to the Crown under this
Act after receiving a demand for payment under subsection (1) without complying with subsection (2)
or (3) is liable to pay to the Crown an amount equal to the liability discharged or which he was
required under subsection (2) or (3) to pay the Commissioner, whichever is the lesser.
(5) The payment of an amount to the Commissioner under subsection (2) or (3) operates as a
discharge of any liability of the person making the payment to the person to whom the payment
would, but for this section, have been paid, to the extent of the amount paid to the Commissioner.
Cap. 351
(6) This section is effective notwithstanding the Protection of Wages Act .
Persons leaving Barbados
74.(1) Where the Commissioner suspects that a person is about to leave Barbados, he may deliver to
the person a notice for immediate payment stating the amount that the Commissioner believes that
person is liable to pay as taxes, interest or penalties under this Act or would be liable to pay if the time
for payment had arrived, and that person shall forthwith pay the amount specified in the notice for
immediate payment.
(2) Where a person who has received a notice for immediate payment fails to pay forthwith the
amount specified therein, that amount shall be deemed to have remained unpaid for a period ofG/SCM/Q3/BRB/9
Page 159
30 days for the purposes of section 72 and that section will be applicable in respect of that person as if
the reference to seven days in subsections (2) and (3) of that section were references to 24 hours.
(3) An amount paid or recovered in consequence of this section shall be deemed to have been
paid or recovered to be applied against the liability for taxes, interest and penalties of the person by
whom it was paid or from whom it was recovered in respect of the income year in which the amount
was paid or recovered, or prior income years.
DIVISION AB
Investigations
Accounts and records
75.(1) Every business carrying on business and every person who is or may be required by this Act
to collect or pay a tax or other amount shall keep records and books of account, including an annual
inventory, in Barbados, in such form and containing such information as will enable the taxes payable
under this Act or the taxes or other amounts that should have been deducted, withheld or collected to
be determined.
(2) Without restricting the generality of subsection (1), every person carrying on a business in
which a service is provided shall make a separate record of every transaction made in the course of
that business.
(3) Where a person has failed to keep adequate records and books of account for the purposes of
this Act, the Commissioner may require him to keep such records and books of account as he may
specify and that person shall thereafter keep records and books of account as so required.
(4) Every person required by this section to keep records and books of account shall retain every
such record or book of account and every account, voucher or other record necessary to verify such
record or book of account, until written permission for their disposal is obtained from the
Commissioner.
Audit and ancillary powers
76.(1) A person authorized by the Commissioner for any purpose related to the administration or
enforcement of this Act may, at any reasonable time, on production of his letter of authorization enter
into any premises or place where any business is carried on or any property is kept or anything is done
in connection with any business or any books or records are or should be kept pursuant to this Act,
and:
(a) Audit or examine the books and records and any account, voucher, letter, telegram or
other document which relates or may relate to the information that is or should be in
the books or records or to the amount of tax payable under this Act;
(b) examine property described by an inventory or any property, process or matter an
examination of which may, in his opinion, assist him in determining the accuracy of
an inventory or in ascertaining the information that is or should be in the books or
records or the amount of tax payable under this Act;
(c) require the owner or manager of the property or business and any other person on the
premises or place to give him all reasonable assistance with his audit or examination
either orally or, if he so requires, in writing, on oath or otherwise and, for that
purpose, require the owner or manager to attend at the premises or place with him;
andG/SCM/Q3/BRB/9
Page 160
(d) if, during the course of an audit or examination, it appears to him that there has been a
violation of this Act or a regulation, seize, take away and retain any of the records,
books, accounts, vouchers, letters, telegrams and other documents that may be
relevant.
(2) The Commissioner may, for any purpose related to the administration or enforcement of this
Act, by registered letter or by a demand served personally, required from any person:
(a) Any information or additional information in the form of a return of income or a
return of information or otherwise; and
(b) production, or production on oath, of any books, letters, accounts, invoices,
statements or other documents;
within such reasonable time as may be stipulated therein.
(3) The Commissioner may, for any purpose related to the administration or enforcement of this
Act, by not less than seven days notice in writing require any person to attend before him and give
evidence on oath and to produce on oath all books, letters, account, invoices, statements or other
documents in his possession or control.
(4) The Commissioner may, for any purposes related to the administration or enforcement of this
Act, authorize in writing any officer or other person employed to administer and enforce this Act,
together with such members of the police force as that person calls upon to assist him, to enter and
search, if necessary by force, any building, receptacle or place for documents, books, records or things
which may afford evidence of a violation of this Act or a regulation, and to seize, take away and retain
any such documents, books, records or other things.
(5) Where any book, record or other document has been seized, examined or produced under this
section, the person by whom it was seized or examined or to whom it was produced may make, or
cause to be made, one or more copies thereof and a document purporting to be certified by the
Commissioner to be a copy made pursuant to this subsection is admissible in evidence and has the
same probative force as the original document would have had if it had been proven in the ordinary
way.
(6) No person shall hinder, molest or interfere with any person doing anything that he is
authorized by or pursuant to this section to do, or prevent or attempt to prevent any person doing any
such thing and, notwithstanding any other law to the contrary, every person shall do anything that he
is required by this section to do.
(7) Without restricting the generality of this section, this section applies to banks and attorneys-
at-law, their employees and offices as it applies to any other business, persons and premises.
Attorney-client privilege
77.(1) Where an attorney-at-law is prosecuted for failure to comply with a requirement under
section 76 to give information or to produce a document, he shall be acquitted if he establishes to the
satisfaction of the Court:
(a) That he, on reasonable grounds, believed that a named client of his had an attorney-
client privilege in respect of the information or document; andG/SCM/Q3/BRB/9
Page 161
(b) that he informed the Commissioner within seven days after receiving notice of the
requirement that a named client of his had, in the opinion of the attorney-at-law, an
attorney-client privilege in respect of the information or document.
(2) Where a person is about to examine or seize a document in the possession of an attorney-at-
law and the attorney-at-law claims that a named client of his has an attorney-client privilege in respect
of that document, the person shall, without examining or making a copy of the document:
(a) Seize the document and place it, together with any other document with respect to
which the same attorney-at-law makes a similar claim of attorney-client privilege
with respect to the same named clients, in a package; and
(b) seal and identify the package and place it in the custody of the Registrar of the
Supreme Court.
(3) Where a document has been placed in the custody of the Registrar under subsection (2), the
attorney-at-law or the named client in respect of whom the claim of attorney-client privilege was
made in respect of that document may apply to a Judge in Chambers, upon at least three days notice to
the Commissioner, for an order determining the question of whether that named client has an
attorney-client privilege in respect of that document, and on the hearing of that application the judge
may inspect the document.
(4) Where no application under subsection (3) is made within 30 days after a document was
placed in the custody of the Registrar under subsection (2), the attorney-client privilege shall be
deemed to have been waived by the named client in respect of that document and the document shall
be delivered up by the Registrar of the Supreme Court to the Commissioner.
(5) Where an order is made by a judge under subsection (3) to the effect that an attorney-client
privilege attaches to that document, the Registrar of the Supreme Court shall deliver up that document
to the attorney-at-law from whom it was seized; but if an order is made to the effect that no attorney-
client privilege attaches to that document, the Registrar of the Supreme Court shall deliver up that
document to the Commissioner.
(6) While a package is in the custody of the Registrar of the Supreme Court under this section:
(a) The attorney-at-law in respect of whom the claim of attorney-client privilege is made
may require the Registrar to open the package and permit the attorney-at-law to make
a copy of a document contained therein in the presence of the Registrar, and the
Registrar shall comply with that requirement; and
(b) the Registrar may open the package and separate the documents contained therein
into two or more separate groups of documents;
and thereafter the Registrar shall reseal the package or packages.
(7) No person shall examine or seize a document in the possession of the attorney-at-law without
giving the attorney-at-law an opportunity to make a claim of attorney-client privilege in respect of that
document and in respect of a named client.
(8) For the purposes of this Act, an attorney-client privilege may be waived at any time by the
client.
(9) For the purposes of this Act, an accounting record of an attorney-at-law, including any
supporting voucher or cheque, shall be deemed not to be within the scope of attorney-client privilege.G/SCM/Q3/BRB/9
Page 162
DIVISION AC
Representatives for Tax Purposes
Representatives for tax purposes
78.(1) For the purposes of this Act, every person who directs or controls the property or income
from property of the following persons, or who otherwise represents those persons, namely:
(a) A company;
(b) an incapacitated person;
(c) a deceased person;
(d) a non-resident person;
(e) a person who is bankrupt or whose property is in liquidation or receivership;
(f) a person who is under the age of 16 years;
(g) a trust or estate that is deemed to be a separate individual; or
(h) an association of underwriters;
as manager, principal officer, factor, agent, parent, guardian, committee, legal representative,
trustee, trustee in bankruptcy, liquidator, receiver or in other representative capacity, shall
perform all the duties and may exercise all the rights imposed on or granted to the person he
presents by this Act, and this Act applies to that representative and to things done or omitted
to be done by or in relation to that representative as if he were the person he represents.
(2) Notwithstanding subsection (1), the separate property of the person acting in a representative
capacity shall not be subject to the tax imposed by this Act on the person he represents and the tax
imposed by this Act on the person he represents shall be paid out of the separate property of the
person he represents.
(3) A person acting in a representative capacity under subsection (1) may retain out of money
coming into his hands on behalf of the person he represents so much thereof from time to time as is
sufficient to discharge the obligation sunder this Act of the person he represents and he shall not be
liable to the person he represents with respect to any matter arising as a result of his compliance with
this section.
DIVISION AD
Offences
Offences
79.(1) Every person who:
(a) Fails to deduct, withhold or pay an amount under section 64 within the time
prescribed;
(b) fails to pay any amount of tax due by him when it is due and payable;G/SCM/Q3/BRB/9
Page 163
(c) fails to file a return of income under section 52 as and when required by that section;
(d) fails to keep or retain records or books of account as required by section 75;
(e) fails, without proper justification, to do anything that he is required to do under
section 76;
(f) fails, without proper justification, to obey a summons or requirement under
paragraph (d) of subsection (6) of section 59;
(g) hinders, molests, obstructs, impedes or interferes, with any person doing anything that
he is lawfully authorized to do in connection with the administration of this Act;
(h) negligently, in relation to this Act or any possible liability, hereunder:
(i) Makes any false or deceptive return;
(ii) gives any false or deceptive information;
(iii) misleads or attempts to mislead the Commissioner or a member of his staff,
or a member of the Income Tax Appeal Board;
(iv) destroys, alters, mutilates, secretes or otherwise disposes of the records or
books of account by himself or any other person except as permitted by
section 75;
(v) makes or assents to or acquiesces in the making of false or deceptive entries,
or omits, or assents to or acquiesces in the omission of, a material particular
in the records or books of account of himself or any other person;
(i) commits any other breach of this Act or a regulation for which no penalty is expressly
provided;
(j) aids, abets, incites or conspires with any other person to commit an offence described
in paragraphs (a) to (i);
is guilty of an offence and, in addition to any other penalty otherwise provided and
recoverable by civil proceedings, is liable on summary conviction to a fine of not less than
$10 and not greater than $10,000.
(2) Every person who:
(a) Wilfully or knowingly, in relation to this Act or any possible liability hereunder:
(i) Makes any false or deceptive return;
(ii) gives any false or deceptive information;
(iii) misleads or attempts to mislead the Commissioner or a member of his staff,
or a member of the Income Tax Appeal Board;
(iv) destroys, alters, mutilates, secretes or otherwise disposes of the records or
books of account of himself or any other person except as permitted by
section 75 in order to facilitate an evasion of tax; orG/SCM/Q3/BRB/9
Page 164
(v) makes or assents to or acquiesces in the making of false or deceptive entries,
or omits, or assents to or acquiesces in the omission of, a material particular
in the records or books of account of himself of any other person; or
(b) aids, abets, incites or conspires with any other person to commit an offence described
in paragraph (a);
is guilty of an offence, and in addition to any other penalty otherwise provided and
recoverable by civil proceedings, is liable on summary conviction to imprisonment for a term
not exceeding six months, or to a fine of not less than $500 and not greater than $10,000 or to
both such imprisonment and such fine.
(3) Every person who has communicated or allowed to be communicated to a person not legally
entitled thereto any information obtained under this Act or a regulation or who has allowed any
person not legally entitled to do so to inspect or have access to any written statement furnished under
this Act or a regulation is guilty of an offence and is liable on summary conviction to a fine of $100.
Prosecutions
80.(1) An information in respect of an offence under this Act or the regulations may be heard, tried
or determined before one of the magistrates of District "A" and may be laid on or before a day five
years after the matter of the information occurred or within one year from the day on which evidence,
sufficient in the opinion of the Commissioner to justify a prosecution for the offence, came to his
knowledge, whichever is the later, and the Commissioner's certificate as to the day on which such
evidence came to his knowledge is conclusive evidence thereof.
(2) An information under this Act may be laid by the Commissioner, any officer or employee
assisting the Commissioner in the administration and enforcement of this Act, any member of the
police force or any person specifically authorized by the Commissioner, and where an information
purports to have been laid under this Act:
(a) It shall be deemed to have been laid by a person specifically authorized by the
Commissioner and shall not be called in question for lack of authority of the
informant except by a person acting on behalf of the Commissioner;
(b) no proceedings thereon shall be dismissed by reason only of the failure of the
informant to appear in person or by attorney-at-law if the informant is represented by
an officer or employee assisting the Commissioner in the administration and
enforcement of this Act; and
assisting the Commissioner in the administration and enforcement of this Act; and
(c) no proceedings thereon, where the informant is the Commissioner, shall lapse or be
dismissed by reason of any change as to the holder of the office of Commissioner.
Evidence
81.(1) Any matter relating to the administration of this Act by the Commissioner including, without
restricting the generality of the foregoing, any matter relating to the records of the Commissioner, the
delivery or non-delivery of documents, the giving or failing to give evidence, the receipt or non-
receipt of documents, the payment or non-payment of tax or other amounts or the date or time of
doing any act or the date or time when any act remained undone may be proved by an affidavit of the
Commissioner or a member of his staff setting out that he has examined the records maintained by theG/SCM/Q3/BRB/9
Page 165
Commissioner; and what those records indicate with respect to that matter shall be received as prima
facie evidence of the facts set out therein and as prima facie evidence that the records maintained by
the Commissioner show correctly when and whether any act has or has not been done.
(2) An affidavit of the Commissioner or a member of the staff of the Commissioner setting out
that a document annexed thereto is a document or a true copy of a document relating to a matter
arising in the administration of this Act or the regulations and setting out the manner in which that
document or true copy of a document came into his possession or control shall be received as prima
facie evidence of the nature and contents of the document and of the fact that it was made or signed
by or on behalf of the person by whom or on whose behalf it purports to have been made or signed
and in the case of a document required by this Act to be delivered that it was delivered by or on behalf
of that person, and shall be admissible in evidence and have the same probative force as the original
document would have if it had been proven in the ordinary way.
(3) Where evidence is offered under this section by an affidavit from which it appears that the
person making the affidavit is the Commissioner or a member of the staff of the Commissioner, it is
not necessary to the admissibility of the affidavit as evidence that the signature or the status of such
person be proven or that the official character of the person before whom the affidavit is sworn be
established.
(4) Judicial notice shall be taken of all regulations made under this Act without such regulations
being specially pleaded or proven.
(5) This section applies to all proceedings, whether civil or criminal, arising from the
administration or enforcement of this Act, the regulations or any other enactment or regulations
relating to income tax.
PART IV
Double Taxation Relief
Commonwealth double taxation relief
82.(1) Notwithstanding any other provision of this Act, where a person has paid or is liable to pay
tax under this Act for an income year on any part of his income and has also paid or is liable to pay
Commonwealth income tax on the same part of his income, he is entitled to relief from tax under this
Act on that part of his income at a rate determined as follows, that is to say:
(a) Where that person is resident in Barbados in that income year:
(i) If the Commonwealth income tax rate does not exceed one-half of the
Barbados income tax rate of that person, the relief is at the Commonwealth
income tax rate; and
(ii) in any other case, the relief is at one-half of the Barbados income tax rate;
and
(b) where that person is not resident in Barbados in that income year:
(i) If the Commonwealth income tax rate does not exceed the Barbados income
tax rate of that person, the relief is at one-half of the Commonwealth income
tax rate; and
(ii) in any other case, the relief is at a rate equal to the Barbados income tax rate
minus one-half of the Commonwealth income tax rate of that person.G/SCM/Q3/BRB/9
Page 166
(2) For the purposes of this section:
(a) The expression "Commonwealth income tax" means any income tax imposed by a
country or territory that:
(i) Is a member of the Commonwealth; and
(ii) grants relief in respect of Barbados income tax in a manner similar to that
provided by this section;
(b) certificate issued by or on behalf of the person administering the income tax
legislation of the particular Commonwealth country may be received as evidence of
the Commonwealth income tax rate in any particular case;
(c) a rate of tax shall be determined by dividing the income tax paid or payable before
the deduction of relief granted under this or a similar section by the amount of the
assessable income, or the equivalent, in respect of which the tax has been charged;
and
(d) where a person is resident in an income year in both Barbados and a country or
territory under whose laws he is liable to pay Commonwealth income tax for that
income year he shall be deemed not to be resident in Barbados in that income year if
he spends more time in that country or territory than he spends in Barbados in that
income year.
Double taxation relief by international agreement
83.(1) Notwithstanding any other provisions of this Act, where an agreement has been made
between Barbados and another country or territory with respect to the avoidance of double taxation,
the prevention of fiscal evasion or other matters relating to the taxation of income, whether that
agreement is made by the Government of Barbados or otherwise and by whatever name the agreement
is known or designated, the agreement has the force of law in and for Barbados and is effective in
accordance with its terms throughout and in relation to the duration of the agreement.
(2) The Minister may, subject to negative resolution, make regulations for the purpose of carrying
out any agreement referred to in subsection (1) or for giving effect to any of the provisions thereof,
and such regulations may be made and continue in force notwithstanding that no agreement is in
effect for the purposes of subsection (1).
(3) In the event of any inconsistency between an agreement and any regulations made under
subsection (2), the terms of the agreement prevail to the extent of the inconsistency.
(4) In the event of any inconsistency between an agreement and any regulation made under
subsection (2), on the one hand, and the provisions of this Act on the other hand, the terms of the
agreement and the regulations made under subsection (2) prevail to the extent of the inconsistency.
(5) Where an agreement is in effect under this section between Barbados and another country or
territory, the income tax imposed by that other country or territory shall be deemed not be
Commonwealth income tax for the purposes of section 82 unless that agreement otherwise provides.
(6) Notwithstanding any other provision of this Act, the Commissioner or a person authorized by
the Commissioner may disclose to an authorized officer of the Government of a country or territoryG/SCM/Q3/BRB/9
Page 167
with which an agreement has been made of the type described in subsection (1) any information that
the agreement requires or contemplates will be so disclosed.
PART V
Regulations
Regulations
84.(1) The Minister may, subject to negative resolution, make regulations:
(a) Prescribing rules for the registration of, and other matters in relation to, benevolent
organizations under this Act;
(b) prescribing rules for the registration of, and other matters in relation to, retirement
plans under this Acts;
(c) prescribing rules for the registration of, and other matters in relation, to unit trusts;
(d) prescribing the industries that are basic industries;
(e) setting the percentage of the capital expenditure on particular classes machinery and
plant that are to be deemed to be just and reasonable as representing the annual wear
and tear of those classes of machinery and plant, in default of it being established that
some other percentage is the just and reasonable percentage;
(f) specifying the extent to which interest on bonds, debentures or stock of the Governor
of Barbados, beneficially owned by a non-resident person, shall not be included in
calculating the assessable income of that person for an income year;
(g) prescribing the persons or classes of persons required to make returns of information
and prescribing the type of information to be contained therein and the dates when
those returns must be filed;
1981-15 (h) prescribing rules for the Income Tax Appeal Board;
(i) providing a system for the deducting, withholding and payment of amounts under
section 64 and providing for all other matters relating thereto;
(j) providing for the cessation of the application of effectiveness or the revocation of any
order, rule, regulation or other statutory instrument or document made under powers
conferred on any person under the Income Tax Act, 19211;
(k) prescribing anything, other than tables and forms, that by this Act is to be prescribed
or is to be determined or regulated by regulation;
(l) providing, where there is no provision or not sufficient provision in this Act in respect
of any matter or thing necessary to give effect to this Act, the manner or form in
which the deficiency is to be supplied;
(m) making any provisions which may be convenient for the administration of this Act or
which in the opinion of the income tax and, in the absence of an established practice,
the fiscal period is that adopted by the person with the approval of the Commissioner;
1Act 1921-6 replaced by this Act.G/SCM/Q3/BRB/9
Page 168
but not fiscal period may exceed 53 weeks and no change in a usual and accepted
fiscal period may be made for the purposes of this Act without the concurrence of the
Commissioner;
"general insurance business" means an insurance business other than a life insurance business
or a registered retirement plan business;
"incapacitated person" means a lunatic, idiot, insane person and any other person who is
unable by reason of mental incapacity to comply with this Act;
"income year" means:
(i) In the case of a company or other person carrying on a business, a fiscal period; and
(ii) in the case of an individual, a calendar year, and when an income year is referred to
by reference to a calendar year the reference is to the income year coinciding with or
ending in that calendar year;
1978-44. "insurance company" means a company carrying on a general insurance business, a life
insurance business or a registered retirement plan business;
Cap. 77. "international business company" has the meaning assigned to it by section 3 of the
International Business Companies Act ;
"legal representative" means an executor, administrator or other representative of a deceased
person;
"life insurance business" means ordinary life insurance business, industrial life insurance
business; general and pension annuity business and retirement plan business, but does not
include registered retirement plan business;
"maintenance" means an amount paid by a person in respect of support of his spouse or
children, whether as alimony or otherwise, pursuant to a decree, order or judgement of a
competent tribunal, where the amount is paid as one of a number of periodic payments and
where the person making the payment is habitually living apart from his spouse or children,
as the case may be, at the time the payment is made;
1998-42.
1998-45. "mutual fund" means a mutual fund authorized to carry on business under the Mutual Funds
Act;
"non-resident" means no resident in Barbados;
"office" means the position of an individual entitling him to a fixed or ascertained stipend or
remuneration, and include a judicial office, the office of a Minister, the office of a member of
the Senate or House of Assembly, an other office the incumbent of which is elected by
popular vote or is elected or appointed in a representative capacity, and also includes the
position of a corporation director, and "officer" means a person holding such an office;
1975-8. "preference dividend" means a dividend payable on a preferred share or preferred stock at a
fixed gross rate per cent, issued by a resident company before 1 January 1975, or, where a
dividend is payable on such a preferred share or preferred stock partly at a fixed gross rate per
cent, and partly at a variable rate, such part of that dividend as is payable at a fixed gross rate
per cent;G/SCM/Q3/BRB/9
Page 169
"prescribed" in the case of a table, a form, or the information to be given in a form, means
prescribed by order of the Commissioner, and, in any other case, means prescribed by
regulation;
"property" means property of any kind whatsoever, whether real or personal, corporeal or
incorporeal, and, without restricting the generality of the foregoing, includes a right of any
kind whatsoever, a share, or a chose in action ;
"purchased annuity" means an annuity granted for adequate consideration in money or
money's worth in the ordinary course of a business of granting annuities on human life, but
does not include:
(i) An annuity purchased under a registered retirement plan; or
(ii) an annuity purchased by any person in recognition of the past services of any other
person; or
(iii) an annuity purchased under any direction in a will, settlement or trust or purchased to
provide an annuity payable under or out of property subject to a will, settlement or
trust;
1998-31.
Cap. 310 "qualifying insurance company" has the meaning assigned to it by section 2(1) of the
Insurance Act ;
"registered", except when applied to a unit trust, means accepted by the Commissioner and
registered by him for the purposes of this Act, for a specified time or until the registration is
withdrawn or cancelled by the Commissioner;
"registered retirement plan business" means any business undertaken for the purpose of
establishing and conducting a retirement plan that is in fact a registered retirement plan in the
income year in which the business is being carried on;
1998-30. "registered retirement savings plan" means a retirement savings plan approved and registered
by the Commissioner for the purpose of this Act that complies with the provisions of this Act
and the regulations;
"registered unit trust" means any unit trust declared by an order of the Minister to be a
registered unit trust;
"relative" means a person who is related by blood to another person, and for the purposes of
this definition a legally adopted child shall be deemed to be related by blood to its adopted
parent and to every person to whom the adopted parent is related by blood;
"retirement plan" means a pension plan or other arrangement or scheme, whether established
by legislation, contract or otherwise, whereby an annuity for life is provided to an individual
or his spouse:
(i) By an employer or former employer of that individual; or
(ii) under an annuity contract between that individual and a person carrying on an
annuities business, in consideration of payments made by that individual; or
(iii) under a trust established for the purpose of the arrangement or scheme, in
consideration of payments made by that individual;G/SCM/Q3/BRB/9
Page 170
"retirement plan benefit" includes any amount received out of or under a retirement plan other
than as a premium or consideration for administering the plan, as a pension or otherwise, and,
without restricting the generality of the foregoing, includes any payment to a beneficiary
under the plan or to an employer or former employer of the beneficiary or his spouse, but
does not include a lump sum payment on retirement;
1985-6. "royalties" means any payment of any kind received as consideration for the use of or the
right to use, any copyright of literary, artistic, or scientific work including royalties in respect
of motion pictures and works on film, tape or other means or reproduction for use in
connection with radio or television, any patent, trademark, design or model, plan, secret
formula or process, or scientific experience;
"salary" means the assessable income of a person from an office or employment and includes
all fees for services not rendered in the course of a business of that person but does not
include retirement plan benefits or allowances on retirement;
"settlement" includes any disposition, trust, covenant, agreement, arrangement or transfer of
assets;
"settlor" includes any person by whom a settlement was made or entered into, either directly
or indirectly, and, without restricting the generality of the foregoing, includes any person who
has provided or undertaken to provide funds directly or indirectly for the purpose of a
settlement or has made with any other person a reciprocal arrangement for that other person to
make or enter into the settlement;
"share" includes any interest in the capital of a company;
"shareholder" includes any member of a company, whether the capital of that company is
divided into shares or not;
"tax" means
(i) In relation to a person liable to tax under subsection (1) of section 3, the income tax
imposed by that subsection;
(ii) in relation to a company the corporation tax imposed by section 3(2);
"taxable income" means assessable income less the deduction permitted by Divisions L to Q
of Part II;
"unit trust" means any arrangement that provides facilities for the participation by persons as
beneficiaries under a trust in which an interest in the property subject to the trust or in the
income or other gains arising therefrom may be purchased in the income or other gains arising
from the acquisition, holding, management or disposal of securities or any other property
whatsoever;
"wages" means the assessable income of a person from an office or employment not rendered
in the course of a business of that person but does not include retirement plan benefits or
allowances on retirement; and
"year of assessment" means the year following an income year.
(2) For the purposes of this Act, where, in an income year, a non-resident person:G/SCM/Q3/BRB/9
Page 171
(a) Produced, grew, mined, created, manufactured, fabricated, improved, packed,
preserved or constructed, in whole or in part, anything in Barbados, whether or not he
exported that thing without selling it prior to exportation; or
(b) solicited orders or offered anything for sale in Barbados through a factor, agent or
servant, whether the contract or transaction was to be completed inside or outside
Barbados or partly in and partly outside Barbados;
he shall be deemed to have been carrying on business in Barbados in that income year and the
income of that business shall be deemed to be income derived from Barbados for that income
year.
(3) For the purposes of this Act, in determining whether a person, alone or together with others,
exercises control over another person, a relationship of control shall be deemed to exist where:
(a) That other person is a company and that first person, alone or together with those
others, holds a majority of the shares of the company or otherwise possesses by
himself, a relative, a relative of his wife or a nominee sufficient voting power to
ensure that the affairs of the company are conducted in accordance with his wishes;
and
(b) that other person is a member of a partnership and that first person has a right to more
than one-half of the assets or income of the partnership;
and in determining whether a certain number of persons exercise a relationship of control
over a company, persons in partnership and persons interested in the estate of a deceased
person or in property held in trust shall, respectively, be deemed to be a single person.
1983-21
(4) For the purposes of this Act, "industrial building or structure" means a building or structure in
use or purchased, constructed, reconstructed, altered or adapted to be used for the purposes of:
(a) An undertaking for the generation, transformation, conversion, transmission or
distribution of electrical energy; or
(b) a trade carried on in a mill, factory or other similar premises; or
(c) a trade which consists in the manufacture of goods or materials or the subjection of
goods or materials to any process; or
(d) a trade which consists in the storage of goods or materials:
(i) Which are to be used in the manufacture of other goods or materials; or
(ii) which are to be subjected in the course of trade to any process; or
(5) The Income Tax Act, 1921 is repealed with effect from and after 31 December 1973.
(6) to (12) Spent .
87. Spent .G/SCM/Q3/BRB/9
Page 172
Expiring provisions
88.(1) In calculating the assessable income of an individual for an income year, an annuity payment
or part thereof paid under an annuity policy that was purchased in Barbados before 1 January 1953
and that provides that the aggregate amounts paid thereunder as annuity payments cannot be less than
the purchase price of the policy, to the extent that, when taken together with all such payments
previously made under the policy, it does not exceed the purchase price of the policy, shall not be
included.
(2) Spent .
(3) In calculating the taxable income for an income year of an individual who has made a
payment in that income year under a requirement of a settlement made before 29 September 1966,
paragraph (a) of section 34 shall be deemed to read as follows:
"(a) The payments are made to or applicable for the benefit of another individual under a
requirement of the settlement that such payments will be made every year for a period
of not less than seven years or for the life of that other individual, whichever is the
longer period, or under a requirement of a settlement made before 29 September 1966
that such payments will be made very year for a period of not less than seven years."
(4) In calculating the taxable income of an individual for an income year, if in that income year
the individual has maintained a policy of insurance on his life or on the life or his wife or child and he
had maintained that policy of insurance before 1 January 1953, section 31 may at the option of that
individual be deemed to read as follows:
"31. In calculating the taxable income of an individual for an income year, there shall be
deducted from the assessable income of that individual in respect of a policy of insurance on
the life of that individual or on the life of his wife or child, not exceeding:
(a) In the case of any one policy an amount equal to 7 per cent of the capital sum assured
on death under that policy;
(b) in total, an amount equal to one-sixth of the assessable income of that individual for
that income year; or
1969-51. (c) in total, $960;
whichever is the least."
(5) In calculating the taxable income for an income year of a person who has made contributions
under a retirement plan which was registered before 2 January 1969, subsection (3) of section 32 shall
be deemed to read as if for the references therein to 15 per cent there was substituted in each case a
reference to 20 per cent.
_______________G/SCM/Q3/BRB/9
Page 173
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 profits Rebate 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%
1996-5. 6. Management consultancy.
1996-5. 7. Public accountancy services.
1996-5. 8. Administrative services.
1996-5. 9. Legal, trust and corporate secretarial services.
1996-5. 10. Entertainment.
1996-5. 11. Medical and dental services.
1996-5. 12. Cultural services and sports.
1998-31.
Cap. 310. 13. Services in respect of insurance business including reinsurance of risks
undertaken in the course of carrying on an insurance business and investment
or other business activities undertaken in connection with the insurance
business by a company registered under the Insurance Act .
_______________
THIRD SCHEDULE
1996-5
(Section 23E)
METHOD OF CALCULATING AND ACCOUNTING PERIOD
1. Where an accounting period of a surrendering company a corresponding accounting period of
a claimant company do not coincide:
(a) The amount which may be set off against the total profits of the claimant company for
the corresponding accounting period shall be reduced by applying the fraction:
A
BG/SCM/Q3/BRB/9
Page 174
where that fraction is less than unity; and
(b) the total profits of the claimant company for the corresponding accounting period
shall be reduced by applying the fraction:
A
C
where that fraction is less than unity.
2. For the purposes of calculation:
(a) "A" is the length of the period common to the two accounting periods;
(b) "B" is the length of the accounting period of the surrendering company;
(c) "C" is the length of the corresponding accounting period of the claimant company.
_______________
FOURTH SCHEDULE
1996-5.
(Section 12H)
1. A foreign currency allowance set off for the purposes of subsection (1) of section 12H shall
be calculated as follows:
Profits from foreign currency earnings as
percentage of total profitsRebate of income tax as a percentage of income
tax on net profits from foreign currency earnings
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, profits from foreign currency earnings shall be deemed to be
profits arrived at by the formula:
FCE x P
TE
where:
(a) "FCE" represents the foreign currency earnings transferred to the credit of that person
within the relevant income year in accordance with section 12H;
(b) "P" represents the net profits from all sources;
(c) "TE" represents the total gross earnings from all sources.
_______________G/SCM/Q3/BRB/9
Page 175
FIFTH SCHEDULE
1998-31
(Section 12H)
1. A foreign currency earnings allowance set off for the purposes of subsection (1) of
section 12H shall be calculated as follows:
Premiums from foreign insurance business as
percentage of total premium incomeRebate of income tax, expressed as a
percentage of income tax applicable
to foreign insurance business
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 this calculation the income tax applicable to foreign insurance business
shall be deemed to be:
FP x TT
TP
where:
(a) "FP" represents in respect of foreign insurance business:
(i) premiums net of reinsurances; and
(ii) investment income;
(b) "TP" represents in respect of both foreign and local insurance business:
(i) premiums net of reinsurances; and
(ii) investment income;
(c) "TT" represents tax in respect of both foreign and local insurance business.
3. For the purposes of this Schedule :
(a) "Foreign insurance business" means insurance business in respect of which the risks
and premiums originate outside the Common Market, and includes investment and
other business activities related to that business;
(b) "tax" includes all amounts payable under section 43, 43A or 44 of this Act, but shall
not include any tax on premiums;
Cap. 15. (c) "Common Market" has the meaning assigned to it by section 6(1) of the Caribbean
Community Act ; and
(d) "premiums" and "premium income" include all business income derived from the
insurance business being carried on, except for investment income.G/SCM/Q3/BRB/9
Page 176
(2) The tax referred to under subsection (1)(b) shall be calculated taking into account the relief
from tax granted in accordance with section 82 or 83.
(3) Paragraphs (a), (b) and (c) of section 19(1) apply to this Schedule .G/SCM/Q3/BRB/9
Page 177
Income Tax
INCOME TAX REGULATIONS, 1969
ARRANGEMENT OF REGULATIONS
Regulation
PART I
Preliminary
1. Short title.
2. Interpretation.
3. Spent .
(Oath of fidelity and secrecy)
4. Oath of fidelity and secrecy.
PART II
Returns of Income
5. Returns of income.
PART III
Information Returns
6. Information returns.
PART IV
Basic Industries
7. Basic industries.
Regulation
PART V
Percentages of Capital Expenditure on Machinery or Plant
Representing Usual Annual Wear and Tear
8. Annual wear and tear.
8A. Cash rebate.
PART VI
Double Taxation Relief
9. Interpretation.
10. Application.
11. Non-residents.
12. Reduction of tax.
13. Limit on credit.G/SCM/Q3/BRB/9
Page 178
14. Calculation.
15. Deduction.
16. Total limit.
17. Foreign tax not chargeable directly on dividend.
18. Idem .
19. Revoked by 1975/106 .
20. Election.
21. Claims.
22. Adjustment of tax.
PART VII
Registered Retirement Plans: Superannuation Funds
23. Interpretation.
24. Application for registration.
25. Conditions subject to which registration may be granted.
Regulation
26. General conditions governing fund.
27. Extent of registration and notice thereof.
28. Commissioner to be notified of any changes in rules etc. of fund.
29. Power of Commissioner to withdraw registration. Notice of withdrawal.
30. Commissioner to be notified of all payments made out of a fund and to be furnished with
returns.
31. Trustees etc. of a fund to furnish Commissioner with information about fund.
32. Accounts of the fund to be kept in accordance with directions of Commissioners.
33. Disposal of assets of fund on winding up.
34. Funds approved under Income Tax Act, 1921 .
PART VIII
Registered Retirement Plans: Provident Funds
35. Interpretation.
36. Application for registration.
Regulation
37. Conditions subject to which registration may be granted.
38. General conditions governing fund.
39. Extent of registration and notice thereof.G/SCM/Q3/BRB/9
Page 179
40. Commissioner to be notified of any changes in rules etc. of fund.
41. Power of Commissioner to withdraw registration. Notice of withdrawal.
42. Commissioner to be notified of all payments made out of a fund and to be furnished with
returns.
43. Trustees etc. of a fund to furnish Commissioner with information about fund.
44. Accounts of the fund to be kept in accordance with directions of Commissioners.
45. Disposal of assets of fund on winding up.
46. Funds approved under Income Tax Act, 1921 .
Regulation
PART IX
Registered Retirement Plans: Annuity Contracts
47. Interpretation.
48. Application for registration.
49. Conditions subject to which registration may be granted.
50. Permitted provisions in annuity contracts.
51. Registration.
52. Changes in annuity contracts.
53. Withdrawal of registration.
54. Commissioner to be notified of payments under annuity contracts and to be provided with
returns.
55. Annuity contracts approved under Income Tax Act, 1921 .
PART IX A
Registered Retirement Savings Plans
55A. Interpretation.
55B. Application for registration.
55C. Conditions subject to which registration may be granted.
55D. Permitted provisions in annuity contracts.
55E. Registration.
55F. Withdrawal of registration.
55G Changes in conditions of plan.
55H. Commissioner to be notified of payments under annuity contracts and to be provided with
returns.G/SCM/Q3/BRB/9
Page 180
PART X
Tax Deductions for Employed Persons
56. Interpretation.
57. Declarations by persons receiving emoluments.
58. Principal and immediate employers.
Deduction of Tax
59. Deduction of tax.
60. Bonuses and retroactive increases of emoluments.
61. Deduction of tax and other amounts in accordance with directions of Commissioner.
62. Death of employee.
63. Exempt emoluments.
64. Limit.
65. Determination by Commissioner.
Payment of Tax Deducted
66. Payment of tax deducted.
Accounting for Tax Deducted
67. Returns.
68. Prior years retroactivity returns.
69. Certificates.
70. Cessation of employment.
71. Cessation of business.
72. Death of employee.
73. Particulars to be furnished to employees.
74. Records.
Miscellaneous
75. Death of employer.
76. Changes in employer carrying on business.
77. Declarations.
78. Tax tables.
79. Inspection of records.
80. Complaints.
81. Idem .G/SCM/Q3/BRB/9
Page 181
82. Publication.
83. Proceedings to recover unpaid amounts.
84. Offences.
85. Idem .
86. Idem .
87. Idem .
88. Certain actions barred and agreements void.
89. Special tables for self-assessment by individuals under section 52(5).
89A. Revoked by 1987/4 .
PART XI
Tax Deductions on Payments to Non-Residents
90. Interest.
90A. Rents.
90B. Royalties.
91. Payments under settlements.
92. Revoked by 1993/63 .
93. Dividends from untaxed profits.
93A. Payment of accounts on account or in satisfaction of management fees etc.
93B. Rate of withholding tax.
94. Payment of amounts deducted.
95. Returns.
PART XII
Withholding Tax on Dividends
96. Withholding tax on dividends.G/SCM/Q3/BRB/9
Page 182
Income Tax
Cap. 73
INCOME TAX REGULATIONS, 1969
Authority: These regulations were made on 31 May 1969 by the
Minister under section 84 of the Income Tax Act .
Commencement: 30 June 1969.1969/109.
1970/154.
1972/31.
1975/106.
1978/52.
1980/53.
1981/141.
1981/142.
1983/165.
1984/59.1985/136.
1987/4.
1988/66.
1990/88.
1993/63.
1996/62.
1998/155.
PART I
Preliminary
Short title
1. These Regulations may be cited as the Income Tax Regulations, 1969 .
Interpretation. Cap. 73
2. In the Regulations:
"Act" means the Income Tax Act ;
"section" means a section of the Act.
3. Spent .
Oath of Fidelity and Secrecy
4. The oath of fidelity and secrecy to be taken and subscribed by the Commissioner, the
members of the income Tax Appeal Board and the officers and other persons employed to administer
and enforce the Income Tax Act , and other laws relating to income tax shall be in the following form:
I, ………………………………………………… being a person engaged in the administration and
enforcement of the Income Tax Act , Cap. 73 and other laws relating to Income Tax, do swear that I
will faithfully maintain and aid in maintaining the secrecy of all matters which shall come to my
knowledge by reason of such engagement, and I will not communicate any such matter to any person
except for the purpose of carrying into effect the provisions of the Income Tax Act , Cap. 73, any act
amending that act, any other act relating to income taxes or any other act relating to the imposition of
taxes or duties payable to the Crown or the Government of Barbados.
SO HELP ME GOD.
PART II
Returns of Income
Returns of income. 1978/52
5. The information to be supplied in a return of income is such information as is demanded in
the prescribed form of return of income, together with such additional information as is demanded,G/SCM/Q3/BRB/9
Page 183
either orally or in writing, on behalf of the Commissioner, at the time when the prescribed form of
return of income is delivered to the taxpayer.
PART III
Information Returns
Information returns
6.(1) Every person who has paid or credited an amount in an income year as:
(a) A dividend;
(b) interest on money lent or money on deposit, whether secured or not;
(c) an annuity;
1993/63. (d) a retirement plan benefit; or
1993/63. (e) a retiring allowance;
shall make an information return in prescribed form to the Commissioner on or before
28 February of the year following that income year showing the name and address of the person to
whom the amount was paid or credited and the amount that was paid or credited to that person in that
income year.
(2) Every person, including every attorney-at-law or real estate agent, who has received or
credited rents or interest on behalf of a client in an income year shall make an information return in
prescribed form to the Commissioner on or before 28 February in the year following that income year
showing the name and address of the client and the amount that was received or credited on behalf of
that client in that income year.
1978/52. 1993/63
(3) Paragraph (1) does not apply where tax that is payable on interest by virtue of sections 48B,
64 and 64C has been withheld; but those persons charged with the withholding of the tax shall, not
later than 28 February in the year following the income year in which the tax was withheld, make an
information return to the Commissioner, and send a copy thereof to the person entitled to the interest,
on a form prescribed under section 84(2) showing:
(a) The name and address of the person to whom the interest was paid or credited;
(b) the amount of interest that was paid or credited during that income year; and
(c) the amount of tax that was withheld from that interest for that income year.
1993/63
(4) The rate at which tax shall be withheld in pursuance of section 64C is 12.5 per cent per
annum, and shall be paid to the Commissioner not later than the fifteenth day of the month following
the month in which the tax has been withheld; and each payment shall be accompanied by a return
made out in such form as the Commissioner approves.G/SCM/Q3/BRB/9
Page 184
1984/59. 1993/63
(5) The amount of tax to be withheld for the purpose of section 64 in respect of the payment
referred to in subsection (1)(d) is 25 per cent and the tax so withheld shall be paid to the
Commissioner within seven days of making the payment and shall be accompanied by a return made
out in such form as the Commissioner approves.
(6) The person withholding the tax under this regulation shall forward to the individual in respect
of whom the payment is made two copies of return which must contain the following particulars:
(a) The name and address of the individual to whom the payment is made;
(b) the amount of payment; and
(c) the amount of tax withheld in respect of the payment.
PART IV
Basic Industries
Basic industries. Cap. 73
7. The industries described below are hereby declared to be basic industries for the purposes of
theIncome Tax Act , namely:
(a) The manufacture and refining of sugar and its by-products;
(b) the distilling of rum;
(c) the manufacture of textiles, hats, shirts, suits, dresses, hosiery and clothes of every
kind, leather goods and footwear, plastic and plastic goods, cement, bricks, tiles and
concrete blocks for building purposes, nails, screws, bolts and metallic fasteners of all
kinds, furniture and prefabricated houses and components thereof in wood or metal,
radios, television sets, phonographs, refrigerators and stoves, glass, china and
earthenware, paper, plywood, veneers, woodpulp, packages, crates, cans, bags and
twine, watches, clocks and other scientific measuring devices, fertilizers, chemicals,
paints, varnishes, lacquers, ice, condiments and preserves, edible oil, fats, soaps and
allied products, spirit compounds, bay rum and perfumed spirits and methylated
spirits;
(d) the manufacture, canning or other preserving and packaging of food products;
(e) the working of any mine, oil well or other mineral deposits and the manufacture,
refining and processing of minerals or oil and their derivatives;
(f) the operation of an electricity undertaking;
(g) the operation of a natural gas undertaking;
(h) the operation of an oil refinery or petroleum distribution undertaking;
(i) the provision of warehouses or cold storage operated as an independent service;
(j) the operation of a dock undertaking including any dock for repairing ships; andG/SCM/Q3/BRB/9
Page 185
1985/136. (k) the assembling and testing of integrated circuits.
PART V
1981/141.
Percentages of Capital Expenditure on Machinery or Plant
Representing Usual Annual Wear and Tear
Annual wear and tear. 1981/141
8. For the classifications of machinery or plant listed below, the percentage set out opposite the
description of each classification is deemed to be the just and reasonable percentage of the capital
expenditure of that machinery or plant that represents the annual wear and tear on that machinery or
plant, unless in a particular case there is an exceptional circumstance that causes some other
percentage to be more just and reasonable in that particular case:
Percentage
Agriculture ....................................................................................................
Electrical installation, including motors ....................................................... 10
Motor lorries ................................................................................................. 20
Cultivators ..................................................................................................... 20
Plough drawn by cultivators ......................................................................... 15
Animal-drawn ploughs .................................................................................. 10
Air-conditioning plant ................................................................................... 12½
Biscuit machinery and plant .......................................................................... 10
Bakery machinery and plant ......................................................................... 10
Bicycles ......................................................................................................... 20
Bookbinding general machinery ................................................................... 10
Brick manufacture
Conveyors, mixers, pumps, crushing plant, and kilns (excluding sheds) ... 10
Carts and spiders ........................................................................................... 5
Cigarette manufacturing machinery .............................................................. 10
Cinematograph
Machinery ................................................................................................... 20
Seating ........................................................................................................ 7½
Clothing trade
Steam boilers, engines and similar machinery and plant ............................ 5
Electrical apparatus ....................................................................................... 10
General machinery including sewing machines ............................................ 10
1996/62. Computer equipment ........................................................................... 33½
Cotton and copra crushing and refining plant ............................................... 10
Cranes
Steam and hand ........................................................................................... 5
Electric ........................................................................................................ 7½
Creameries, dairies, ice factories
General machinery and plant ...................................................................... 10
Steam boilers and engines ........................................................................... 5
Refrigerators ............................................................................................... 20
Diesel electric generating plant ..................................................................... 12½
Electric lighting
Underground cables .................................................................................... 4
Overhead mains .......................................................................................... 5
Meters ......................................................................................................... 12½
General plant ............................................................................................... 5
Electric lifts ................................................................................................... 10G/SCM/Q3/BRB/9
Page 186
Percentage
Engineering workshops
Heavy plant ................................................................................................. 5
Electrical equipment ................................................................................... 10
Welding plant, tools and instruments .......................................................... 20
Lathes and milling machines ....................................................................... 10
Furniture
Hotel .......................................................................................................... 20
Other .......................................................................................................... 10
Garages
Gasoline tanks plus electric pumps ............................................................. 10
Gas
Stoves .......................................................................................................... 20
Gas holders .................................................................................................. 4
Meters ......................................................................................................... 20
Other plant .................................................................................................. 5
Laundry and dry cleaning ............................................................................. 10
Mineral water plant
Modern electrical ........................................................................................ 15
Steam .......................................................................................................... 5
Motor cars, lorries, omnibuses, vans, traction and hauling equipment ......... 20
Neon signs ..................................................................................................... 10
Office appliances
Accounting, adding, calculating, cash registers and duplicating machines 12½
Typewriters ................................................................................................. 10
Oil boring machinery .................................................................................... 20
Oil tank and pumps ....................................................................................... 5
Printing
Steam engines and boilers ........................................................................... 5
Plant .......................................................................................................... 7½
Type .......................................................................................................... 20
Linotype and monotype boiling .................................................................. 10
Photographic equipment ............................................................................... 20
Pottery
Steam engines and boilers .......................................................................... 20
Conveyors, kilns, crushing plant and similar machinery and plant ............ 10
Radio equipment
Amplifiers and receivers ............................................................................. 20
Lines and speakers ...................................................................................... 10
Rum refining plant and breweries
Boilers, vats and similar machinery and plant ............................................ 5
Stills .......................................................................................................... 7½
Pumps .......................................................................................................... 10
Shipping
Sailing ......................................................................................................... 5
Lighters ....................................................................................................... 5
Launches
(i) Pleasure and deep fishing launches ....................................................... 10
(ii) flying fish launches ............................................................................... 20
Sugar manufacture
Steam engines, boilers, mills, subsiders, tanks, evaporators, vacuum pans,
crystallizers, pipes, hoists, cooling towers and molasses tanks .................. 5
Electrical machinery, pumps, sewing machines and fans ............................. 10
Filters (Oliver Campbell) and centrifugals, scale beams and weighbridges 7½G/SCM/Q3/BRB/9
Page 187
Percentage
Timber merchants
Steam engines and boilers ........................................................................... 5
Saw milling machinery and electrical motors ............................................. 10
1996/62. Water saving devices ........................................................................... 100
Windmills ...................................................................................................... 5
Cash rebate. 1981/141
8A. For the purposes of section 12A, the amount to be allowed as a cash rebate shall be calculated
in accordance with the following:
Basis of calculation Percentage of capital
expenditure
(i) In the case of all agricultural machinery or plant, except
sugar chopper harvesters ..................................................... 18%
(ii) In the case of sugar cane chopper harvesters bought by a
harvesting company or harvesting cooperative that carries on
business solely for the purpose of owning and operating
sugar can harvesting machinery and of using such machinery
on at least two separately owned land holdings .................. 15%
(iii) In the case of a sugar cane chopper harvester bought by any
other person ......................................................................... 10%
PART VI
Double Taxation Relief
Interpretation
9. In the part, the expression:
(a) "Agreement" means an agreement of the type referred to in subsection (1) of
section 83;
(b) "designated income" means income subject to both income tax and foreign tax and
that is designated in an agreement as income, the tax, on which is to be allowed as a
credit against income tax;
(c) "foreign tax" means the tax payable under the laws of a country or territory with
which Barbados has made an agreement and that is to be allowed under the terms of
the agreement as a credit against income tax; and
(d) "income tax" means tax payable under the Act.
Application
10. The part applies where foreign tax of a person is to be allowed as a credit against the income
tax of that person under an agreement.G/SCM/Q3/BRB/9
Page 188
Non-residents
11. No credit shall be allowed for an income year to a person who is a non-resident for that
income year.
Reduction of tax
12. The amount of the income tax chargeable in respect of the income shall be reduced by the
amount of the credit.
Limit on credit
13. The credit shall not exceed the amount that would be the tax on the amount of the designated
income if the designated income was calculated in accordance with the Act and if the designated
income was charged to income tax at the rate obtained by dividing the income tax chargeable on the
total assessable income, before allowance of credit in respect of double taxation, by the amount of the
total assessable income.
Calculation
14. In calculating the amount of the designated income, and, for the purposes of Regulation 13, in
calculating the amount of the total assessable income:
(a) No deduction shall be allowed in respect of foreign tax, whether in respect of the
same or any other income;
(b) where the income includes an amount described in paragraph (c) of section 17, that
amount shall be increased by the amount of the foreign tax in respect of that amount;
and, only in calculating the amount of the designated income, but not in calculating the
amount of the total assessable income;
(c) where the income includes an amount as a dividend and, under the agreement, foreign
tax not chargeable directly or by deduction in respect of the dividend is to be taken
into account in considering whether any, and, if so, what credit is to be given against
income tax in respect of the dividend, that amount shall be increased by the foreign
tax not so chargeable which falls to be taken into account in computing the credit.
Deduction
15. Notwithstanding Regulation 14, in calculating the amount of the designated income for the
purpose of determining the assessable income, the taxable income and the final amount of tax, but not
in calculating the amount of the designated income for the purpose of Regulation 13, a deduction shall
be allowed of any amount by which the foreign tax in respect of the designated income exceeds the
credit therefor.
Total limit
16. The total credit for foreign tax to be allowed to a person in respect of any income year under
all agreements to which this part extends shall not exceed the total income tax payable by the person
on his own behalf for that income year.G/SCM/Q3/BRB/9
Page 189
Foreign tax not chargeable directly on dividend
17.(1) Where, in the case of any dividend, foreign tax not chargeable directly or by deduction in
respect of the dividend is, under the agreement, to be taken into account in considering whether any,
and, if so, what credit is to be given against income tax in respect of the dividend, the foreign tax not
so chargeable which is to be taken into account shall be that borne by the company paying the
dividend upon the relevant profits.
(2) In determining the relevant profits for the purpose of paragraph (1), the following rules apply:
(a) The relevant profits are the profits in relation to which the foreign tax is charged and
out of which the dividend is paid;
(b) if the dividend is paid for a specific period, the relevant profits are the profits
described in subparagraph (a) for the specified period;
(c) if the dividend is not paid for a specified period but is paid out of specified profits,
the relevant profits are the profits described in subparagraph (a) that are the specified
profits;
(d) if the dividend is paid neither for a specified period nor out of specified profits, the
relevant profits are the profits for the last period for which the accounts of the
company were made up and which ended before the dividend became payable and
which are the profits described in subparagraph (a); and
(e) if, in a case within subparagraph (b) or (d), the total dividend exceeds the profits
available for distribution for the periods mentioned in those subparagraphs, the
relevant profits are the profits described in subparagraph (a) that were the profits for
the periods mentioned in subparagraph (b) or (d), as the case may be, plus so much of
the profits available for distribution of preceding periods, other than profits
previously distributed or previously treated as relevant for the purposes of this
regulation, as is equal to the excess; and, for the purposes of this subparagraph, the
profits of the most recent preceding period shall first be taken into account, then the
profits of the next most recent preceding period, and so on.
Idem
18. Where:
(a) The agreement provides in relation to dividends some classes, but not in relation to
dividends of other classes, that foreign tax not chargeable directly or by deduction in
respect of dividends is to be taken into account in considering whether any, and if so,
what credit is to be given against income tax in respect of the dividends; and
(b) a dividend is paid which is not of a class in relation to which the agreement so
provides;
then, if the dividend is paid to a company which controls, directly or indirectly, not less than
one half of the voting power of the company paying the dividend, credit shall be allowed as if
the dividend were a dividend of a class in relation to which the agreement so provides.
1975/106.
19. Revoked by S.I. 1975/106 .G/SCM/Q3/BRB/9
Page 190
Election
20. If a person elects that no credit shall be allowed against his income tax for an income year
then no credit shall be allowed for that income year.
Claims
21. Any claim for a credit shall be made not later than four years after the end of the relevant
income year, and in the event of any dispute as to the amount allowable, the claim shall be subject to
objection and appeal in the same manner as an assessment.
Adjustment of tax
22. Where the amount of any credit is rendered excessive or insufficient by reason of any
adjustment of the amount of any tax payable either in Barbados or elsewhere, nothing in the Act
limiting the time for making an assessment or a claim for relief shall apply to any assessment or claim
to which the adjustment gives rise, being an assessment or claim made not later than three years from
the time when all such assessment, adjustments and other determinations have been made, whether in
Barbados or elsewhere, as are material in determining whether any, and, if so, what credit falls to be
given.
PART VII
Registered Retirement Plan: Superannuation Funds
Interpretation
23. In this part, the expression:
(a) "Contribution" means an annual contribution to a superannuation fund fixed in
amount or computed by reference to the remuneration, contributions or number of the
members of the fund;
(b) "employee" means an employee participating in a superannuation fund;
(c) "employer" means a person carrying on a trade, profession or undertaking wholly or
partly in Barbados;
(d) "fund" means a superannuation fund;
(e) "remuneration" means any salary or emolument but does not include any bonus or
overtime payment;
(f) "superannuation fund" means any superannuation fund or scheme which has been
established by an employer for the payment of pensions, annuities and gratuities:
(i) To his employees in respect of service with him on the retirement of such
employee from his service; or
(ii) to dependants of such employees on the death of such employees.G/SCM/Q3/BRB/9
Page 191
Application for registration
24. Application for the registration of a superannuation fund as a registered retirement plan shall
be made to the Commissioner in writing by the employer in connection with whose trade, profession,
or undertaking the fund is established or proposed to by established or by the trustees of the fund, and
shall be accompanied by a copy of the deed under which the fund is established or proposed to be
established and by a copy of the rules of the fund and such further information as the Commissioner
may require.
Conditions subject to which registration may be granted
25. Registration of a superannuation fund as a registered retirement plan shall not be granted
unless it is shown to the satisfaction of the Commissioner that:
(1)(a) The fund is bona fide established or proposed to be established under an irrevocable
trust deed in connection with the trade, profession, or undertaking carried on wholly
or partly in Barbados by the employer; or
(b) the benefits of the fund established or proposed to be established as aforesaid are or
will be insured by a bona fide insurance company carrying on business in Barbados.
(2) the fund has as its main object the provision of pensions or annuities which may,
subject to this part, be commuted, for persons employed in the trade, profession, or
undertaking in connection with which it has been or is proposed to be established,
either on retirement from the service of the employer on or after attaining a specified
age, or on earlier retirement on becoming incapacitated, or on the death of such
persons, for their widows, children or dependants;
(3) the employer in the trade, profession or undertaking is a contributor to the fund;
(4) the rules of the fund provide that:
(a) No benefits payable under it shall be capable of surrender or assignment;
(b) the maximum pension or annuity shall not exceed two-thirds of the
remuneration of the employee at the date of his retirement;
(c) not more than 25 per cent of the benefits payable may be commuted and paid
in the form of a tax-free lump sum and where the benefits payable would not
provide a pension or annuity exceeding $240 per annum such benefits may
also be paid in the form of a tax-free lump sum;
(d) in any case where the employer is a company, no director, other than a whole
time service director of such company shall be entitled to any payment from
such fund and no contribution shall be made to such fund in respect of his
service as such as director; and, for the purpose of this rule a "whole time
service director" is a director who is required to devote substantially the
whole of his time to the service of his company;
(e) no pension or annuity shall be paid otherwise than on the retirement of such
employees on or after attaining the age of 60 years in the case of males and
55 years in the case of females or on optional retirement within five years of
the relevant age mentioned in this subparagraph or on being incapacitated at
some earlier age;G/SCM/Q3/BRB/9
Page 192
(f) upon the termination of the service of an employee in circumstances in which
he is not entitled to the employer's contribution or the benefits secured by the
employer's contribution, such employee shall be refunded, with or without
interest, the contributions paid by him or he may surrender for cash any
policy of insurance or pension bond provided by his own contributions;
(g) upon the termination of the service of an employee before any of the ages
specified in subparagraph (e) of this paragraph in circumstances in which he
is entitled to not less than 50 per cent of the employer's contributions or the
benefits secured by the employer's contributions, such employee shall be
refunded:
(i) With or without interest the contributions paid by him or he may
surrender for cash any policy of insurance or pension bond provided
by his own contributions; and
(ii) the employer's contributions or the benefits secured by the employer's
contributions; and
(h) no employee who is entitled to benefits from another approved
superannuation fund shall contribute to, or receive any benefit from such fund
without the approval in writing of the Commissioner who may attach such
conditions thereto as he may think fit.
General conditions governing fund
26. The fund shall be open to all employees or all of those in a defined category and the nature of
the benefits shall be the same in relation to all employees to whom the fund relates.
Extent of registration and notice thereof
27.(1) The Commissioner may register as a registered retirement plan, either wholly or in part, any
superannuation fund which in his opinion, complies substantially with the conditions set out in this
part.
(2) The Commissioner shall as soon as practicable give to the applicant notice of his registration
to the fund or of his refusal to register the fund and where he registers the fund the notice shall specify
the date from which it is registered.
Commission to be notified of any changes in rules etc. of a fund
28. If any alteration in the rules, constitution or conditions of a fund, is made at any time after the
date of application for registration thereof, the employer, trustees or persons having the management
of the fund shall forthwith in writing notify the Commissioner of such alterations, and in default of
such notification any registration granted shall, unless the Commissioner otherwise orders, be deemed
to have been withdrawn as from the date from which the alterations had effect.
Power of Commissioner to withdraw registration. Notice of withdrawal
29.(1) The Commissioner may at any time withdraw his registration of a superannuation fund which
in his opinion no longer complies substantially with the conditions set out in this part.G/SCM/Q3/BRB/9
Page 193
(2) The Commissioner shall give to the employer, trustees or persons having management of the
fund notice of such withdrawal and the date from which it is to take effect.
Commissioner to be notified of all payments made out of a fund and to be furnished with returns.
1987/4
30. The employer or trustees or persons having management of any superannuation fund shall
notify the Commissioner of all payments made out of any such fund and of all payments to an
employee, who is or was a contributor to any such fund and shall not make any payment out of any
such fund which is a return of contributions without the prior approval in writing of the
Commissioner.
Trustees etc. of a fund to furnish Commissioner with information about fund
31. The trustees and persons having the management of any superannuation fund and any
employer who contributes to any such fund shall when required by notice from the Commissioner,
within the time limited in the notice, being not less than 14 days, furnish the Commissioner with such
information and particulars in connection with the fund as he may require.
Accounts of the fund to be kept in accordance with directions of Commissioners
32. The accounts of a superannuation fund shall be maintained in such form and for such periods
and shall contain such particulars as the Commissioner may direct.
Disposal of assets of fund on winding up
33. Where a fund is wound up, the assets thereof shall be applied in the provision of benefits of a
like nature to which the employee or his dependants was or were entitled under such fund
immediately before it was wound up and if there are any surplus assets after such provision, in the
provision of enhanced benefits of a like nature for such employee or his dependants.
Funds approved under Income Tax Act, 1921
34. A superannuation fund approved under section 18A of the Income Tax Act, 1921 , shall be
deemed to be registered as a registered retirement plan for the purposes of the Act, unless or until the
registration is withdrawn or cancelled.
PART VIII
Registered Retirement Plans: Provident Funds
Interpretation
35. In this part, the expression:
(a) "Contribution" means an annual contribution to a provident fund fixed in amount or
computed by reference to the remuneration, contributions or number of the members
of the fund;
(b) "employee" means an employee participating in a provident fund;
(c) "employer" means a person carrying on a trade, profession or undertaking wholly or
partly in Barbados;
(d) "fund" means a provident fund;G/SCM/Q3/BRB/9
Page 194
(e) "provident fund" means any provident fund or scheme which has been established by
an employer for the payment of lump sums and other benefits:
(i) To his employees in respect of service with him, on such employees leaving
his service after a specified period of service; or
(ii) to dependants of such employees on the death of such employees.
(f) "remuneration" means any salary or emolument but does not include any bonus or
overtime payment.
Application for registration
36. Application for the registration of a provident fund as a registered retirement plan shall be
made to the Commissioner in writing by the employer in connection with whose trade, profession, or
undertaking the fund is established or proposed to be established or by the trustees of the fund, and
shall be accompanied by a copy of the deed under which the fund is established or proposed to be
established and by a copy of the rules of the fund and such further information as the Commissioner
may require.
Conditions subject to which registration may be granted
37. Registration of a fund as a registered retirement plan shall not be granted unless it is shown to
the satisfaction of the Commissioner that:
(1)(a) The fund is bona fide established or proposed to be established under an irrevocable
trust deed in connection with the trade, profession, or undertaking carried on wholly
or partly in Barbados by the employer; or
(b) the benefits of the fund established or proposed to be established as aforesaid are or
will be insured by a bona fide insurance company carrying on business in Barbados.
(2) the fund has as its main object the provision of pensions or annuities which may,
subject to this part, be commuted, for persons employed in the trade, profession, or
undertaking in connection with which it has been or is proposed to be established,
either on retirement from the service of the employer on or after attaining a specified
age, or on earlier retirement on becoming incapacitated, or on the death of such
persons, for their widows, children or dependants;
(3) the employer in the trade, profession or undertaking is a contributor to the fund;
(4) the rules of the fund provide that:
(a) No sum payable to any employee shall be capable of surrender or
assignment;
(b) the employer shall not have any charge or lien on or right to any contribution
to such fund by any employee or any interest therein;
(c) except where the contributions are by way of premiums paid to an insurance
company, the contributions to the fund in respect of an employee shall be
credited to the employee's individual account in the fund at intervals not
exceeding one year;G/SCM/Q3/BRB/9
Page 195
(d) the fund shall only relate to employees remunerated at a rate of $3,600 a year
or less or, where the benefits are insured, to employees whose benefits under
the fund do not exceed two years remuneration so however that the benefits
payable do not exceed $7,200;
(e) except where the fund is insured such fund shall comprise only contributions
by the employer in respect of his employees and contributions by the
employees, any reasonable interest paid on such contributions, and any
securities purchased out of the amount standing to the credit of such fund
together with the interest paid on such securities;
(f) in any case where the employer is a company, no director, other than a whole
time service director of such company shall be entitled to any payment from
such fund and that no contribution shall be made to such fund in respect of
his service as such a director; and for the purposes of this rule a "whole time
service director" is a director who is required to devote substantially the
whole of his time to the service of the company and is not the beneficial
owner of, or able either directly or indirectly to control more than 5 per cent
of the share capital or voting power of such company;
(g) no employee who is entitled to benefits from another approved provident
fund shall contribute to, or receive any benefits from such fund without the
approval in writing of the Commissioner who may attach such conditions
thereto as he may think fit:
(h) no sum shall be paid to any employee during his service with the employer;
(i) no sum contributed by the employer shall be paid to any employee otherwise
than on the retirement of such employee on or after attaining the age of
60 years in the case of males and 55 years in the case of females or on
optional retirement within five years of the relevant age mentioned in this
subparagraph or on being incapacitated at some earlier age;
(j) in the event of death of such employee no sum other than the sum standing to
the credit of such employee in the fund at the time of his death or the amount
insured shall be paid to the widow or any dependant of such employee;
(k) the contributions of such employee to the fund together with reasonable
interest thereon, or, where the benefits are insured, the benefits secured by the
employee's contributions shall be paid to such employee who has left the
service of such employer in circumstances in which he is not entitled to the
employer's contributions; and
(l) any sum due to such employee out of such fund shall be paid to him as soon
as practicable after he leaves such service or in the event of his death shall be
paid to the person entitled thereto as soon as practicable after such death.
General conditions governing fund
38. The fund shall be open to all employees or all of those in a defined category and the nature of
the benefits shall be the same in relation to all employees to whom the fund relates.G/SCM/Q3/BRB/9
Page 196
Extent of registration and notice thereof
39.(1) The Commissioner may register as a registered retirement plan, either wholly or in part, any
provident fund which in his opinion, complies substantially with the conditions set out in this part.
(2) The Commissioner shall, as soon as practicable, give to the applicant notice of his registration
to the fund or of his refusal to register the fund and where he registers the fund the notice shall specify
the date from which it is registered.
Commission to be notified of any changes in rules etc. of a fund
40. If any alteration in the rules, constitution or conditions of a fund, is made at any time after the
date of application for registration thereof, the employer, trustees or persons having the management
of the fund shall forthwith in writing notify the Commissioner of such alterations, and in default of
such notification any registration granted shall, unless the Commissioner otherwise orders, be deemed
to have been withdrawn as from the date from which the alterations had effect.
Power of Commissioner to withdraw registration. Notice of withdrawal
41.(1) The Commissioner may at any time withdraw his registration of a provident fund which in his
opinion no longer complies substantially with the conditions set out in this part.
(2) The Commissioner shall, as soon as practicable, give to the employer, trustees or persons
having management of the fund notice of such withdrawal and the date from which it is to take effect.
Commissioner to be notified of all payments made out of a fund and to be furnished with returns
42.(1) The employer or trustees or persons having management of any provident fund shall notify
the Commissioner of all payments made out of any such fund and of all payments to an employee
who is or was a contributor to any such fund and shall not make any payment out of any such fund
which is a return of contributions without the prior approval in writing of the Commissioner.
(2) Where any payment is made out of any such fund by way of pension or annuity to any person
who was an employee and a contributor to such fund or to any dependent of such person, the
employer, trustees or persons having the management of the fund shall render the returns required to
be rendered by employers under Part X, and deduct income tax in accordance with the provisions of
the said Part as if such persons were employers of the person to whom such payment is made.
(3) Where any payment is made by an insurance company by way of pension or annuity to a
person who was an employee and a contributor to such fund or to any dependant of such person, the
company shall render to the Commissioner such returns as the Commissioner may require.
Trustees etc. of a fund to furnish Commissioner with information about fund
43. The trustees and persons having the management of any provident fund and any employer
who contributes to any such fund shall when required by notice from the Commissioner, within the
time limited in the notice, being not less than 14 days, furnish the Commissioner with such
information and particulars in connection with the fund as he may require.
Accounts of the fund to be kept in accordance with directions of Commissioners
44. The accounts of a provident fund shall be maintained in such form and for such periods and
shall contain such particulars as the Commissioner may direct.G/SCM/Q3/BRB/9
Page 197
Disposal of assets of fund on winding up
45. Where a fund is wound up, the assets thereof shall be applied in the provision of benefits of a
like nature to which the employee or his dependants was or were entitled under such fund
immediately before it was wound up and if there are any surplus assets after such provision, in the
provision of enhanced benefits of a like nature for such employee or his dependants.
Funds approved under Income Tax Act, 1921
46. A provident fund approved under section 18A of the Income Tax Act, 1921 shall be deemed to
be registered as a registered retirement plan, unless or until the registration is withdrawn or cancelled.
PART IX
Registered Retirement Plan: Annuity Contracts
Interpretation
47. In this part, the expression:
(a) "Annuitant" means an individual to whom, under an annuity contract, any annuity for
life is agreed to be paid or provided;
(b) "annuity contract" means a contract between an individual and a person authorized to
carry on in Barbados the business of granting annuities on human life under the terms
of which an annuity for life is agreed to be paid or provided;
1972-31 (c) "individual" means an employee or person who is in receipt of income derived from a
business carried on by him as an individual, or in the case of a partnership, as a
partner personally acting therein;
(d) "maturity" means the date fixed under an annuity contract for the commencement of
any annuity the payment of which is provided for by the contract; and
(e) "premium" means any periodic amount paid or payable as consideration under an
annuity contract.
Application for registration
48. Application for the registration of an annuity contract as a registered retirement plan shall be
made to the Commissioner in writing by one of the parties to the contract and shall be accompanied
by a copy of the contract and such other information as the Commissioner may require.
Conditions subject to which registration may be granted
49. Registration of an annuity contract as a registered retirement plan shall not be granted unless
it is shown to the satisfaction of the Commissioner that:
(a) The premiums under the annuity contract are to be paid by the annuitant;
(b) subject to Regulation 50, the annuity contract does not:
(i) Provide for the payment during the life of the annuitant of any sum, other
than a premium, except sums payable by way of annuity to the annuitant or to
a widow or widower of the annuitant;G/SCM/Q3/BRB/9
Page 198
(ii) provide for the annuity payable to the annuitant to commence before
retirement or maturity;
(iii) provide for the payment by the person carrying on the business of granting
annuities of any other sums except sums payable by way of annuity to the
annuitant's widow or widower and any sums which, in the even of no annuity
becoming payable either to the annuitants or to a widow or widower of the
annuitant, are payable to the annuitant's legal representatives by way of return
of premiums or of reasonable interest on such premiums or of bonuses out of
profits;
(iv) provide for the annuity, if any, payable to the widow or widower of the
annuitant to be of a greater annual amount than that paid or payable to the
annuitant; or
(v) provide for the payment of an annuity otherwise than for the life of the
annuitant or of the widow or widower of the annuitant; and
(c) the annuity contract includes a provision stipulating that no annuity payable under it
shall be capable, either in whole or in part, of surrender, commutation or assignment.
Permitted provisions in annuity contracts
50. The Commissioner may register an annuity contract as a registered retirement plan, which
otherwise satisfies the conditions of Regulation 49, notwithstanding that the annuity contract;
(a) Provides for the payment after the annuitant's death of an annuity to a dependant who
is not the widow or widower of the annuitant;
(b) provides for the payment to the annuitant of an annuity commencing before
retirement or maturity if the annuity is payable in his becoming incapable through
infirmity of mind or body of carrying on his own profession, vocation, trade or
business of a similar nature for which he is trained or fitted;
(c) provides for the continuation of the payment of the annuity to any person for a term
certain, not exceeding ten years, notwithstanding his death within that term, or for the
termination or suspension on marriage or remarriage or in other circumstances, of the
payment to any person of the annuity; or
(d) in the case of an annuity which is to continue for a term certain, provides for the
annuity to be assignable by will, or in the event of the death of any person to whom
such annuity is payable, to be assignable by the legal representatives of such person
in the distribution of his estate so as to give effect to a testamentary disposition, or to
the rights of any person entitled on intestacy, or to its appropriation to a legacy or to a
share or interest in the estate.
Registration
51.(1) The Commissioner may register as a registered retirement plan any annuity contract that
complies with the conditions of this part.G/SCM/Q3/BRB/9
Page 199
(2) The Commissioner shall, as soon as practicable, give to the applicant notice of his registration
of the annuity contract or of his refusal to refusal to register the annuity contract and where he
registers the annuity contract the notice shall specify the date from which it is registered.
Changes in annuity contracts
52. If an alteration is made to an annuity contract after the date of application for registration of
the contract, the annuitant shall forthwith in writing notify the Commissioner of the alteration, and in
default of such notification any registration granted shall, unless the Commissioner otherwise orders,
be deemed to have been withdrawn as from the date from which the alteration had effect.
Withdrawal of registration
53.(1) The Commissioner may at any time withdraw his registration of an annuity contract which in
his opinion no longer complies with the conditions set out in this part.
(2) The Commissioner shall as soon as practicable give to the parties to the annuity contract
notice of such withdrawal and the date from which it is to take effect.
Commissioner to be notified of all payments under annuity contracts and to be provided with returns
54.(1) A person granting an annuity under an annuity contract shall notify the Commissioner of all
payments made under the contract.
(2) A person granting an annuity under an annuity contract shall render the returns required to be
rendered by employers under Part X, and deduct income tax in accordance with the provisions of the
said Part as if such person was an employer of the person to whom the annuity payment is made.
Annuity contracts approved under Income Tax Act, 1921
55. An annuity contract approved under section 18B of the Income Tax Act, 1921 shall be deemed
to be registered as a registered retirement plan, unless or until the registration is withdrawn or
cancelled.
PART IXA
Registered Retirement Savings Plans
Interpretation. 1998/155
55A. In this Part:
(a) "approved institution" means an institution regulated by the Central Bank or by the
Supervisor of Insurance and also includes a commercial bank, life insurance
company, credit union or trust company;
(b) "contribution" means a fixed contribution paid periodically but at least annually to a
plan;
(c) "plan" means a registered retirement savings plan which has been established by an
approved institution, under which payment of a contribution is made by an individual:
(i) In trust to an approved institution under a trust; orG/SCM/Q3/BRB/9
Page 200
(ii) in trust to an approved institution that is authorized in law to issue investment
contracts providing for the payment to, or to the credit of, the holder thereof
of a fixed or determinable amount at maturity of any periodic or other amount
as a contribution under any such contract between the individual and that
approved institution;
to be used, invested or otherwise applied by the approved institution, as the case may
be, for the purpose of providing to the individual, commencing at maturity, an
annuity for life.
Application for registration. 1998/155
55B. Application for the registration of a plan shall be made to the Commissioner in writing by:
(a) An approved institution in connection with whose trade, profession or undertaking
the plan is established;
(b) the trustees of the plan;
and shall be accompanied by a copy of the contract and such further information as the
Commissioner may require.
Conditions subject to which registration may be granted. 1998/155
55C(1). Registration of the plan shall not be granted unless it is shown to the satisfaction of the
Commissioner that:
(a) The plan shall not provide in whole or in part for the payment of any benefit before
maturity except by way of:
(i) A refund of contributions;
(ii) a payment to the annuitant; or
(iii) the withdrawal of contributions;
(b) no premiums will be paid after the maturity of the plan which shall occur in the year
in which the annuitant attains the age of 65 years;
(c) the retirement income payable under the plan shall not be assigned or surrendered in
whole or part except where the premiums are transferred from the plan directly to
another retirement plan; and
(d) the maturity of the plan will not occur before the age of 55 years.
(2) For the purposes of this regulation "refund of contributions" means any amount paid to a
spouse or beneficiary out of or under the registered retirement savings plan of the annuitant where the
annuitant died before the maturity of the plan and the amount was paid as a consequence of the death.
Permitted provisions in registered retirement savings plans. 1998/155
55D. The Commissioner may register the plan notwithstanding that the plan:
(a) Is adjoined to a contract or other arrangement that is not a retirement savings plan;G/SCM/Q3/BRB/9
Page 201
(b) provides for the payment of a benefit after maturity by way of dividend;
(c) provides for the payment to the annuitant of an annuity commencing before
retirement or maturity if the annuity is payable in his becoming incapable through
infirmity of mind or body of carrying on his own profession, vocation, trade or
business of a similar nature for which he is trained or fitted;
(d) provides for the continuation of the payment of the annuity to any person for a term
certain, not exceeding 15 years, notwithstanding the death of that person within that
term or for the termination or suspension on marriage or remarriage or in other
circumstances, of the payment to any person of the annuity; or
(e) in the case of an annuity which is to continue for a term certain, provides for the
annuity to be assignable by will, or in the event of the death of any person to whom
such annuity is payable, to be assignable by the legal representatives of such person
in the distribution of his estate so as to give effect to a testamentary disposition, or to
the rights of any person entitled on intestacy, or to its appropriation to a legacy or to a
share or interest in the estate;
(f) provides for the direct transfer of funds from a plan to another retirement plan
without incurring any tax liability;
(g) provides for the reinstatement of the plan at any time within two years of the date of
default;
(h) provides for the payment of unscheduled lump-sum premiums;
(i) provides that not more than 25 per cent of the benefits payable may be commuted and
paid in the form of a tax-free lump sum minus any previous withdrawals; and
(j) contains such other terms and provisions as are not inconsistent with what is
mandatory or permitted.
Registration
55E.(1) The Commissioner may register a plan which complies with the conditions of this part.
(2) The Commissioner shall, as soon as practicable, give to the applicant notice of registration of
the plan or of the refusal to register the plan and, where the Commissioner registers the plan, the
notice shall specify the date from which it is registered.
Withdrawal of registration. 1998/155
55F.(1) The Commissioner may at any time withdraw the registration of a plan which in his opinion
no longer complies with the conditions set out in this Part.
(2) The Commissioner shall as soon as practicable give to the parties to the plan notice of any
withdrawal of registration under paragraph (1) and the date from which it is to take effect.
Changes in conditions of plan. 1998/155
55G.(1)Where it is necessary to alter the conditions of a plan, the approved institution:G/SCM/Q3/BRB/9
Page 202
(a) Shall make application to the Commissioner for permission to alter the plan; and
(b) shall not alter the plan until the permission sought has been granted.
(2) Where no application is made pursuant to paragraph (1) and alterations are made to a plan,
any registration made to that plan shall, unless the Commissioner otherwise orders, be deemed to have
been withdrawn as from the date from which the alteration had effect.
Commissioner to be notified of payments under plans and to be provided with returns. 1998/155
55H.(1)Where an approved institution grants an annuity under a plan, that institution shall notify the
Commissioner of all payments made under the contract.
(2) The approved institution which grants the annuity under paragraph (1) shall render to the
Commissioner all returns required to be rendered by employers under Part X, and deduct income tax
in accordance with the provisions of the said part as if that institution was an employer of the person
to whom the annuity payment is made.
PART X
Tax Deduction for Employed Persons
Interpretation. 1987/74
56. In this Part, the expression:
(a) "appropriate from" means a form approved by the Commissioner for use in any
particular case authorized by this Part;
(b) "declaration" means the declaration referred to in Regulation 57;
(c) "employee" means any person in receipt of emoluments;
(d) "employer" means any person paying emoluments whether on his own account or on
behalf of another person; and
1980-12.
1987/4. (e) "total allowances" in relation to an individual means the aggregate of the deductions
to which the individual is entitled under Divisions L to P of Part II of the Act.
Declarations by persons receiving emoluments. 1984/59
57.(1) Subject to paragraphs (2) and (3), any person to whom emoluments are paid may, for the
purposes of enabling the deductions to be made from those emoluments to be calculated with
reference to the total allowances of that person, file with the person making the payment a declaration
in appropriate form containing prescribed information.
1985/136
(2) No declaration may be filed by:
(a) A non-resident;
(b) a person who is specified in, or who complies with any conditions set out in a notice
of the Commissioner, unless he is specifically authorized by the Commissioner to file
a declaration.G/SCM/Q3/BRB/9
Page 203
(3) Where a person who is entitled to file a declaration under this regulation is in receipt of
emoluments from two separate employers he may file a declaration with only one of those employers,
to be selected by him.
Principal and immediate employers
58.(1) Where an employee works under the general control and management of a person who is not
his immediate employer, that person (referred to hereafter in this regulation as the "principal
employer") shall be deemed to be the employer for the purpose of this part, and the immediate
employer shall furnish the principal employer with such particulars of the employee's emoluments as
may be necessary to enable the principal employer to comply with the provisions of this part.
(2) If the employee's emoluments are actually paid to him by the immediate employer:
(a) The immediate employer shall be notified by the principal employer of the amount of
tax to be deducted when the emoluments are paid to the employee and shall deduct
the amount so notified to him accordingly; and
(b) the principal employer shall make a corresponding deduction on making to the
immediate employer the payment out of which the said emoluments will be paid.
Deduction of Tax
Deduction of tax. 1987/4. 1985/136
59.(1) Subject to the provisions of Regulations 60, 61 and 63, on the occasion of any payment of
emoluments to an employee, the employer shall deduct as tax the amount appearing in the appropriate
column of the table of the tax table to be used opposite to that amount appearing in the first column of
the said table which is the same as or the nearest to the amount of the emoluments due to the
employee; but where:
(a) The pay period for which the emoluments are to be paid is not provided for in the tax
tables; or
(b) the emoluments paid per year are greater than any amount provided for in the first
column of the table to be used;
the amount to be deducted shall be determined by the Commissioner.
(2) In the event of the amount of the emoluments due to the employee being an amount exactly
between two amounts appearing in the first column of the table to be used, the tax to be deducted shall
be that amount appearing in the appropriate column of the said table opposite to the larger of the two
such amounts.
(3) For the purposes of this regulation the table of the tax tables to be used shall be that table of
the tax tables prepared by the Commissioner pursuant to Regulation 78 which takes into account total
allowances and corresponds to the pay period for which the emoluments are to be paid, and the
appropriate column shall be the column of the said table appearing under that range of total
allowances specified in the table within which the total allowances of the employee or the greater part
thereof from whom tax is to be deducted is included; but in the case of an employee who is
prohibited from filing a declaration under paragraph (2) of Regulation 57 or who has not filed a
declaration, the table of the tax tables to be used shall be that table prepared by the Commissioner
pursuant to Regulation 78 without taking into account total allowances and which corresponds to theG/SCM/Q3/BRB/9
Page 204
pay period for which the emoluments are to b paid, and the appropriate column shall in such cases be
the second column of that table.
1993/63
(4) For the purposes of making deductions of tax under this regulation, where the employer
retains from the emoluments an amount as a contribution by the employee to a registered retirement
plan the balance remaining after deducting the amount retained shall be deemed to be the amount of
the emoluments due to the employee.
Bonuses and retroactive increases of emoluments
60. On payment of a bonus or on payment of any sum to meet any retroactive increases of
emoluments granted to an employee, the following deductions of tax shall, subject to the provisions of
Regulations 61 and 63, be made by the employer in accordance with the following provisions:
(a) Where the employee is at the date of payment of the bonus in receipt of emoluments
from the employer paying the bonus, then:
(i) The total amount of bonus shall be divided by the number of pay periods
(appropriate to the employer) in the year in which it is paid;
(ii) the resulting amount shall be added to the amount of emoluments (before tax
was deducted) which were payable to the employee in the pay period
immediately preceding the date on which the bonus is paid;
(iii) the amount of tax which should have been deducted in the immediately
preceding pay period aforesaid in respect of such aggregate sum shall be
determined by reference to the appropriate tax table; and
(iv) the amount of tax which should have been deducted from the bonus shall be
the difference between the tax, determined under Clause (iii) and the tax, if
any, actually deducted in the immediately preceding pay periods aforesaid,
multiplied by the number of pay periods in the year;
(b) where the employee is at the date of the payment of the bonus no longer in receipt of
emoluments from the employer paying the bonus the amount of tax to be deducted
shall be the tax for the year in which the bonus is paid shown to be deductible in the
appropriate table prepared by the Commissioner under paragraph (3) of Regulation 78
(which is a table prepared without taking into account any amount of total
allowances); and
(c) in the case of a retroactive payment, the amount of tax to be deducted shall be the
difference between the total tax that should have been deducted pursuant to
Regulation 59 if such payment had been spread evenly over those pay periods for
which the payment is made and added to the amount of emoluments paid over such
pay periods and the amount of tax deducted in respect of those pay periods prior to
the making of the retroactive payment.
Deduction of tax and other amounts in accordance with directions of Commissioner
61.(1) Notwithstanding Regulation 59 the Commissioner may direct employers as to the amount of
tax, if any, to be deducted from:G/SCM/Q3/BRB/9
Page 205
(a) The emoluments of employees who are in receipt of emoluments from more than one
source at the same time; or
(b) the emoluments of employees who are in receipt of emoluments from more than one
source at the same time; or
(c) the emoluments of employees in any case where, in the opinion of the Commissioner,
the tax to be deducted by reference to the tax tables is insufficient to cover the
liability to tax on those emoluments; or
(d) the emoluments of employees in any other class of case which in the opinion of the
Commissioner is a class of case of such a nature that deduction of tax by reference to
the tax tables would be impracticable or would constitute undue hardship.
(2) Notwithstanding Regulation 59 the Commissioner may direct an employer to deduct from the
emoluments for each pay period of any employee of his who is indebted to the Crown under the Act
such amount (expressed either as a dollar amount or a percentage of those emoluments) as may be
specified in the directions until the employee's indebtedness to the Crown under the Act is satisfied.
(3) Without prejudice to the foregoing provisions of this regulation any directions given pursuant
to the provisions of this regulation may, in particular, include directions as to the manner in which the
tax or other amounts, if any, shall be deducted, the period over which such deduction shall be made
and such other matters as the Commissioner may think fit and any employer to whom any such
directions may be so given shall comply with the directions so given.
Death of employee
62. If any emoluments are paid by an employer at any time after the date of death of an employee
the employer by whom the emoluments are paid shall subject to the provisions of Regulation 63 on
making any such payments, deduct in accordance with the provisions of this part the tax on those
emoluments as if the deceased employee was still alive at the date of the payment.
Exempt emoluments
63. Tax shall not be deducted by any employer from:
(a) The emoluments of any employee who performs the duties of his employment wholly
outside Barbados;
(b) emoluments paid outside Barbados to an employee outside Barbados;
(c) a retirement plan benefit or retiring allowance arising out of an employment which
was wholly carried on outside Barbados; or
(d) the emoluments of any person to whom a notice pursuant to subparagraph (c) of
paragraph 2 of Regulation 57 applies;
unless the Commissioner, in any particular case, directs the employer to deduct tax in
accordance with this part.
Limit
64. The amount of tax to be deducted pursuant to any direction given by the Commissioner in any
particular case shall not, except in the cases mentioned in subparagraphs (b) and (c) of paragraph (1)G/SCM/Q3/BRB/9
Page 206
of Regulation 61, exceed the amount of tax which is deductible or would be deductible by reference to
the tax tables.
Determination by Commissioner
65. If any question arises as to:
(a) The amount of tax so deducted on payment of any emoluments;
(b) whether or not any emoluments are of any class of case specified in Regulation 61 or
in a notice pursuant to subparagraph (c) of paragraph 2 of Regulation 57;
(c) whether or not any payment of emoluments is a payment of a bonus or a retroactive
payment;
(d) whether any amount is an emolument in respect of which tax should be deducted; or
(e) whether any allowance claimed in a declaration is properly claimed;
such question shall be determined by the Commissioner, subject to appeal in accordance with
the provisions of the Act relating to appeals.
Payment of Tax Deducted
Payment of tax deducted
66.(1) Within the first 15 days of every month, every employer shall pay the Commissioner the total
amount of tax deducted by him in accordance with the provisions of this part during the immediately
preceding month.
(2) Notwithstanding paragraph (1), where an employer ceases to carry on business all amounts of
tax deducted by him pursuant to this part and not paid to the Commissioner shall be paid by him to the
Commissioner within seven days of the day on which the last payment of emoluments was made.
(3) The Commissioner shall provide every employer making a payment under this regulation
with a receipt.
Accounting for Tax Deducted
Returns. 1984/59
67. Every payment of tax made pursuant to Regulation 66 shall be accompanied by a return made
out on the appropriate form by or on behalf of the employer.
Prior years retroactivity returns. 1984/59
68. Where the payment of a bonus or of any sum to meet any retroactive increases of emoluments
granted to an employee is made at any time in any year and the whole or any part of such payment
relates to any pay periods of any calendar year preceding the year in which such payment is made, the
employer shall within seven days of such payment being made deliver or send by post to the
Commissioner a separate account of such payments made out on the appropriate form and showing
the total of such emoluments paid and the total amount of tax deducted therefrom.G/SCM/Q3/BRB/9
Page 207
Certificates. 1984/59
69.(1) On or before 28 February in each year next following a year in which tax was deducted from
the emoluments of an employee the employer by whom the tax was deducted shall, unless he has
previously delivered or sent to the employee a certificate provided for by Regulation 70, 71 or 72,
deliver personally or send by post to the employee a certificate and one copy thereof made out on the
appropriate form and containing the following particulars, namely:
(a) The name and address of the employee;
(b) any number used to identify the employee;
(c) the total amount of all emoluments paid by him to the employee during the year
immediately preceding that in which the certificate is by this regulation required to be
sent or delivered;
(d) the total amount deducted by him for or in respect of any amount contributed by the
employee to any registered retirement plan on the making of any payment of those
emoluments to the employee;
(e) the total amount of tax deducted in accordance with this part from those emoluments;
(f) the appropriate code number of the tax tables, if any, used in making the deductions
of tax; and
(g) the date when the employment commenced if subsequent to the first day of January in
the year to which the certificate relates.
1984/59
(2) The employer required by this regulation to deliver or send a certificate to the employee shall
make on the appropriate form one copy of the said certificate which he shall deliver personally or
send by post to the Commissioner on or before the said 28thday of February.
Cessation of employment. 1984/59. 1987/4. 1984/59
70.(1) If the employer ceases to employ an employee from whose emoluments tax was deducted by
him in accordance with this part he shall not later than the day on which the last payment of
emoluments was made, deliver personally or send by post to the employee a certificate and one copy
thereof made out on the appropriate form and containing the following particulars, namely:
(a) The name and address of the employee;
(b) any number used to identify the employee;
(c) the date on which the employment ceased;
(d) the total amount of all emoluments paid by him to the employee from the first day of
January of the year in which the employment ceased up to and including the day on
which the last payment of emoluments was made to the employee;
(e) the total amount deducted by him for or in respect of any amount contributed by the
employee to any registered retirement plan on the making of any payment of those
emoluments;G/SCM/Q3/BRB/9
Page 208
(f) the total amount of tax deducted in accordance with this part from those emoluments;
and
(g) the appropriate code number of the tax table, if any, used in making the deductions of
tax.
1984/59
(2) The employer shall make on the appropriate form one copy of the said certificate which he
shall deliver personally or send by post to the Commissioner on the day on which the last payment of
emoluments was made.
(3) Revoked by S.I. 1987/4 .
Cessation of business. 1984/59
71.(1) If an employer ceases to carry on business he shall with respect to each employee from whose
emoluments any tax was deducted during the year in which the business ceased, personally deliver or
send by post not later than the last day on which a payment of emoluments was made to that employee
a certificate and one copy thereof made out on the appropriate form and containing the particulars
specified in Regulation 69 for or in respect of a period beginning with the first day of the year in
which the business ceased to be carried on and terminating on the day of cessation of that business.
(2) In the case of a business commenced to be carried on in the year in which it cases on a day
other than the first day of January in that year, the date of commencement of the period for or in
respect of which the particulars of the certificate shall relate shall be the date on which the business
commenced to be carried on in that year.
1984/59
(3) The employer shall make on the appropriate form one copy of the said certificate which he
shall deliver personally or send by post to the Commissioner within one month of the day of cessation
of the business.
Death of employee
72.(1) On the death of an employee the employer shall not later than the fifteenth day of the month
next following that in which the death occurred deliver personally or send by post to the legal
representative or next-of-kin of the deceased employee if known to him the certificate and one copy
thereof mentioned in Regulation 70.
(2) The employer shall at the same time deliver personally or send by post to the Commissioner
one copy of the said certificate made on the appropriate forms and shall insert thereon the name of the
legal representative of the deceased employee, if known to him.
Particulars to be furnished to employees
73.(1) Every employer on making any payment of emoluments to any employee from whom tax is
deducted pursuant to this part, shall furnish to the employee particulars of the payment including
particulars of the gross emoluments for the pay period and of the amount of tax deducted therefrom,
in such form as may be approved by the Commissioner.G/SCM/Q3/BRB/9
Page 209
(2) The Commissioner may in his discretion exempt from the provisions of paragraph (1) all or
any employers in respect of such classes of employees as he shall think fit, and any such exemption
may at any time be revoked by the Commissioner.
Records
74. Every employer on making any payment of emoluments to an employee from whose
emoluments tax is deducted pursuant to this part, shall keep to the satisfaction of the Commissioner a
record of the emoluments paid to each such employee and the tax deducted therefrom on each
payment thereof.
Miscellaneous
Death of employer
75. If an employer dies, anything which he would have been liable to do under this part shall be
done by his legal representative, or, in the case of an employer who paid emoluments on behalf of
another person, by the person succeeding him or, if no person succeeds him, the person on whose
behalf he paid the emoluments.
Changes in employer carrying on business
76.(1) This regulation applies where there has been a change in the employer from whom an
employee receives emoluments in respect of his employment in any business, or in connection with
any property, or from whom an employee receives any annuity or pension or allowance in respect of
past service.
(2) Where this regulation applies the change shall not be treated as a cessation of employment for
the purposes of Regulation 70, but in relation to any matter arising after the change, the employer
after the change shall be liable to do anything which the employer before the change would have been
liable to do under this part if the change had not taken place.
(3) Notwithstanding paragraph (2) the employer after the change shall not be liable for the
payment of any tax which was deductible from emoluments paid to the employee before the change
took place.
Declarations
77.(1) The declaration which a person may file pursuant to Regulation 57 may include particulars of
all or any of his total allowances as the employee by whom the declaration is filed may think fit.
(2) A person entitled and wishing to file a declaration under Regulation 57 shall do so at the
following times:
(a) On the day on which his employment commences;
(b) within seven days of the day on which a change occurs in the total allowances to
which he is entitled; or
(c) within such time or times as may be specified by notice published by the
Commissioner in the Official Gazette and at least one newspaper of Barbados, or in
such other manner as the Commissioner shall think fit.G/SCM/Q3/BRB/9
Page 210
(3) The Commissioner may in his discretion permit any person to file a declaration at any time
other than the times specified in paragraph (2), if the person is otherwise entitled to file a declaration.
Tax tables
78.(1) The tax tables shall be constructed with a view to securing that so far as practicable the tax to
be deducted pursuant to this part from the emoluments of any employee may be readily ascertained
and with a view to securing that so far as practicable the total tax payable in respect of any
emoluments is deducted from the emoluments paid during the year.
(2) Separate tables shall be prepared for daily, weekly, monthly and annual pay periods, and such
tables shall make provision for such ranges of total allowances and for such amounts of emoluments
as the Commissioner shall think fit.
(3) In addition to the tables required by paragraph (2) of this regulation, tables shall be prepared
relating to such of the pay periods referred to in that paragraph as the Commissioner shall think fit and
providing for such amounts of emoluments as the Commissioner shall think fit, but without taking
into account any total allowances.
(4) For the purposes of this regulation, references to the total tax payable shall in relation to the
tables referred to in paragraph (2) of this regulation be construed as references to the total tax
estimated to be payable having regard only to the allowances provided for by this part and without
aggregating emoluments from two or more sources or other income and in relation to the tables
referred to in paragraph (3) of this regulation shall be construed as references to the total tax estimated
to be payable without having regard to any allowances whatever and without aggregating emoluments
from two or more sources or other income.
(5) The tax tables shall be prepared or constructed by the Commissioner and shall be made
available to any person required to deduct or withhold tax under section 64 of the Act or this Part.
Inspection of records
79. Every employer, when called upon to do so by the Commissioner or any person authorized in
writing by him shall produce to the Commissioner or such authorized person for inspection, at the
employer's premises, all wages sheets and other documents and records whatsoever relating to the
calculation or payment of the emoluments of his employees or the deduction of tax therefrom or the
accounting of any tax deducted therefrom.
Complaints
80. If any employee considers that any tax deducted by his employer is less than or in excess of
the amount of tax that ought properly to be deducted in accordance with this part from his
emoluments, he may in writing give notice of complaint, stating the grounds of his complaint, to the
Commissioner.
Idem
81. In the event of the Commissioner being satisfied on the complaint of any employee made
under Regulation 80 that any tax in excess of the amount that ought properly to have been deducted in
accordance with this part from the emoluments of the employee was deducted by the employer, he
shall as soon as practicable cause the excess to be refunded to the employee.G/SCM/Q3/BRB/9
Page 211
Publication
82. Any notice published by the Commissioner pursuant to subparagraph (c) of paragraph (2) of
Regulation 57 shall be published in the Official Gazette and at least one newspaper in Barbados or in
such other manner as the Commissioner may think fit.
Proceedings to recover unpaid amounts
83.(1) Proceedings may be brought for the recovery of the total amount of tax which an employer is
liable to pay to the Commissioner within the times specified in Regulation 66 without distinguishing
the amounts which the employer is liable to pay in respect of each employee and without specifying
the employees in question, and for the purposes of such proceedings, the said total amount shall be the
subject of one action; but nothing in this regulation shall prevent the bringing of separate actions for
the recovery of each of the several amounts which the employer is liable to pay within the first
15 days of every month in respect of his several employees.
(2) A certificate of the Commissioner that any amount of tax as is mentioned in paragraph (1) of
this regulation has not been paid to him, or to the best of his knowledge and belief, to any person
acting on his behalf, shall be sufficient evidence that the sum mentioned in the certificate is due and
unpaid; and any document purporting to be such a certificate as aforesaid shall be deemed to be such
a certificate until the contrary is proved.
Offences
84. If any person who is prohibited by paragraph (2) of Regulation 57 from filing a declaration
shall without the permission of the Commissioner file a declaration with his or her employer, or if any
employee in the employment of more than one employer shall contrary to the provisions of
paragraph(3) of Regulation 57 file a declaration with more than one of his employers, he shall be
guilty of an offence and liable on conviction by a court of summary jurisdiction to a fine not
exceeding $100.
Idem
85. If on a change occurring in the total allowances of any person by whom a declaration has
been filed which results in the total allowances of that person being less than the total allowances
claimed by him in his declaration such person shall wilfully fail or neglect to file a further declaration
within the time specified in subparagraph (b) of paragraph (2) of Regulation 77 he shall be guilty of
an offence and liable on conviction by a court of summary jurisdiction to a fine not exceeding $100 or
to imprisonment for a term not exceeding one month or to both such fine and imprisonment.
Idem
86. If any person shall hinder, prevent or obstruct the Commissioner or any person authorized in
writing by him from inspecting any wages sheets or other documents or records mentioned in
Regulation 79 after being called upon to produce the same, he shall be guilty of an offence and liable
on conviction by a court of summary jurisdiction to a fine not exceeding $100 or to imprisonment for
a term not exceeding one month or to both such fine and imprisonment.
Idem
87. If any person shall wilfully fail to prepare and deliver or send any account, certificate or other
document that he is required by this part to prepare and deliver or send he shall be guilty of an offence
and liable on conviction by a court of summary jurisdiction to a fine not exceeding $10 for every day
throughout which the failure continued.G/SCM/Q3/BRB/9
Page 212
Certain actions barred and agreements void. 1972/31
88.(1) No action lies against any person for withholding or deducting any sum of money in
compliance or intended compliance with section 64 or 64A or this part, on behalf of any person from
whom the money was deducted or withheld.
(2) Where by section 64 or this part an obligation is imposed on any person to deduct or withhold
an amount, any agreement made by such person not to withhold or deduct such amount is void and of
no force or effect.
Special tables for self-assessment by individuals under section 52(5)
89.(1) Where pursuant to section 84(2) the Commissioner prescribes tables for the estimation under
section 52(5) of the tax payable for an income year by a person to whom this regulation applies, then,
notwithstanding section 42 the amount of tax payable by any such person for an income year shall be
the amount of tax assessed by the Commissioner as payable in accordance with those tables.
1972/31. 1987/4
(2) The person to whom this regulation applies are individuals whose taxable income does not
exceed $24,000 in any income year.
89A. Revoked by S.I. 1987/4 .
PART XI
Tax Deductions on Payments to Non-Residents
Interest. 1985/134
90.(1) Every person who pays an amount as interest to a non-resident person shall withhold from the
amount that would otherwise be paid 15 per cent of that amount and shall pay the amount withheld as
tax of the non-resident person.
(2) Notwithstanding paragraph (1), no amount shall be withheld as tax from any amount payable
to a non-resident person as interest on bonds, debentures or stock of the Government beneficially
owned by that non-resident person.
Rents
90A.(1)Subject to this regulation every person who pays an amount as rents to a non-resident person
shall withhold from the amount that would otherwise be paid 40 per cent of that amount and shall pay
the amount so withheld to the Commissioner as prepayment of the tax of that non-resident person.
(2) This regulation does not apply where the Commissioner has issued a certificate that has not
been withdrawn by the Commissioner, to the effect that this regulation does not apply in respect of
certain payments to a non-resident person because either:
(a) That non-resident person has habitually filed returns of income in respect of similar
payments in prior income years; or
(b) that non-resident person is exempt from income tax on such payments under an
enactment in force in Barbados.G/SCM/Q3/BRB/9
Page 213
Royalties
90B. Every person who pays an amount as royalties to a non-resident person shall withhold from
the amount that would otherwise be paid 15 per cent of that amount and shall pay the amount so
withheld as tax of that non-resident person.
Payments under settlements. 1993/63
91. Every person who pays an amount that he may deduct under sections 24C and 24D in
calculating his assessable income to a non-resident person shall deduct or withhold from the amount
that would otherwise be paid 20 per cent of that amount and shall pay the amount so deducted or
withheld to the Commissioner as a prepayment of tax of that non-resident person.
92. Revoked by 1993/63 .
Dividends from untaxed profits. 1978/52. 1993/63
93.(1) Every company which pays an amount as a dividend out of profits that are exempt from tax or
have not been taxed to a non-resident person shall deduct or withhold from the amount that would
otherwise be paid 40 per cent of that amount and shall pay the amount so deducted or withheld to the
Commissioner as a prepayment of tax of that non-resident person.
Cap. 83. Cap. 74. Cap. 75. Cap. 76
(2) This regulation does not apply where the Commissioner has issued a certificate that has not
been withdrawn by the Commissioner, to the effect that the non-resident person is exempt from tax in
respect of the dividend under the Pioneer Industries Act , or the Industrial Development (Export
Industries) Act , or the Industrial Incentives Act , or the Industrial Incentives (Factory Constructions)
Act.
Payment of amounts on account or in satisfaction of management fees etc. 1970/154. 1975/106.
1984/59. 1985/136
93A.(1)Every person who pays an amount to a non-resident person on account or in satisfaction of
liability for fees or charges arising under a contract for the provision of management or administrative
services or of technical or managerial skills, whether such contract be oral or in writing and whether
or not made in Barbados, shall or withhold from the amount that would otherwise be paid 15 per cent
of that amount and shall pay the amount so deducted or withheld to the Commissioner as payment of
tax of that non-resident person.
1984/59
(2) For the purposes of this regulation tax shall be deducted or withheld whether or not the fees or
charges to which this regulation refers have been paid.
(3) Where the fees or charges to which this regulation refers are not paid at the end of the fiscal
period of the person liable to make the payment, the tax deducted or withheld shall be paid to the
Commissioner within 15 days after the end of the fiscal period of that person.
Rate of withholding tax. 1981/141
93B. The amount to be withheld from payments for service other than for the provision of
management, administrative, technical or managerial skills under section 64D(1) and 64E(1) is 25 per
cent of the gross earnings.G/SCM/Q3/BRB/9
Page 214
Payment of amounts deducted. 1993/63. 1984/59
94.(1) Any person who has withheld or deducted an amount under section 64, except
subsection (1)(c), or under section 65(2) or (4) and Regulations 90, 90A, 90B, 91, 93, 93A and 97
shall pay the amount to the Commissioner within 15 days after the end of the month in which the
amount is withheld or deducted.
1978/52
(2) Any tax deducted or withheld under section 65(5) shall be paid to the Commissioner in
respect of every income year subsequent to the income year 1976, not later than 30 June of the year
following that income year.
(3) The Commissioner shall provide every person making a payment under this regulation with a
receipt.
Returns. 1970/154. 1975/106. 1981/141. 1984/59. 1985/136. 1993/63
95.(1) Every person who has withheld or deducted an amount under section 64, except paragraph (c)
of subsection (1), or under section 65(2) or (4) and Regulations 90, 90A, 90B, 91, 93, 93A or 93B
shall file a return with the Commissioner at the time that payment is made to the Commissioner under
Regulation 94 showing the amount paid to the Commissioner, the amount payable or paid, as the case
may be, to the non-resident in respect of whom the withholding or deduction was made and the name
and address of that non-resident; and shall at the same time send a copy of the return to that non-
resident.
(2) Every person who has deducted an amount to which section 64(1)(c) refers, shall on making
the payment to which the deduction relates, deliver to the employee and to the Commissioner a
certificate in the appropriate form.
PART XII
Withholding Tax on Dividends
Withholding tax on dividends. Cap. 78. 1984/59. 1985/136. 1987/4. 1988/66. 1993/63
96. Every person who pays an amount as dividends as specified under sections 48C or 65(4A) of
the Act to a resident individual shall pay the amount deducted or withheld under those sections to the
Commissioner within 15 days after the end of the month in which the amount is withheld or deducted.G/SCM/Q3/BRB/9
Page 215
CHAPTER 323C
CENTRAL BANK OF BARBADOS
ARRANGEMENT OF SECTIONS
PART I
Preliminary
Section
1. Short title.
2. Interpretation.
PART II
Constitution
3. Establishment of Bank.
4. Status and powers.
5. Purposes.
6. Offices, branches, agents and correspondents.
PART III
Capital, Profit and Reserves
7. Capital.
8. Profits.
9. General reserve.
PART IV
Administration
10. Board of Directors and General Manager.
11. Governor.
12. Other Directors.
13. Disqualification and resignation.
14. Appointment to fill a vacancy.
15. Meetings of the Board.
16. Power to appoint officers, agents and correspondents.
17. Conflicts of interest.
18. Secrecy.G/SCM/Q3/BRB/9
Page 216
PART V
Currency
19. Currency.
20. Parity of Barbados dollar.
21. Sole right to issue currency notes and coins and power to recall them.
22. Denomination and other aspects of currency.
23. Issuance, reissuance and exchange.
24. Refunds.
25. Mutilation and defacing currency notes.
PART VI
Reserve of External Assets
26. Reserve of External Assets.
PART VII
Foreign Exchange Operations
27. Operations in gold and foreign exchange.
28. Limitations on operations of foreign exchange.
29. Determination of buying and selling rates of gold and foreign exchange.
30. Revaluation reserve account.
PART VIII
Relations with Banks and other Financial Institutions
31. Opening accounts for banks and other financial institutions.
32. Operations with account holders.
33. Determination of bank rates.
34. Inspection of banks and other financial institutions.
35. Required reserves of banks.
36. Regulation of interest and credit.
37. Local assets ratio.
38. Foreign working balances.
39. Clearing house.
40. Insurance and guarantee schemes.
41. Special Credit Trust.
PART IX
Relations with the Government
42. Bank to be banker, fiscal agent and depositary to the Government.G/SCM/Q3/BRB/9
Page 217
43. Depositary and fiscal agency of international financial institutions.
44. Credit to the Government, its institutions, agencies and statutory boards.
45. Advances to the Government.
46. Acquisition of evidence and indebtedness issued by the Government.
47. Consultation on budget and credit operations.
48. Reports and recommendations on bank credit to the Government.
49. Orders.
PART X
Accounts
50. Financial year.
51. Audit.
52. Accounts and operations.
PART XI
Miscellaneous
53. Reports and announcements.
54. Advances to officers and employees.
55. Restricted titles.
56. Exemption.
57. Liquidation of Bank.
58. Initial expenses.
59. Residence.G/SCM/Q3/BRB/9
Page 218
CHAPTER 323C
CENTRAL BANK OF BARBADOS
An Act to Provide for the Establishment of a Central Bank of Barbados
and for Related Matters
1972-6.
1975-13.
1977-32.
1981-22.
1981-32.
1982-22.
1984-19.
1989-22.
1992-17.
[2 May 1972] Commencement. 1972-77.
PART I
Preliminary
Short title
1. This Act may be cited as the Central Bank of Barbados Act .
Interpretation
2. For the purposes of this Act:
"Appointed day" means the day appointed by the Minister under section 19(1);
"Bank" means the Central Bank of Barbados established by section 3;
Cap. 322. "bank" means a bank licensed to carry on banking business in Barbados under the Banking
Act;
"Board" means the Board of Directors of the Bank constituted and appointed under Part IV;
1989-22. "Deputy Governor" means a Deputy Governor of the Bank;
"Director" means a member of the Board;
1977-32. "financial institution" means any person carrying on business who is so designated by the
bank for the purposes of this Act;
"Governor" means the Governor of the Bank;
"Minister" means the Minister responsible for Finance.G/SCM/Q3/BRB/9
Page 219
PART II
Constitution
Establishment of Bank
3. There is hereby established a bank which shall be known as the Central Bank of Barbados to
carry on business in accordance with this Act.
Status and powers. Cap. 1
4. The Bank shall be a body corporate and, subject to the limitations contained in this Act,
section 21 of the Interpretation Act applies to the Bank.
Purposes
5. The purposes of the Bank shall be:
(a) To regulate the issue, supply, availability and international exchange of money;
(b) to promote monetary stability;
(c) to promote a sound financial structure;
(d) to foster the development of money and capital markets in Barbados; and
(e) to foster credit and exchange conditions conducive to the orderly and sustained
economic development of Barbados.
Offices, branches, agents and correspondents
6. The Bank shall have its head office in the City of Bridgetown in Barbados and may establish
branches within Barbados, appoint agents and correspondents within Barbados and abroad, and with
the approval of the Minister establish offices abroad.
PART III
Capital, Profit and Reserves
Capital. 1977-32
7.(1) The authorized capital of the Bank shall be $5,000,000 and may be increased by such
amounts as may be proposed by the Board and approved by the Minister.
(2) There shall be paid up by the Government in respect of the authorized capital of the Bank
upon the establishment of the Bank an amount of $2,000,000 and such further amounts thereafter as
may be proposed by the Board and approved by the Minister.
(3) All capital of the Bank, as and when subscribed, shall be for the sole account of the
Government and shall not be transferable or subject to encumbrance, and no reduction of capital shall
be effected except by an amendment of this Act.
(4) The Minister, notwithstanding any other provision of this Act, shall cause to be transferred to
the ownership of the Bank non-negotiable, non-interest-bearing securities issued by the Government
for such an amount as is necessary for the purpose of preserving the paid-up capital from anyG/SCM/Q3/BRB/9
Page 220
impairment whenever, in the judgement of the Board, the assets of the Bank are less than the sum of
its liabilities and paid-up capital.
Profits
8. The net profits of the Bank for each financial year shall be determined after meeting all
current expenditures for that year and after providing:
(a) For bad and doubtful debts, depreciation in assets, and contributions to staff and
pension funds and such other contingencies and accounting provisions as are usually
made by banks;
(b) with the approval of the Minister, for such other purposes as the Board considers
necessary.
General Reserve
9.(1) The Bank shall establish a General Reserve to which shall be allocated at the end of each
financial year of the Bank:
(a) Fifty per cent of the net profits of the Bank whenever the General Reserve does not
exceed the authorized capital of the Bank;
(b) twenty-five per cent of the net profits of the Bank whenever the General Reserve
exceeds the authorized capital of the Bank until the General Reserve is equal to twice
the authorized capital of the Bank:
Provided that the General Reserve may be increased beyond such amount as such rate
and to such extent as may be agreed between the Minister and the Bank.
(2) After appropriate allocations have been made to the General Reserve under subsection (1):
1977-32. (a) Fifty per cent of the remainder of the net profits for the financial year shall be applied
to the redemption on behalf of the Government of any securities held by the Bank
which have been issued in accordance with section 7(4) or section (30)2; and
(b) out of the remaining balance of net profits for the year, suitable amounts to be
determined by the Bank in consultation with the Minister may be transferred to
special funds established under section 40 and the Special Credit Trust established
under section 41.
(3) The balance of the net profits for the financial year remaining after all deductions under
subsections (1) and (2) have been made shall be paid into the Consolidated Fund as soon as
practicable after the end of each financial year.
(4) No deductions under subsection (1) or (2)(a) shall be required to be made, nor shall any
payment under subsection (3) be made if, in the judgement of the Board, the assets of the Bank are, or
after the deductions or payment, would be, less than the sum of its liabilities and paid-up capital.G/SCM/Q3/BRB/9
Page 221
PART IV
Administration
Board of Directors and General Manager
10.(1) There shall be a Board of Directors of the Bank, which shall be responsible for the policy and
general administration of the Bank.
(2) The Board shall consist of a Governor and five other Directors.
(3) There shall be two Deputy-Governors of the Bank who shall perform the functions conferred
on them by this Act and, under the supervision of the Governor, such other functions as may be
conferred on them by the Board.
(4) The Board may make by-laws regulating the conduct of the Bank's business and may make
regulations and issue orders for the purpose of giving effect to the provisions of this Act.
(5) Before making any regulations under subsection (4) the Board may ascertain the views of
interested parties by affording them an opportunity to comment thereon.
1977-32
(6) Any by-laws, regulations or orders made or issued under subsection (4) shall be authenticated
in such manner as the Board determines.
Cap. 1
(7) Notwithstanding section 16(1) of the Interpretation Act , it shall not be necessary for by-laws
made under subsection (4) to be published in the Official Gazette , and such by-laws, unless they
otherwise provide, shall come into operation on the date on which they are made.
Governor. 1989-22
11.(1) The Governor shall be a person of recognized experience in financial matters and shall be
appointed by the Minister by instrument in writing for a period not exceeding five years and shall be
eligible for reappointment; he shall be appointed on such terms and conditions as may be set out in
his instrument of appointment, and such terms and conditions may not be altered to his disadvantage
during his tenure of office.
1989-22
(2) The Governor, or in case of his absence or disability, a Deputy Governor, shall:
(a) Preside as chairman at the meetings of the Board;
(b) serve as chief executive officer of the Bank responsible to the Board for the execution
of its policy and the management of the Bank;
(c) except as may otherwise by provided in this Act, the by-laws of the Bank or the
resolutions of the Board, have the power to act, contract, and sign instruments and
documents on behalf of the Bank and, pursuant to the resolutions of the Board,
delegate such power to other officers of the Bank.G/SCM/Q3/BRB/9
Page 222
1989-22
(3) The Deputy Governors may attend all meetings of the Board but, shall not have the right to
vote at those meetings.
(3A) Notwithstanding subsection (3) where a Deputy Governor presides as chairman under
subsection (2)(a) he shall have the right to vote.
1989-22
(4) The Governor and the Deputy Governors shall devote the whole of their professional services
to the Bank and while holding office shall not without the approval of the Minister:
(a) Receive any salary or supplementation thereto from any source other than the Bank;
(b) occupy any other office or employment, whether remunerated or not.
1989-22
(5) Notwithstanding subsection (4), the Governor may:
1989-22. (a) Act as a member of any board, committee or commission established by the
Government;
1989-22. (b) become a governor, director, or member of the Board by whatever name called, of
any international bank or international financial institution of which Barbados is a
member;
1989-22. (c) become a director of any corporation in Barbados in which the Bank is a participant
in accordance with section 40.
Other Directors
12.(1) The five other Directors of the Bank, who shall be persons of recognized standing and
experience in business, professional or academic matters, shall be appointed by the Minister by
instrument in writing.
(2) Such Directors shall hold office for three years and be eligible for reappointment; but of the
first five Directors to be appointed under this section, one shall be appointed for one year, two shall be
appointed for two years and two shall be appointed for three years.
(3) Such directors shall be entitled to fees and allowances as may be prescribed by the Board and
approved by the Minister.
Disqualification and resignation. 1989-22
13.(1) No person shall be appointed, or, as the case may be, remain, a Director of a Deputy
Governor if:
(a) He is a director, officer or employee of or the owner of or a shareholder in any bank
under the regulatory jurisdiction of the Bank;
1992-17. (b) he has been convicted by a court of an arrestable offence or other offence involving
dishonesty;G/SCM/Q3/BRB/9
Page 223
(c) he has been adjudged or otherwise declared bankrupt under any law in force in
Barbados;
1989-22. (d) he is a person certified to be insane or otherwise adjudged to be of unsound mind
under any law in force in Barbados; or
(e) the appointing authority, on the recommendation of the Board, finds:
(i) That he is incompetent or otherwise incapable of carrying out his duties; or
1989-22. (ii) that he is guilty of serious misconduct in relation to his duties.
(1A) No person shall remain a Director if he has been absent without leave of the Board from three
or more consecutive regular meetings of the Board.
1989-22
(2) Subject to subsection (3), a Director may resign his office on giving to the Minister in writing:
1989-22. (a) In the case of the Governor, not less than three months' notice; or
(b) in the case of any other Director, not less than one month's notice.
(3) The Minister may waive the period of notice required by subsection (2).
Appointment to fill a vacancy. 1989-22
14.(1) If a Director dies, resigns or otherwise vacates his office before the expiry of the term for
which he has been appointed, another person shall be appointed in his place in the manner provided
by section 12(1), for the unexpired period.
1989-22
(2) The Minister, on the finding of the Board of the temporary absence or incapacity of a Director
may appoint in the manner provided by section 12(1), a substitute to serve until the expiry of the term
or a determination by the Board that such state has ceased, whichever is the earlier.
Meetings of the Board
15.(1) The Board shall meet as often as the business of the Bank requires but not less frequently than
ten times in each year; but there shall not be an interval greater than two months between one
meeting of the Board and the next meeting.
(2) Pursuant to the by-laws, the Board may provide for regular meetings for which no notice shall
be necessary and special meetings, to be convened at the written request of the Governor or any two
Directors, for which notice shall be required.
(3) Four Directors of whom one shall be the Governor, or in case of his absence or disability, a
Deputy Governor, shall form a quorum at any meeting, and decisions shall be adopted by a simple
majority of the votes of the members present, except that in the event of an equality of votes the
chairman shall have and exercise a second or casting vote.G/SCM/Q3/BRB/9
Page 224
1989-22
(4) All acts done by a person acting in good faith as a Director shall be as valid as if he were a
Director, notwithstanding that some defect in his appointment or qualification to be afterwards
discovered.
Power to appoint officers, agents and correspondents. 1977-32. 1989-22
16.(1) The Board may appoint and employ, at such remuneration and on such terms and conditions
as it may prescribe, such officers and employees, agents and correspondents as the Board considers
necessary for the efficient functioning of the Bank.
(1A) Subject to subsection (1) the deputy Governors shall be appointed by the Board with the
approval of the Minister on such terms and conditions as the Board with the approval of the Minister
may prescribe.
(2) No salary, fee, wage, allowance or other remuneration paid by the Bank shall be computed by
reference to the net or other profits of the Bank.
Cap. 25
(3) Where a public officer is seconded or temporarily transferred for duty to an office in the Bank
from a pensionable office within the meaning of section 2(1) of the Pensions Act, the period during
which he serves in the Bank shall, unless the Governor-General otherwise decides, count for pension
under that Act as if the officer had not been so seconded or temporarily transferred.
(4) Where:
(a) A public officer is transferred to any office in the service of the Bank; or
(b) an officer of the Bank is transferred to an office in the public service;
Vol. 1. S.I. Cap. 25
the Pensions Act shall apply to him as if his service with the Bank were other public service
within the meaning of that Act, and the Pensions Regulations, 1947 shall apply to him accordingly as
if the Bank were a Scheduled Government within the meaning of Regulation 8(1) of those regulations.
Conflicts of interest. 1989-22
17.(1) No Director shall act as a delegate of any commercial, financial, agricultural, industrial or
other interests, or receive or accept directions therefrom in respect of duties to be performed under
this Act.
1989-22
(2) All Directors shall fully disclose to the Board any commercial, financial, agricultural,
industrial or other interests with which they may at any time directly or indirectly be connected, and
shall refrain from voting on any matter related thereto which becomes the subject of Board action;
but such an interest, if so disclosed, shall not disqualify the interested party for the purpose of
constituting a quorum.
(3) No Director nor any officer or employee of the Bank shall accept any gift or advantage for
himself, or, in his behalf, for persons with whom he may have family, business, or financialG/SCM/Q3/BRB/9
Page 225
connections if the acceptance thereof would result, or give the appearance of resulting, in a diminution
of his impartial devotion to his duties under this Act.
Secrecy
18.(1) Except for the purpose of the performance of his duties or the exercise of his functions or
when lawfully required to do so by any court or under the provisions of any law, no Director, officer
or employee of the Bank shall disclose to any person any material information relating to the affairs of
the Bank or of any other bank or financial institution or other person, firm, company or organization
which he has acquired in the performance of his duties or the exercise of his functions.
(2) For the purposes of this section "employee" includes any person who is engaged in
employment with the Bank under a contract of service.
1977-32
(3) Any person who contravenes subsection (1) is guilty of an offence and liable on summary
conviction to a fine of $500 or to imprisonment for six months or to both.
PART V
Currency
Currency
19.(1) From and after such date as the Minister may appoint1by order for the purpose, the unit of
currency of Barbados shall be the Barbados dollar divided into 100 cents.
(2) Notwithstanding any enactment to the contrary, an order under subsection (1) shall be
published in the Official Gazette and in one newspaper circulating in Barbados.
1981-32
(3) With effect from the appointed day the East Caribbean dollar shall cease to be the unit of
currency of Barbados, and any reference in:
(a) Any enactment; and
(b) a contract, document, sale, payment, bill, note, instrument or security for money, and
every transaction, dealing, proceeding, matter and thing whatsoever related to money
or involving the payment of money or the liability to pay money, in the absence of an
express agreement not invalid or unlawful by virtue of any enactment involving the
payment of money or the liability to pay money which is the currency of or legal
tender in a country other than Barbados;
shall be deemed to be expressed in terms of the Barbados dollar at the conversion rate
declared by the Bank for this purpose by notice published in the Official Gazette .
Parity of Barbados dollar
20.(1) The par value of the Barbados dollar shall be 0.444335 grams of fine gold and any change
thereof shall be determined by the Minister after considering the recommendation of the Bank.
1The appointed day was 3 December 1973 (see S.I. 1973 No. 175).G/SCM/Q3/BRB/9
Page 226
(2) In the determination of any change of the par value, the Minister shall have due regard for the
obligations which Barbados has assumed in accordance with the provisions of any international
monetary agreements to which it is a party or to which it has adhered.
(3) Notice of any change of the par value shall be published in the Official Gazette .
21.(1) With effect from the appointed day the Bank shall have the sole right of issuing currency
notes and coins in Barbados, whether on its own account or as agent of an international financial
authority, which are legal tender in Barbados.
(2) Neither the Government nor any other person shall issue currency notes, bank notes, or coins
or any documents or tokens payable to bearer on demand being documents or tokens having the
appearance of or purporting to be currency notes or coins.
1981-32
(3) Currency notes issued by the Bank shall be legal tender in Barbados at their face value for the
payment of any amount.
(4) Coins issued by the Bank on its own account:
(a) In denominations of $10 or more, shall be legal tender in Barbados at their face value
for the payment of any amount;
(b) in denominations of less than $10, shall be legal tender in Barbados at their face value
for the payment of any amount not exceeding $10.
(5) The Bank may, on giving not less than three months' notice in the Official Gazette and,
notwithstanding any enactment to the contrary, in at least one newspaper in general circulation in
Barbados, call in any currency notes and coins which it has issued, on payment of their face value,
and any such notes or coins shall, on the expiration of such notice, cease to be legal tender; but the
holders of such notes and coins shall be entitled thereafter to claim payment from the Bank in
accordance with such regulations as it may issue.
Denomination and other aspects of currency
22.(1) Currency notes and coins issued by the Bank shall be in such denominations and in such
forms and designs as shall be determined by the Bank with the approval of the Minister.
(2) The printing of such currency notes and the minting of such coins shall be the duty of the
Bank which shall be responsible for the security and safe-keeping of unissued stocks of currency and
for the custody and destruction, as necessary, of plates, dies and retired currency.
(3) The standard weight and composition of coins issued by the Bank, and the amount of remedy
and variation, shall be determined by the Bank with the approval of the Minister.
Issuance, reissuance and exchange
23. The Bank shall issue, reissue, and exchange on demand and without charge currency notes
and coins which it has issued: but in the event of the temporary unavailability of a requested
denomination, the Bank may discharge this obligation by delivering currency notes and coins of
available denominations which most nearly approximate to those requested.G/SCM/Q3/BRB/9
Page 227
Refunds
24.(1) No person shall be entitled to recover from the Bank as of right the value of any lost,
damaged or mutilated currency note or coin.
(2) The circumstances in which, and the conditions and limitations subject to which, the value of
lost, damaged or mutilated currency notes or coins may be refunded as of grace shall be determined
by the Bank.
Mutilation and defacing currency notes
25.(1) Any person who without lawful authority or excuse (the proof whereof shall lie upon the
person accused) mutilates, cuts, tears or perforates with holes any currency note which is legal tender
in Barbados or in any way defaces any such note, whether by writing, printing, drawing or stamping
thereon, or by attaching of affixing thereto anything in the nature or form of any advertisement, is
guilty of an offence and liable on summary conviction to a fine of $500.
(2) The Bank shall assist in the enforcement of any law relating to the forgery or counterfeiting of
currency which is legal tender in Barbados and the certificate of a duly authorized officer of the Bank
that an item in question is or is not genuine shall be prima facie evidence of the fact certified in any
legal proceedings in Barbados.
PART VI
Reserve of External Assets
Reserve of External Assets
26.(1) The Bank shall maintain a Reserve of External Assets consisting of all or any of the following
on such terms and conditions as the Board prescribes:
(a) Gold;
(b) foreign exchange in the form of currency, cash or bank balances held abroad;
(c) any internationally recognized reserve asset, including:
(i) The ability of Barbados to make a gold tranche purchase in the General
Account of the International Monetary Fund;
(ii) the holding of any special drawing rights in the International Monetary Fund
by Barbados;
(d) bills of exchange and promissory notes denominated in foreign currency and payable
at any place outside Barbados;
(e) treasury bills issued by foreign governments specified from time to time by the
Board;
(f) securities issued or guaranteed by foreign governments or international financial
institutions specified from time to time by the Board.
(2) The Bank shall use its best endeavours to maintain the Reserve of External Assets at a level
adequate for the international transactions of Barbados.G/SCM/Q3/BRB/9
Page 228
(3) If the Reserve of External Assets has declined, or in the judgement of the Board appears to be
in danger of declining, so as to jeopardise the adequacy of such Reserve, the Bank shall submit to the
Minister a report on the reserve position and the causes which have led or may lead to such a decline,
together with its recommendations concerning the measures it considers necessary to forestall or
otherwise remedy the situation.
(4) The Bank shall make further reports and recommendations at intervals not exceeding
six months until such time as, in the judgement of the Board, the situation is rectified.
PART VII
Foreign Exchange Operations
Operations in gold and foreign exchange
27. The Bank may:
(a) Buy, sell, or deal in gold coins or bullion or other precious metals;
(b) buy, sell, or deal in foreign exchange, using for these purposes any of the instruments
commonly used by bankers;
(c) buy, sell, or deal in treasury bills and other securities issued or guaranteed by foreign
governments or international financial institutions;
(d) open and maintain accounts abroad;
(e) open and maintain accounts and act as agent or correspondent for foreign banks,
foreign governments and foreign government institutions and international financial
institutions.
Limitations on operations of foreign exchange
28.(1) The Bank may, in connection with the operations enumerated in section 27, deal only with
banks doing business in Barbados, the Government, its institutions, agencies and statutory boards,
foreign central and commercial banks, foreign governments and government institutions and
international financial institutions.
(2) Notwithstanding subsection (1), the Bank, with the approval of the Minister, may deal with
other persons under such terms and conditions as the Board deems appropriate.
Determination of buying and selling rates of gold and foreign exchange. 1977-32. Cap. 71
29.(1) The Bank shall determine and make public the rates at which it will buy, sell, or deal in gold
and foreign currencies.
(2) For the purposes of section 29(1) of the Exchange Control Act, the Bank may determine and
make public the rates at which gold and foreign currencies may be bought, sold or dealt in under the
authority of that Act.
Revaluation reserve account
30.(1) The gains arising from any change in the valuation of the Bank's assets in, or denominated in,
gold or foreign currencies as a result of alterations of the parity of Barbados currency, or of any
change in the values, parities, or exchange rates of such assets with respect to Barbados currency shallG/SCM/Q3/BRB/9
Page 229
be credited to a Revaluation Reserve Account and neither they nor the losses arising from any such
change shall be included in the computation of the annual profits and losses of the Bank.
(2) The losses arising from any such change shall be set off against any credit balance in the
Revaluation Reserve Account and, notwithstanding any other provisions of this Act, if such balance is
insufficient to cover such losses, the Government shall issue to the Bank non-negotiable, non-interest-
bearing securities to the extent of the deficiency.
1977-32
(3) Any credit balance in the Revaluation Reserve Account at the end of each financial year of
the Bank shall be applied first to the redemption on behalf of the Government of any outstanding
securities issued under subsection (2) and thereafter to the redemption of any outstanding securities
issued under section 7(4).
(4) If the credit balance remaining after such application as is referred to in subsection (3)
exceeds 5 per cent of the Bank's liabilities on account of currency issued and remaining outstanding as
at the end of the financial year, then subject to subsection (5), an amount equal to:
(a) One-fifth of that remaining balance; or
(b) five per cent of such liabilities;
whichever is the greater, shall be paid into the Consolidated Fund.
(5) If the credit balance does not exceed 5 per cent of the liabilities referred to in section (4), an
amount equal to the total sum of the balance shall be paid into the Consolidated Fund.
(6) No credits or debits shall be made to the Revaluation Reserve Account except in accordance
with this section.
PART VIII
Relations with Banks and other Financial Institutions
Opening accounts for banks and other financial institutions
31. The Bank may open accounts for, and accept deposits from, banks and other financial
institutions operating in Barbados under such terms and conditions as the Board determines.
Operations with account holders
32. The Bank may:
(a) Purchase from, sell to, discount and rediscount for, account holders of the Bank bills
of exchange and promissory notes drawn or made for bona fide commercial,
industrial, or agricultural purposes, bearing two or more good signatures and
maturing within 90 days from the date of their acquisition by the Bank;
Provided that bills of exchange and promissory notes drawn or made for the purpose
of financial seasonal agricultural operations or marketing of crops may mature within
270 days from the date of their acquisition;
(b) purchase from, sell to, discount and rediscount for, account holders of the Bank any
Treasury bills of the Government forming part of a public issue;G/SCM/Q3/BRB/9
Page 230
(c) grant to account holders of the Bank advances for periods not exceeding 180 days:
(i) Secured by:
(A) Instruments specified in paragraphs (a) and (b);
(B) warehouse warrants and documents of title issued in respect of staple
commodities or other goods duly insured;
Provided that the Bank shall determine the maximum percentage of advances in
relation to the current value of such commodities or goods;
(C) holdings of any assets which the Bank is permitted to buy, sell, or deal in
under paragraphs (a), (b), and (c) of section 27;
(D) securities issued or guaranteed by the Government, its institutions, agencies
and statutory boards, subject as provided in section 46; or
(ii) secured by such other assets, on terms and conditions which the Board prescribes.
Determination of bank rates
33. The Bank shall publicly announce its rates for discounts, rediscounts, advances, loans or
overdrafts and may establish different rates and ceilings for various classes of transactions or
maturities.
Inspection of banks and other financial institutions.
34.(1) The Bank may periodically or at its discretion cause an inspection to be made by any of its
officers of any bank and its books and accounts for the purpose of ascertaining the nature of its
business and the condition of its affairs.
1975-13
(2) On the recommendation of the Bank, the Minister may, by notice published in the Official
Gazette , extend the authority conferred on the Bank by subsection (1) to other financial institutions
specified in the notice in order to ascertain the nature of their businesses and the condition of their
affairs for the purpose of performing its functions under this Act.
(3) Any officer authorized under this section to inspect a bank or other financial institution may:
(a) Require any director or employee of any bank or other financial institution to furnish
such information as the Bank may consider necessary for the purpose of the
inspection; or
(b) require any such director, officer, or employee to produce for inspection any books,
records, or other documents in his possession containing or likely to contain any such
information.
(4) Any person who:
(a) Fails, refuses or neglects to comply with any requirement of an officer of the Bank
made under subsection (3); orG/SCM/Q3/BRB/9
Page 231
(b) in complying with any such requirement, furnishes any information or produces any
book, record or other document which he knows to be false in any material particular;
is guilty of an offence and liable on summary conviction to a fine of 500 dollars or to
imprisonment for six months or to both.
Required reserves of banks
35.(1) The Bank may by notice published in the Official Gazette and by written notice to each bank
at its principal place of business in Barbados prescribe the maintenance of required reserves against
deposit and other similar liabilities which may be specified for this purpose.
(2) The reserves prescribed under subsection (1) shall be maintained by way of cash holdings or
by way of deposits with the Bank in such proportion as the Bank prescribes.
(3) The Bank may prescribe different reserve ratios for different classes of deposit and other
similar liabilities and may prescribe the method of their computation:
Provided that:
(a) The Bank shall not require a bank to hold a total amount of reserves in excess of
20 per cent of the total deposit and other similar liabilities to which reserve ratios
have been made applicable; but when the monetary situation requires, the Bank may,
with the concurrence of the Minister, prescribe higher ratios appropriate to the
circumstances;
(b) the initial prescription of, or any increase in, the required reserve ratios shall be
effective only after at least 15 days notice thereof has been given;
(c) the Bank may determine that the requirements of this subsection may be met by
meeting the prescribed reserve ratios on the basis of averages of holdings over such
period as the Bank prescribes;
(d) the prescribed reserve ratios shall be uniform for all banks.
(4) The Bank may impose on any bank which fails to maintain required reserves in the
appropriate ratio prescribed under this section, a charge at an annual rate not exceeding twice the
highest rate fixed at the time of such failure, by the Bank under section 33 in respect of its operations.
(5) The charge to which subsection (4) refers may be imposed on the amount of the deficiency
for each day during which the deficiency continues.
Regulation of interest and credit
36.(1) The Bank may, with the approval of the Minister, prescribe by notice published in the Official
Gazette and by written notice to each bank at its principal place of business in Barbados:
(a) The methods of computation and maximum amounts of interest payable in respect of
deposit and other similar liabilities; and
(b) the permissible purposes, aggregate ceilings, maximum amounts beyond which the
Bank's approval is necessary, maximum maturities and maximum interest chargeable
and minimum cash margin or security required, in respect of:G/SCM/Q3/BRB/9
Page 232
(i) The making of advances, whether by loans or overdrafts, and investments;
(ii) the discounting of bills of exchange, promissory notes and other commercial
or financial papers;
(iii) the issuing of letters of credit;
(iv) the granting of acceptances and other forms of credit.
(2) With the approval of the Minister, subsection (1) may be made applicable by the Bank by
notice published in the Official Gazette and by written notice to any person having as a main object of
his business the extension of credit.
(3) The Bank may examine the accounts, books and papers of any person who it has reason to
suspect is extending or has extended credit in contravention of subsection (1) and the refusal to submit
such accounts, books and papers shall be prima facie evidence of such contravention.
(4) Notices issued under this section shall apply uniformly in Barbados and shall come into effect
on such date specified not earlier than 14 days after the date of issue, and the Bank in its notices may
differentiate between banks and other creditors of classes thereof in respect of the items set out in
subsection (1).
(5) Any bank which contravenes subsection (1) is liable to pay to the Bank for each such
contravention a charge not exceeding five hundred dollars for every day during which the
contravention continues.
(6) Any person to whom subsection (1) is made applicable pursuant to subsection (2) is guilty of
an offence if:
(a) He contravenes subsection (1); or
(b) he supplies to the Bank any information which he knows to be false in any material
particular; or
(c) he fails to furnish, any information required by the Bank to satisfy the Bank that he is
complying with subsection (1);
and is liable on summary conviction:
(i) In the case of an offence under paragraph (a), to a fine of 50 dollars for each
day during which the contravention continues; or
(ii) in the case of an offence under paragraph (b) or (c) to a fine of 500 dollars or
to imprisonment for three months or to both.
Local assets ratio
37. A bank shall maintain assets consisting of claims payable in the currency of Barbados and
other assets situate in Barbados in such minimum proportions of its deposit and similar liabilities
payable in Barbados as the Bank may prescribe.G/SCM/Q3/BRB/9
Page 233
Foreign working balances
38. The Bank may prescribe the maximum amount of the working balances which banks and
other financial institutions may hold in foreign currencies generally or in any specified currency or
currencies.
Clearing house
39. The Bank may at an appropriate time and in conjunction with banks and other financial
institutions organize a clearing house at such place or places as may be desirable.
Insurance and guarantee schemes. 1977-32
40.(1) The Bank may, with the approval of the Minister, administer or participate in schemes for the
purpose of:
(a) Insuring bank deposits;
(b) providing export credit insurance and guarantee; and
(c) providing guarantees for credit extended by banks and other financial institutions.
(2) Subject to subsection (3), the Bank may, with the approval of the Minister, subscribe to, hold,
and sell, shares of a corporation organized with the approval or under the authority of the Government
for any of the purposes specified in subsection (1).
(3) The total value of the Bank's shareholding in corporations to which subsection (2) refers shall
not exceed 50 per cent of the aggregate amount of the paid-up capital and General Reserve of the
Bank.
(4) Subject to subsection (5), the Bank may, with the approval of the Minister establish special
funds in order to facilitate the administration of the schemes specified in subsection (1) and may make
annual contributions thereto out of its profits in accordance with paragraph (b) of section 9(2).
(5) The Bank may, with the approval of the Minister, advance to any such special fund such sums
as may be required during a financial year and may recover such sums advanced from its annual
contribution to the fund for that year.
(6) If the Bank ceases to administer any of the schemes specified in subsection (1), the special
fund relating to the particular scheme which the Bank has ceased to administer, may be liquidated in
such manner as the Bank, with the approval of the Minister, determines.
Special Credit Trust
41. There shall be established a Special Credit Trust to be constituted by amounts from time to
time transferred by the Bank pursuant to section 9, and by any accruals thereto, whether through
operations or otherwise, to be held in trust and administered by the Bank, as sole trustee, to the end of
facilitating:
1981-32. (a) The purchase, holding, guarantee, or sale of debentures, bonds or other similar debt
obligations, having a maturity not in excess of ten years from the date of acquisition
by the Trust, issued and offered publicly by such financial institutions not within the
regulatory jurisdiction of the Bank as the Board may designate;G/SCM/Q3/BRB/9
Page 234
1981-32. (b) the holding of equity in statutory and private corporations, as the Board may with the
approval of the Minister determine.
PART IX
Relations with the Government
Bank to be banker, fiscal agent and depositary to the Government
42.(1) The Bank shall be the banker and fiscal agent of the Government and shall be the depositary
of Government funds:
(a) The Bank may act in such capacities to Government institutions, agencies and
statutory boards; and
(b) the Government may maintain working balances with, and generally use the services
of, other banks;
in such cases, for such periods of time, and on such other terms and conditions as may be
agreed between the Minister and the Bank.
(2) The Government, through the Minister, may request the Bank to render advice and to furnish
reports on matters relating to the purposes of the Bank.
(3) It shall be the duty of the Bank to inform and advise the Government, through the Minister,
concerning any matter which in the opinion of the Bank is likely to affect the achievement of its
purposes.
Depositary and fiscal agency of international financial institutions
43. The Bank shall, upon designation by the Minister, serve as the depositary and fiscal agency
of, and the institution through which dealings shall be conducted with international financial
institutions of which Barbados is a member.
Credit to the Government, its institutions, agencies and statutory boards
44. Except in accordance with sections 32(b), 32(c)(i)(D), 45 and 46, the Bank shall not, directly
or indirectly, make advances to, or acquire the notes, bills, securities or other evidences of debt of, or
guaranteed by, the Government, its institutions, agencies and statutory boards; but this section shall
not operate to prevent the acquisition by the Bank of securities transferred to it by the Government in
accordance with section 7 or 30.
Advances to the Government
45.(1) The Bank may make temporary advances, subject to repayment within three months
following the end of the financial year in which they were granted, at such rates of interest as it may
determine:
(a) To the Government;
(b) with the approval of the Minister, to Government institutions, agencies and statutory
boards.G/SCM/Q3/BRB/9
Page 235
(2) Without limiting the generality of subsection (1), the Bank is expressly authorized to make
advances to the Government, on such terms and conditions as may be agreed, in respect of
subscriptions and other payments resulting from or incidental to, the membership of Barbados in any
international bank or international monetary authority established under governmental auspices, the
participation of Barbados in any account thereof, and any transactions and operations undertaken in
connection therewith.
Acquisition of evidence and indebtedness issued by the Government
46. The Bank may purchase, hold, and sell notes, bills, securities or other evidences of
indebtedness issued or guaranteed by the Government, its institutions, agencies and statutory boards,
which were publicly offered for sale or form part of an issue which is being made to the public at the
time of acquisition by the Bank.
Consultation on budget and credit operations
47. The Bank shall be consulted by:
(a) The Minister on the total amount of credit to be extended by the Bank to the
Government during the Government's financial year;
(b) the Government, its institutions and agencies, and statutory boards at any time when
either domestic or foreign credit operations are contemplated and in the event that, in
the opinion of the Bank, such operations individually or collectively appear to be of a
magnitude inappropriate to prevailing economic conditions, the Bank shall report to
the Minister, drawing attention to the situation and recommending measures to
remedy the situation.
Reports and recommendations on bank credit to the Government
48. Whenever the total amount of credit being extended by the Bank to the Government, its
institutions, agencies and statutory boards by advances under section 45, the acquisition of evidences
of indebtedness under sections 32(b) and 46, and the acceptance of securities as collateral under
section 32(c)(i)(D) threaten either:
(a) To exceed the amount agreed under section 47(a); or
(b) to endanger monetary stability;
the Bank shall submit a report to the Minister drawing attention to the situation, analysing the
causes which have led thereto, and recommending measures which it deems necessary to
forestall or otherwise remedy the situation.
Orders
49.(1) If, after consultation with the Bank, the Minister is of the opinion that the policies being
pursued by the Bank are not adequate for, or conducive to, the achievement of the purposes of the
Bank as set out in section 5, the Minister may issue a written order to the Bank determining the policy
to be adopted by the Bank, and the Bank shall thereupon give effect to that policy while the order
remains in operation.
(2) The order acknowledging the Government's assumption of responsibility for the policy shall
be published forthwith in the Official Gazette .G/SCM/Q3/BRB/9
Page 236
(3) The Minister shall cause to be laid before Parliament, as soon as may be after the Minister has
informed the Bank of the policy determined, a copy of the order determining the policy, and
statements by the Minister and the Bank in respect of the matter which occasioned the issuance of the
order.
PART X
Accounts
Financial year
50. The financial year of the Bank shall coincide with the calendar year.
Audit
51. The accounts of the Bank shall be audited at least once every financial year by an auditor
appointed by the Board with the approval of the Minister.
Accounts and operations
52.(1) The Bank shall, as soon as may be after the end of every month, make up a statement of the
condition of the Bank as at the close of business on the last business day of each month, and shall
transmit a copy thereof to the Minister, who shall cause it to be published in the Official Gazette .
(2) Within three months of the close of each financial year or such longer period as the Minister
may allow, the Board shall:
(a) Transmit to the Minister a copy of its annual accounts certified by the auditor;
(b) submit to the Minister a report on its operations during the year.
(3) The Minister shall lay a copy of the annual accounts of the Bank, together with the certificate
of the auditor and the report on the Bank's operations for the year, before Parliament as soon as
practicable after he has received such accounts, certificate, and report.
(4) The Bank shall publish the said report after it has been laid before Parliament by the Minister.
PART XI
Miscellaneous
Reports and announcements
53.(1) The Bank may issue such reports and publications as the Board considers of public interest.
(2) The Bank may require banks, other financial institutions and persons who may be subject to
the provisions of this Act to furnish to the Bank such information and data as are necessary to enable
it to perform its functions under this Act and may publish such in any form it may determine:
Provided that individual transactions shall not be identified in the publication.
(3) Any person who refuses or fails within a reasonable time to furnish to the Bank any
information or data requested by it under subsection (2) is guilty of an offence and liable on summary
conviction to a fine of 500 dollars.G/SCM/Q3/BRB/9
Page 237
Advances to officers and employees
54. The Bank may, subject to terms and conditions to be prescribed by the Board, grant advances
to any of its officers or employees:
(a) For the purchase, construction or repair of one residential house for his personal use
against the security of the said house; and
(b) for other purposes in an amount not to exceed during the time they are outstanding
the annual remuneration received by the borrower from the Bank.
Restricted titles. Cap. 322
55. Except with the written consent of the Minister on the recommendation of the Bank, no bank
or other financial institution shall hereafter be licensed under the Banking Act by a name which
includes any of the words "Central", "National", "Barbados", "Reserve" or "State" or their equivalent
in any other language.
Exemption. 1982-22
56. The Bank is exempt from:
(a) The payment of income tax and any other tax imposed on the income or profits of
persons;
(b) the payment of stamp duty on any document resulting from transactions with persons
resident outside Barbados; and
Cap. 322. (c) the requirements of the Banking Act .
Liquidation of Bank
57. The Bank may not be liquidated except by an Act.
Initial expenses
58.(1) The Minister may advance to the Bank such sums as may be necessary to enable the Bank to
meet any deficit or expected deficit in its income in relation to its expenditure during the period
immediately following its establishment until the appointed day or such later date as may be agreed
upon between the Bank and the Minister.
(2) Advances under subsection (1) are hereby charged on and are payable out of the Consolidated
Fund.
(3) Such advances shall:
(a) Bear interest at such rate as may be agreed upon between the Bank and the Minister;
(b) be repaid, commencing with the close of the financial year in which the Bank's
accounts first show a net profit, in such manner as may be agreed upon between the
Bank and the Minister.G/SCM/Q3/BRB/9
Page 238
Residence. 1984-19
59.(1) The Governor is entitled to occupy a fully furnished residence without payment of rent.
Cap. 73
(2) With effect from 1 January 1984, the value of the residence mentioned in subsection (1) shall
not be included in calculating the assessable income of the person referred to in that subsection for the
purposes of the Income Tax Act .G/SCM/Q3/BRB/9
Page 239
S.I. 1998 No. 144
The Central Bank of Barbados Act
Cap. 323C
THE CENTRAL BANK OF BARBADOS (INSPECTION
OF FINANCIAL INSTITUTIONS (REVOCATION)
NOTICE, 1998
The Minister in exercise of the powers conferred on him by section 34(2)
of the Central Bank of Barbados Act , on the recommendation
of the Bank, gives the following notice.
1. This notice may be cited as the Central Bank of Barbados (Inspection of Financial
Institutions) (Revocation) Notice, 1998 .
S.I.1990
No. 61 2. The Central Bank of Barbados (Inspection of Financial Institutions)Notice, 1990 , is
revoked.
Given by the Minister this 10thday of November, 1998.
O.S. ARTHUR
Minister responsible for Finance.
CHAPTER 323C
CENTRAL BANK OF BARBADOS
ARRANGEMENT OF SECTIONS
PART I
Preliminary
Section
1. Short title.
2. Interpretation.
PART II
Constitution
3. Establishment of Bank.
4. Status and powers.
5. Purposes.
6. Offices, branches, agents and correspondents.G/SCM/Q3/BRB/9
Page 240
PART III
Capital, Profit and Reserves
7. Capital.
8. Profits.
9. General reserve.
PART IV
Administration
10. Board of Directors and General Manager.
11. Governor.
12. Other Directors.
13. Disqualification and resignation.
14. Appointment to fill a vacancy.
15. Meetings of the Board.
16. Power to appoint officers, agents and correspondents.
17. Conflicts of interest.
18. Secrecy.
PART V
Currency
19. Currency.
20. Parity of Barbados dollar.
21. Sole right to issue currency notes and coins and power to recall them.
22. Denomination and other aspects of currency.
23. Issuance, reissuance and exchange.
24. Refunds.
25. Mutilation and defacing currency notes.
PART VI
Reserve of External Assets
26. Reserve of External Assets.
PART VII
Foreign Exchange Operations
27. Operations in gold and foreign exchange.
28. Limitations on operations of foreign exchange.
29. Determination of buying and selling rates of gold and foreign exchange.
30. Revaluation reserve account.G/SCM/Q3/BRB/9
Page 241
PART VIII
Relations with Banks and other Financial Institutions
31. Opening accounts for banks and other financial institutions.
32. Operations with account holders.
33. Determination of bank rates.
34. Inspection of banks and other financial institutions.
35. Required reserves of banks.
36. Regulation of interest and credit.
37. Local assets ratio.
38. Foreign working balances.
39. Clearing house.
40. Insurance and guarantee schemes.
41. Special Credit Trust.
PART IX
Relations with the Government
42. Bank to be banker, fiscal agent and depositary to the Government.
43. Depositary and fiscal agency of international financial institutions.
44. Credit to the Government, its institutions, agencies and statutory boards.
45. Advances to the Government.
46. Acquisition of evidence and indebtedness issued by the Government.
47. Consultation on budget and credit operations.
48. Reports and recommendations on bank credit to the Government.
49. Orders.
PART X
Accounts
50. Financial year.
51. Audit.
52. Accounts and operations.
PART XI
Miscellaneous
53. Reports and announcements.
54. Advances to officers and employees.
55. Restricted titles.
56. Exemption.G/SCM/Q3/BRB/9
Page 242
57. Liquidation of Bank.
58. Initial expenses.
59. Residence.G/SCM/Q3/BRB/9
Page 243
CHAPTER 323C
CENTRAL BANK OF BARBADOS
An Act to Provide for the Establishment of a Central Bank of Barbados
and for Related Matters
1972-6.
1975-13.
1977-32.
1981-22.
1981-32.
1982-22.
1984-19.
1989-22.
[2 May 1972] Commencement. S.I. 1972-77.
PART I
Preliminary
Short title
1. This Act may be cited as the Central Bank of Barbados Act .
Interpretation
2. For the purposes of this Act:
"Appointed day" means the day appointed by the Minister under section 19(1);
"Bank" means the Central Bank of Barbados established by section 3;
Cap. 322. "bank" means a bank licensed to carry on banking business in Barbados under the Banking
Act;
"Board" means the Board of Directors of the Bank constituted and appointed under Part IV;
1989-22. "Deputy Governor" means a Deputy Governor of the Bank;
"Director" means a member of the Board;
1977-32. "financial institution" means any person carrying on business who is so designated by the
bank for the purposes of this Act;
"Governor" means the Governor of the Bank;
"Minister" means the Minister responsible for Finance.
PART II
Constitution
Establishment of Bank
3. There is hereby established a bank which shall be known as the Central Bank of Barbados to
carry on business in accordance with this Act.G/SCM/Q3/BRB/9
Page 244
Status and powers. Cap. 1
4. The Bank shall be a body corporate and, subject to the limitations contained in this Act,
section 21 of the Interpretation Act applies to the Bank.
Purposes
5. The purposes of the Bank shall be:
(a) To regulate the issue, supply, availability and international exchange of money;
(b) to promote monetary stability;
(c) to promote a sound financial structure;
(d) to foster the development of money and capital markets in Barbados; and
(e) to foster credit and exchange conditions conducive to the orderly and sustained
economic development of Barbados.
Offices, branches, agents and correspondents
6. The Bank shall have its head office in the City of Bridgetown in Barbados and may establish
branches within Barbados, appoint agents and correspondents within Barbados and abroad, and with
the approval of the Minister establish offices abroad.
PART III
Capital, Profit and Reserves
Capital. 1977-32
7.(1) The authorized capital of the Bank shall be $5,000,000 and may be increased by such
amounts as may be proposed by the Board and approved by the Minister.
(2) There shall be paid up by the Government in respect of the authorized capital of the Bank
upon the establishment of the Bank an amount of $2,000,000 and such further amounts thereafter as
may be proposed by the Board and approved by the Minister.
(3) All capital of the Bank, as and when subscribed, shall be for the sole account of the
Government and shall not be transferable or subject to encumbrance, and no reduction of capital shall
be effected except by an amendment of this Act.
(4) The Minister, notwithstanding any other provision of this Act, shall cause to be transferred to
the ownership of the Bank non-negotiable, non-interest-bearing securities issued by the Government
for such an amount as is necessary for the purpose of preserving the paid-up capital from any
impairment whenever, in the judgement of the Board, the assets of the Bank are less than the sum of
its liabilities and paid-up capital.
Profits
8. The net profits of the Bank for each financial year shall be determined after meeting all
current expenditures for that year and after providing:G/SCM/Q3/BRB/9
Page 245
(a) For bad and doubtful debts, depreciation in assets, and contributions to staff and
pension funds and such other contingencies and accounting provisions as are usually
made by banks;
(b) with the approval of the Minister, for such other purposes as the Board considers
necessary.
General Reserve
9.(1) The Bank shall establish a General Reserve to which shall be allocated at the end of each
financial year of the Bank:
(a) Fifty per cent of the net profits of the Bank whenever the General Reserve does not
exceed the authorized capital of the Bank;
(b) twenty-five per cent of the net profits of the Bank whenever the General Reserve
exceeds the authorized capital of the Bank until the General Reserve is equal to twice
the authorized capital of the Bank:
Provided that the General Reserve may be increased beyond such amount as such rate
and to such extent as may be agreed between the Minister and the Bank.
(2) After appropriate allocations have been made to the General Reserve under subsection (1):
1977-32. (a) Fifty per cent of the remainder of the net profits for the financial year shall be applied
to the redemption on behalf of the Government of any securities held by the Bank
which have been issued in accordance with section 7(4) or section (30)2; and
(b) out of the remaining balance of net profits for the year, suitable amounts to be
determined by the Bank in consultation with the Minister may be transferred to
special funds established under section 40 and the Special Credit Trust established
under section 41.
(3) The balance of the net profits for the financial year remaining after all deductions under
subsections (1) and (2) have been made shall be paid into the Consolidated Fund as soon as
practicable after the end of each financial year.
(4) No deductions under subsection (1) or (2)(a) shall be required to be made, nor shall any
payment under subsection (3) be made if, in the judgement of the Board, the assets of the Bank are, or
after the deductions or payment, would be, less than the sum of its liabilities and paid-up capital.
PART IV
Administration
Board of Directors and General Manager
10.(1) There shall be a Board of Directors of the Bank, which shall be responsible for the policy and
general administration of the Bank.
(2) The Board shall consist of a Governor and five other Directors.
(3) There shall be two Deputy-Governors of the Bank who shall perform the functions conferred
on them by this Act and, under the supervision of the Governor, such other functions as may be
conferred on them by the Board.G/SCM/Q3/BRB/9
Page 246
(4) The Board may make by-laws regulating the conduct of the Bank's business and may make
regulations and issue orders for the purpose of giving effect to the provisions of this Act.
(5) Before making any regulations under subsection (4) the Board may ascertain the views of
interested parties by affording them an opportunity to comment thereon.
1977-32
(6) Any by-laws, regulations or orders made or issued under subsection (4) shall be authenticated
in such manner as the Board determines.
Cap. 1
(7) Notwithstanding section 16(1) of the Interpretation Act , it shall not be necessary for by-laws
made under subsection (4) to be published in the Official Gazette , and such by-laws, unless they
otherwise provide, shall come into operation on the date on which they are made.
Governor. 1989-22
11.(1) The Governor shall be a person of recognized experience in financial matters and shall be
appointed by the Minister by instrument in writing for a period not exceeding five years and shall be
eligible for reappointment; he shall be appointed on such terms and conditions as may be set out in
his instrument of appointment, and such terms and conditions may not be altered to his disadvantage
during his tenure of office.
1989-22
(2) The Governor, or in case of his absence or disability, a Deputy Governor, shall:
(a) Preside as chairman at the meetings of the Board;
(b) serve as chief executive officer of the Bank responsible to the Board for the execution
of its policy and the management of the Bank;
(c) except as may otherwise by provided in this Act, the by-laws of the Bank or the
resolutions of the Board, have the power to act, contract, and sign instruments and
documents on behalf of the Bank and, pursuant to the resolutions of the Board,
delegate such power to other officers of the Bank.
1989-22
(3) The Deputy Governors may attend all meetings of the Board but, shall not have the right to
vote at those meetings.
(3A) Notwithstanding subsection (3) where a Deputy Governor presides as chairman under
subsection (2)(a) he shall have the right to vote.
1989-22
(4) The Governor and the Deputy Governors shall devote the whole of their professional services
to the Bank and while holding office shall not without the approval of the Minister:
(a) Receive any salary or supplementation thereto from any source other than the Bank;G/SCM/Q3/BRB/9
Page 247
(b) occupy any other office or employment, whether remunerated or not.
1989-22
(5) Notwithstanding subsection (4), the Governor may:
1989-22. (a) Act as a member of any board, committee or commission established by the
Government;
1989-22. (b) become a governor, director, or member of the Board by whatever name called, of
any international bank or international financial institution of which Barbados is a
member;
1989-22. (c) become a director of any corporation in Barbados in which the Bank is a participant
in accordance with section 40.
Other Directors
12.(1) The five other Directors of the Bank, who shall be persons of recognized standing and
experience in business, professional or academic matters, shall be appointed by the Minister by
instrument in writing.
(2) Such Directors shall hold office for three years and be eligible for reappointment; but of the
first five Directors to be appointed under this section, one shall be appointed for one year, two shall be
appointed for two years and two shall be appointed for three years.
(3) Such directors shall be entitled to fees and allowances as may be prescribed by the Board and
approved by the Minister.
Disqualification and resignation. 1989-22
13.(1) No person shall be appointed, or, as the case may be, remain, a Director of a Deputy
Governor if:
(a) He is a director, officer or employee of or the owner of or a shareholder in any bank
under the regulatory jurisdiction of the Bank;
1992-17. (b) he has been convicted by a court of an arrestable offence or other offence involving
dishonesty;
(c) he has been adjudged or otherwise declared bankrupt under any law in force in
Barbados;
1989-22. (d) he is a person certified to be insane or otherwise adjudged to be of unsound mind
under any law in force in Barbados; or
(e) the appointing authority, on the recommendation of the Board, finds:
(i) That he is incompetent or otherwise incapable of carrying out his duties; or
1989-22. (ii) that he is guilty of serious misconduct in relation to his duties.G/SCM/Q3/BRB/9
Page 248
(1A) No person shall remain a Director if he has been absent without leave of the Board from three
or more consecutive regular meetings of the Board.
1989-22
(2) Subject to subsection (3), a Director may resign his office on giving to the Minister in writing:
1989-22. (a) In the case of the Governor, not less than three months' notice; or
(b) in the case of any other Director, not less than one month's notice.
(3) The Minister may waive the period of notice required by subsection (2).
Appointment to fill a vacancy. 1989-22
14.(1) If a Director dies, resigns or otherwise vacates his office before the expiry of the term for
which he has been appointed, another person shall be appointed in his place in the manner provided
by section 12(1), for the unexpired period.
1989-22
(2) The Minister, on the finding of the Board of the temporary absence or incapacity of a Director
may appoint in the manner provided by section 12(1), a substitute to serve until the expiry of the term
or a determination by the Board that such state has ceased, whichever is the earlier.
Meetings of the Board
15.(1) The Board shall meet as often as the business of the Bank requires but not less frequently than
ten times in each year; but there shall not be an interval greater than two months between one
meeting of the Board and the next meeting.
(2) Pursuant to the by-laws, the Board may provide for regular meetings for which no notice shall
be necessary and special meetings, to be convened at the written request of the Governor or any two
Directors, for which notice shall be required.
(3) Four Directors of whom one shall be the Governor, or in case of his absence or disability, a
Deputy Governor, shall form a quorum at any meeting, and decisions shall be adopted by a simple
majority of the votes of the members present, except that in the event of an equality of votes the
chairman shall have and exercise a second or casting vote.
1989-22
(4) All acts done by a person acting in good faith as a Director shall be as valid as if he were a
Director, notwithstanding that some defect in his appointment or qualification to be afterwards
discovered.
Power to appoint officers, agents and correspondents. 1977-32. 1989-22
16.(1) The Board may appoint and employ, at such remuneration and on such terms and conditions
as it may prescribe, such officers and employees, agents and correspondents as the Board considers
necessary for the efficient functioning of the Bank.G/SCM/Q3/BRB/9
Page 249
(1A) Subject to subsection (1) the deputy Governors shall be appointed by the Board with the
approval of the Minister on such terms and conditions as the Board with the approval of the Minister
may prescribe.
(2) No salary, fee, wage, allowance or other remuneration paid by the Bank shall be computed by
reference to the net or other profits of the Bank.
Cap. 25
(3) Where a public officer is seconded or temporarily transferred for duty to an office in the Bank
from a pensionable office within the meaning of section 2(1) of the Pensions Act, the period during
which he serves in the Bank shall, unless the Governor-General otherwise decides, count for pension
under that Act as if the officer had not been so seconded or temporarily transferred.
(4) Where:
(a) A public officer is transferred to any office in the service of the Bank; or
(b) an officer of the Bank is transferred to an office in the public service;
Vol. 1. S.I. Cap. 25
the Pensions Act shall apply to him as if his service with the Bank were other public service
within the meaning of that Act, and the Pensions Regulations, 1947 shall apply to him accordingly as
if the Bank were a Scheduled Government within the meaning of Regulation 8(1) of those regulations.
Conflicts of interest. 1989-22
17.(1) No Director shall act as a delegate of any commercial, financial, agricultural, industrial or
other interests, or receive or accept directions therefrom in respect of duties to be performed under
this Act.
1989-22
(2) All Directors shall fully disclose to the Board any commercial, financial, agricultural,
industrial or other interests with which they may at any time directly or indirectly be connected, and
shall refrain from voting on any matter related thereto which becomes the subject of Board action;
but such an interest, if so disclosed, shall not disqualify the interested party for the purpose of
constituting a quorum.
(3) No Director nor any officer or employee of the Bank shall accept any gift or advantage for
himself, or, in his behalf, for persons with whom he may have family, business, or financial
connections if the acceptance thereof would result, or give the appearance of resulting, in a diminution
of his impartial devotion to his duties under this Act.
Secrecy
18.(1) Except for the purpose of the performance of his duties or the exercise of his functions or
when lawfully required to do so by any court or under the provisions of any law, no Director, officer
or employee of the Bank shall disclose to any person any material information relating to the affairs of
the Bank or of any other bank or financial institution or other person, firm, company or organization
which he has acquired in the performance of his duties or the exercise of his functions.G/SCM/Q3/BRB/9
Page 250
(2) For the purposes of this section "employee" includes any person who is engaged in
employment with the Bank under a contract of service.
1977-32
(3) Any person who contravenes subsection (1) is guilty of an offence and liable on summary
conviction to a fine of $500 or to imprisonment for six months or to both.
PART V
Currency
Currency
19.(1) From and after such date as the Minister may appoint1by order for the purpose, the unit of
currency of Barbados shall be the Barbados dollar divided into 100 cents.
(2) Notwithstanding any enactment to the contrary, an order under subsection (1) shall be
published in the Official Gazette and in one newspaper circulating in Barbados.
1981-32
(3) With effect from the appointed day the East Caribbean dollar shall cease to be the unit of
currency of Barbados, and any reference in:
(a) Any enactment; and
(b) a contract, document, sale, payment, bill, note, instrument or security for money, and
every transaction, dealing, proceeding, matter and thing whatsoever related to money
or involving the payment of money or the liability to pay money, in the absence of an
express agreement not invalid or unlawful by virtue of any enactment involving the
payment of money or the liability to pay money which is the currency of or legal
tender in a country other than Barbados;
shall be deemed to be expressed in terms of the Barbados dollar at the conversion rate
declared by the Bank for this purpose by notice published in the Official Gazette .
Parity of Barbados dollar
20.(1) The par value of the Barbados dollar shall be 0.444335 grams of fine gold and any change
thereof shall be determined by the Minister after considering the recommendation of the Bank.
(2) In the determination of any change of the par value, the Minister shall have due regard for the
obligations which Barbados has assumed in accordance with the provisions of any international
monetary agreements to which it is a party or to which it has adhered.
(3) Notice of any change of the par value shall be published in the Official Gazette .
21.(1) With effect from the appointed day the Bank shall have the sole right of issuing currency
notes and coins in Barbados, whether on its own account or as agent of an international financial
authority, which are legal tender in Barbados.
1The appointed day was 3 December 1973 (see S.I. 1973 No. 175).G/SCM/Q3/BRB/9
Page 251
(2) Neither the Government nor any other person shall issue currency notes, bank notes, or coins
or any documents or tokens payable to bearer on demand being documents or tokens having the
appearance of or purporting to be currency notes or coins.
1981-32
(3) Currency notes issued by the Bank shall be legal tender in Barbados at their face value for the
payment of any amount.
(4) Coins issued by the Bank on its own account:
(a) In denominations of $10 or more, shall be legal tender in Barbados at their face value
for the payment of any amount;
(b) in denominations of less than $10, shall be legal tender in Barbados at their face value
for the payment of any amount not exceeding $10.
(5) The Bank may, on giving not less than three months' notice in the Official Gazette and,
notwithstanding any enactment to the contrary, in at least one newspaper in general circulation in
Barbados, call in any currency notes and coins which it has issued, on payment of their face value,
and any such notes or coins shall, on the expiration of such notice, cease to be legal tender: but the
holders of such notes and coins shall be entitled thereafter to claim payment from the Bank in
accordance with such regulations as it may issue.
Denomination and other aspects of currency
22.(1) Currency notes and coins issued by the Bank shall be in such denominations and in such
forms and designs as shall be determined by the Bank with the approval of the Minister.
(2) The printing of such currency notes and the minting of such coins shall be the duty of the
Bank which shall be responsible for the security and safe-keeping of unissued stocks of currency and
for the custody and destruction, as necessary, of plates, dies and retired currency.
(3) The standard weight and composition of coins issued by the Bank, and the amount of remedy
and variation, shall be determined by the Bank with the approval of the Minister.
Issuance, reissuance and exchange
23. The Bank shall issue, reissue, and exchange on demand and without charge currency notes
and coins which it has issued: but in the event of the temporary unavailability of a requested
denomination, the Bank may discharge this obligation by delivering currency notes and coins of
available denominations which most nearly approximate to those requested.
Refunds
24.(1) No person shall be entitled to recover from the Bank as of right the value of any lost,
damaged or mutilated currency note or coin.
(2) The circumstances in which, and the conditions and limitations subject to which, the value of
lost, damaged or mutilated currency notes or coins may be refunded as of grace shall be determined
by the Bank.G/SCM/Q3/BRB/9
Page 252
Mutilation and defacing currency notes
25.(1) Any person who without lawful authority or excuse (the proof whereof shall lie upon the
person accused) mutilates, cuts, tears or perforates with holes any currency note which is legal tender
in Barbados or in any way defaces any such note, whether by writing, printing, drawing or stamping
thereon, or by attaching of affixing thereto anything in the nature or form of any advertisement, is
guilty of an offence and liable on summary conviction to a fine of $500.
(2) The Bank shall assist in the enforcement of any law relating to the forgery or counterfeiting of
currency which is legal tender in Barbados and the certificate of a duly authorized officer of the Bank
that an item in question is or is not genuine shall be prima facie evidence of the fact certified in any
legal proceedings in Barbados.
PART VI
Reserve of External Assets
Reserve of External Assets
26.(1) The Bank shall maintain a Reserve of External Assets consisting of all or any of the following
on such terms and conditions as the Board prescribes:
(a) Gold;
(b) foreign exchange in the form of currency, cash or bank balances held abroad;
(c) any internationally recognized reserve asset, including:
(i) The ability of Barbados to make a gold tranche purchase in the General
Account of the International Monetary Fund;
(ii) the holding of any special drawing rights in the International Monetary Fund
by Barbados;
(d) bills of exchange and promissory notes denominated in foreign currency and payable
at any place outside Barbados;
(e) treasury bills issued by foreign governments specified from time to time by the
Board;
(f) securities issued or guaranteed by foreign governments or international financial
institutions specified from time to time by the Board.
(2) The Bank shall use its best endeavours to maintain the Reserve of External Assets at a level
adequate for the international transactions of Barbados.
(3) If the Reserve of External Assets has declined, or in the judgement of the Board appears to be
in danger of declining, so as to jeopardise the adequacy of such Reserve, the Bank shall submit to the
Minister a report on the reserve position and the causes which have led or may lead to such a decline,
together with its recommendations concerning the measures it considers necessary to forestall or
otherwise remedy the situation.
(4) The Bank shall make further reports and recommendations at intervals not exceeding
six months until such time as, in the judgement of the Board, the situation is rectified.G/SCM/Q3/BRB/9
Page 253
PART VII
Foreign Exchange Operations
Operations in gold and foreign exchange
27. The Bank may:
(a) Buy, sell, or deal in gold coins or bullion or other precious metals;
(b) buy, sell, or deal in foreign exchange, using for these purposes any of the instruments
commonly used by bankers;
(c) buy, sell, or deal in treasury bills and other securities issued or guaranteed by foreign
governments or international financial institutions;
(d) open and maintain accounts abroad;
(e) open and maintain accounts and act as agent or correspondent for foreign banks,
foreign governments and foreign government institutions and international financial
institutions.
Limitations on operations of foreign exchange
28.(1) The Bank may, in connection with the operations enumerated in section 27, deal only with
banks doing business in Barbados, the Government, its institutions, agencies and statutory boards,
foreign central and commercial banks, foreign governments and government institutions and
international financial institutions.
(2) Notwithstanding subsection (1), the Bank, with the approval of the Minister, may deal with
other persons under such terms and conditions as the Board deems appropriate.
Determination of buying and selling rates of gold and foreign exchange. 1977-32. Cap. 71
29.(1) The Bank shall determine and make public the rates at which it will buy, sell, or deal in gold
and foreign currencies.
(2) For the purposes of section 29(1) of the Exchange Control Act, the Bank may determine and
make public the rates at which gold and foreign currencies may be bought, sold or dealt in under the
authority of that Act.
Revaluation reserve account
30.(1) The gains arising from any change in the valuation of the Bank's assets in, or denominated in,
gold or foreign currencies as a result of alterations of the parity of Barbados currency, or of any
change in the values, parities, or exchange rates of such assets with respect to Barbados currency shall
be credited to a Revaluation Reserve Account and neither they nor the losses arising from any such
change shall be included in the computation of the annual profits and losses of the Bank.
(2) The losses arising from any such change shall be set off against any credit balance in the
Revaluation Reserve Account and, notwithstanding any other provisions of this Act, if such balance is
insufficient to cover such losses, the Government shall issue to the Bank non-negotiable, non-interest-
bearing securities to the extent of the deficiency.G/SCM/Q3/BRB/9
Page 254
1977-32
(3) Any credit balance in the Revaluation Reserve Account at the end of each financial year of
the Bank shall be applied first to the redemption on behalf of the Government of any outstanding
securities issued under subsection (2) and thereafter to the redemption of any outstanding securities
issued under section 7(4).
(4) If the credit balance remaining after such application as is referred to in subsection (3)
exceeds 5 per cent of the Bank's liabilities on account of currency issued and remaining outstanding as
at the end of the financial year, then subject to subsection (5), an amount equal to:
(a) One-fifth of that remaining balance; or
(b) five per cent of such liabilities;
whichever is the greater, shall be paid into the Consolidated Fund.
(5) If the credit balance does not exceed 5 per cent of the liabilities referred to in section (4), an
amount equal to the total sum of the balance shall be paid into the Consolidated Fund.
(6) No credits or debits shall be made to the Revaluation Reserve Account except in accordance
with this section.
PART VIII
Relations with Banks and other Financial Institutions
Opening accounts for banks and other financial institutions
31. The Bank may open accounts for, and accept deposits from, banks and other financial
institutions operating in Barbados under such terms and conditions as the Board determines.
Operations with account holders
32. The Bank may:
(a) Purchase from, sell to, discount and rediscount for, account holders of the Bank bills
of exchange and promissory notes drawn or made for bona fide commercial,
industrial, or agricultural purposes, bearing two or more good signatures and
maturing within 90 days from the date of their acquisition by the Bank;
Provided that bills of exchange and promissory notes drawn or made for the purpose
of financial seasonal agricultural operations or marketing of crops may mature within
270 days from the date of their acquisition;
(b) purchase from, sell to, discount and rediscount for, account holders of the Bank any
Treasury bills of the Government forming part of a public issue;
(c) grant to account holders of the Bank advances for periods not exceeding 180 days:
(i) Secured by:
(A) Instruments specified in paragraphs (a) and (b);G/SCM/Q3/BRB/9
Page 255
(B) warehouse warrants and documents of title issued in respect of staple
commodities or other goods duly insured;
Provided that the Bank shall determine the maximum percentage of advances in
relation to the current value of such commodities or goods;
(C) holdings of any assets which the Bank is permitted to buy, sell, or deal in
under paragraphs (a), (b), and (c) of section 27;
(D) securities issued or guaranteed by the Government, its institutions, agencies
and statutory boards, subject as provided in section 46; or
(ii) secured by such other assets, on terms and conditions which the Board prescribes.
Determination of bank rates
33. The Bank shall publicly announce its rates for discounts, rediscounts, advances, loans or
overdrafts and may establish different rates and ceilings for various classes of transactions or
maturities.
Inspection of banks and other financial institutions.
34.(1) The Bank may periodically or at its discretion cause an inspection to be made by any of its
officers of any bank and its books and accounts for the purpose of ascertaining the nature of its
business and the condition of its affairs.
1975-13
(2) On the recommendation of the Bank, the Minister may, by notice published in the Official
Gazette , extend the authority conferred on the Bank by subsection (1) to other financial institutions
specified in the notice in order to ascertain the nature of their businesses and the condition of their
affairs for the purpose of performing its functions under this Act.
(3) Any officer authorized under this section to inspect a bank or other financial institution may:
(a) Require any director or employee of any bank or other financial institution to furnish
such information as the Bank may consider necessary for the purpose of the
inspection; or
(b) require any such director, officer, or employee to produce for inspection any books,
records, or other documents in his possession containing or likely to contain any such
information.
(4) Any person who:
(a) Fails, refuses or neglects to comply with any requirement of an officer of the Bank
made under subsection (3); or
(b) in complying with any such requirement, furnishes any information or produces any
book, record or other document which he knows to be false in any material particular;
is guilty of an offence and liable on summary conviction to a fine of 500 dollars or to
imprisonment for six months or to both.G/SCM/Q3/BRB/9
Page 256
Required reserves of banks
35.(1) The Bank may by notice published in the Official Gazette and by written notice to each bank
at its principal place of business in Barbados prescribe the maintenance of required reserves against
deposit and other similar liabilities which may be specified for this purpose.
(2) The reserves prescribed under subsection (1) shall be maintained by way of cash holdings or
by way of deposits with the Bank in such proportion as the Bank prescribes.
(3) The Bank may prescribe different reserve ratios for different classes of deposit and other
similar liabilities and may prescribe the method of their computation:
Provided that:
(a) The Bank shall not require a bank to hold a total amount of reserves in excess of
20 per cent of the total deposit and other similar liabilities to which reserve ratios
have been made applicable; but when the monetary situation requires, the Bank may,
with the concurrence of the Minister, prescribe higher ratios appropriate to the
circumstances;
(b) the initial prescription of, or any increase in, the required reserve ratios shall be
effective only after at least 15 days notice thereof has been given;
(c) the Bank may determine that the requirements of this subsection may be met by
meeting the prescribed reserve ratios on the basis of averages of holdings over such
period as the Bank prescribes;
(d) the prescribed reserve ratios shall be uniform for all banks.
(4) The Bank may impose on any bank which fails to maintain required reserves in the
appropriate ratio prescribed under this section, a charge at an annual rate not exceeding twice the
highest rate fixed at the time of such failure, by the Bank under section 33 in respect of its operations.
(5) The charge to which subsection (4) refers may be imposed on the amount of the deficiency
for each day during which the deficiency continues.
Regulation of interest and credit
36.(1) The Bank may, with the approval of the Minister, prescribe by notice published in the Official
Gazette and by written notice to each bank at its principal place of business in Barbados:
(a) The methods of computation and maximum amounts of interest payable in respect of
deposit and other similar liabilities; and
(b) the permissible purposes, aggregate ceilings, maximum amounts beyond which the
Bank's approval is necessary, maximum maturities and maximum interest chargeable
and minimum cash margin or security required, in respect of:
(i) The making of advances, whether by loans or overdrafts, and investments;
(ii) the discounting of bills of exchange, promissory notes and other commercial
or financial papers;
(iii) the issuing of letters of credit;G/SCM/Q3/BRB/9
Page 257
(iv) the granting of acceptances and other forms of credit.
(2) With the approval of the Minister, subsection (1) may be made applicable by the Bank by
notice published in the Official Gazette and by written notice to any person having as a main object of
his business the extension of credit.
(3) The Bank may examine the accounts, books and papers of any person who it has reason to
suspect is extending or has extended credit in contravention of subsection (1) and the refusal to submit
such accounts, books and papers shall be prima facie evidence of such contravention.
(4) Notices issued under this section shall apply uniformly in Barbados and shall come into effect
on such date specified not earlier than 14 days after the date of issue, and the Bank in its notices may
differentiate between banks and other creditors of classes thereof in respect of the items set out in
subsection (1).
(5) Any bank which contravenes subsection (1) is liable to pay to the Bank for each such
contravention a charge not exceeding five hundred dollars for every day during which the
contravention continues.
(6) Any person to whom subsection (1) is made applicable pursuant to subsection (2) is guilty of
an offence if:
(a) He contravenes subsection (1); or
(b) he supplies to the Bank any information which he knows to be false in any material
particular; or
(c) he fails to furnish, any information required by the Bank to satisfy the Bank that he is
complying with subsection (1);
and is liable on summary conviction:
(i) In the case of an offence under paragraph (a), to a fine of 50 dollars for each
day during which the contravention continues; or
(ii) in the case of an offence under paragraph (b) or (c) to a fine of 500 dollars or
to imprisonment for three months or to both.
Local assets ratio
37. A bank shall maintain assets consisting of claims payable in the currency of Barbados and
other assets situate in Barbados in such minimum proportions of its deposit and similar liabilities
payable in Barbados as the Bank may prescribe.
Foreign working balances
38. The Bank may prescribe the maximum amount of the working balances which banks and
other financial institutions may hold in foreign currencies generally or in any specified currency or
currencies.G/SCM/Q3/BRB/9
Page 258
Clearing house
39. The Bank may at an appropriate time and in conjunction with banks and other financial
institutions organize a clearing house at such place or places as may be desirable.
Insurance and guarantee schemes. 1977-32
40.(1) The Bank may, with the approval of the Minister, administer or participate in schemes for the
purpose of:
(a) Insuring bank deposits;
(b) providing export credit insurance and guarantee; and
(c) providing guarantees for credit extended by banks and other financial institutions.
(2) Subject to subsection (3), the Bank may, with the approval of the Minister, subscribe to, hold,
and sell, shares of a corporation organized with the approval or under the authority of the Government
for any of the purposes specified in subsection (1).
(3) The total value of the Bank's shareholding in corporations to which subsection (2) refers shall
not exceed 50 per cent of the aggregate amount of the paid-up capital and General Reserve of the
Bank.
(4) Subject to subsection (5), the Bank may, with the approval of the Minister establish special
funds in order to facilitate the administration of the schemes specified in subsection (1) and may make
annual contributions thereto out of its profits in accordance with paragraph (b) of section 9(2).
(5) The Bank may, with the approval of the Minister, advance to any such special fund such sums
as may be required during a financial year and may recover such sums advanced from its annual
contribution to the fund for that year.
(6) If the Bank ceases to administer any of the schemes specified in subsection (1), the special
fund relating to the particular scheme which the Bank has ceased to administer, may be liquidated in
such manner as the Bank, with the approval of the Minister, determines.
Special Credit Trust
41. There shall be established a Special Credit Trust to be constituted by amounts from time to
time transferred by the Bank pursuant to section 9, and by any accruals thereto, whether through
operations or otherwise, to be held in trust and administered by the Bank, as sole trustee, to the end of
facilitating:
1981-32. (a) The purchase, holding, guarantee, or sale of debentures, bonds or other similar debt
obligations, having a maturity not in excess of ten years from the date of acquisition
by the Trust, issued and offered publicly by such financial institutions not within the
regulatory jurisdiction of the Bank as the Board may designate;
1981-32. (b) the holding of equity in statutory and private corporations, as the Board may with the
approval of the Minister determine.G/SCM/Q3/BRB/9
Page 259
PART IX
Relations with the Government
Bank to be banker, fiscal agent and depositary to the Government
42.(1) The Bank shall be the banker and fiscal agent of the Government and shall be the depositary
of Government funds:
(a) The Bank may act in such capacities to Government institutions, agencies and
statutory boards; and
(b) the Government may maintain working balances with, and generally use the services
of, other banks;
in such cases, for such periods of time, and on such other terms and conditions as may be
agreed between the Minister and the Bank.
(2) The Government, through the Minister, may request the Bank to render advice and to furnish
reports on matters relating to the purposes of the Bank.
(3) It shall be the duty of the Bank to inform and advise the Government, through the Minister,
concerning any matter which in the opinion of the Bank is likely to affect the achievement of its
purposes.
Depositary and fiscal agency of international financial institutions
43. The Bank shall, upon designation by the Minister, serve as the depositary and fiscal agency
of, and the institution through which dealings shall be conducted with international financial
institutions of which Barbados is a member.
Credit to the Government, its institutions, agencies and statutory boards
44. Except in accordance with sections 32(b), 32(c)(i)(D), 45 and 46, the Bank shall not, directly
or indirectly, make advances to, or acquire the notes, bills, securities or other evidences of debt of, or
guaranteed by, the Government, its institutions, agencies and statutory boards; but this section shall
not operate to prevent the acquisition by the Bank of securities transferred to it by the Government in
accordance with section 7 or 30.
Advances to the Government
45.(1) The Bank may make temporary advances, subject to repayment within three months
following the end of the financial year in which they were granted, at such rates of interest as it may
determine:
(a) To the Government;
(b) with the approval of the Minister, to Government institutions, agencies and statutory
boards.
(2) Without limiting the generality of subsection (1), the Bank is expressly authorized to make
advances to the Government, on such terms and conditions as may be agreed, in respect of
subscriptions and other payments resulting from or incidental to, the membership of Barbados in any
international bank or international monetary authority established under governmental auspices, theG/SCM/Q3/BRB/9
Page 260
participation of Barbados in any account thereof, and any transactions and operations undertaken in
connection therewith.
Acquisition of evidence and indebtedness issued by the Government
46. The Bank may purchase, hold, and sell notes, bills, securities or other evidences of
indebtedness issued or guaranteed by the Government, its institutions, agencies and statutory boards,
which were publicly offered for sale or form part of an issue which is being made to the public at the
time of acquisition by the Bank.
Consultation on budget and credit operations
47. The Bank shall be consulted by:
(a) The Minister on the total amount of credit to be extended by the Bank to the
Government during the Government's financial year;
(b) the Government, its institutions and agencies, and statutory boards at any time when
either domestic or foreign credit operations are contemplated and in the event that, in
the opinion of the Bank, such operations individually or collectively appear to be of a
magnitude inappropriate to prevailing economic conditions, the Bank shall report to
the Minister, drawing attention to the situation and recommending measures to
remedy the situation.
Reports and recommendations on bank credit to the Government
48. Whenever the total amount of credit being extended by the Bank to the Government, its
institutions, agencies and statutory boards by advances under section 45, the acquisition of evidences
of indebtedness under sections 32(b) and 46, and the acceptance of securities as collateral under
section 32(c)(i)(D) threaten either:
(a) To exceed the amount agreed under section 47(a); or
(b) to endanger monetary stability;
the Bank shall submit a report to the Minister drawing attention to the situation, analysing the
causes which have led thereto, and recommending measures which it deems necessary to
forestall or otherwise remedy the situation.
Orders
49.(1) If, after consultation with the Bank, the Minister is of the opinion that the policies being
pursued by the Bank are not adequate for, or conducive to, the achievement of the purposes of the
Bank as set out in section 5, the Minister may issue a written order to the Bank determining the policy
to be adopted by the Bank, and the Bank shall thereupon give effect to that policy while the order
remains in operation.
(2) The order acknowledging the Government's assumption of responsibility for the policy shall
be published forthwith in the Official Gazette .
(3) The Minister shall cause to be laid before Parliament, as soon as may be after the Minister has
informed the Bank of the policy determined, a copy of the order determining the policy, and
statements by the Minister and the Bank in respect of the matter which occasioned the issuance of the
order.G/SCM/Q3/BRB/9
Page 261
PART X
Accounts
Financial year
50. The financial year of the Bank shall coincide with the calendar year.
Audit
51. The accounts of the Bank shall be audited at least once every financial year by an auditor
appointed by the Board with the approval of the Minister.
Accounts and operations
52.(1) The Bank shall, as soon as may be after the end of every month, make up a statement of the
condition of the Bank as at the close of business on the last business day of each month, and shall
transmit a copy thereof to the Minister, who shall cause it to be published in the Official Gazette .
(2) Within three months of the close of each financial year or such longer period as the Minister
may allow, the Board shall:
(a) Transmit to the Minister a copy of its annual accounts certified by the auditor;
(b) submit to the Minister a report on its operations during the year.
(3) The Minister shall lay a copy of the annual accounts of the Bank, together with the certificate
of the auditor and the report on the Bank's operations for the year, before Parliament as soon as
practicable after he has received such accounts, certificate, and report.
(4) The Bank shall publish the said report after it has been laid before Parliament by the Minister.
PART XI
Miscellaneous
Reports and announcements
53.(1) The Bank may issue such reports and publications as the Board considers of public interest.
(2) The Bank may require banks, other financial institutions and persons who may be subject to
the provisions of this Act to furnish to the Bank such information and data as are necessary to enable
it to perform its functions under this Act and may publish such in any form it may determine:
Provided that individual transactions shall not be identified in the publication.
(3) Any person who refuses or fails within a reasonable time to furnish to the Bank any
information or data requested by it under subsection (2) is guilty of an offence and liable on summary
conviction to a fine of 500 dollars.
Advances to officers and employees
54. The Bank may, subject to terms and conditions to be prescribed by the Board, grant advances
to any of its officers or employees:G/SCM/Q3/BRB/9
Page 262
(a) For the purchase, construction or repair of one residential house for his personal use
against the security of the said house; and
(b) for other purposes in an amount not to exceed during the time they are outstanding
the annual remuneration received by the borrower from the Bank.
Restricted titles. Cap. 322
55. Except with the written consent of the Minister on the recommendation of the Bank, no bank
or other financial institution shall hereafter be licensed under the Banking Act by a name which
includes any of the words "Central", "National", "Barbados", "Reserve" or "State" or their equivalent
in any other language.
Exemption. 1982-22
56. The Bank is exempt from:
(a) The payment of income tax and any other tax imposed on the income or profits of
persons;
(b) the payment of stamp duty on any document resulting from transactions with persons
resident outside Barbados; and
Cap. 322. (c) the requirements of the Banking Act .
Liquidation of Bank
57. The Bank may not be liquidated except by an Act.
Initial expenses
58.(1) The Minister may advance to the Bank such sums as may be necessary to enable the Bank to
meet any deficit or expected deficit in its income in relation to its expenditure during the period
immediately following its establishment until the appointed day or such later date as may be agreed
upon between the Bank and the Minister.
(2) Advances under subsection (1) are hereby charged on and are payable out of the Consolidated
Fund.
(3) Such advances shall:
(a) Bear interest at such rate as may be agreed upon between the Bank and the Minister;
(b) be repaid, commencing with the close of the financial year in which the Bank's
accounts first show a net profit, in such manner as may be agreed upon between the
Bank and the Minister.
Residence. 1984-19
59.(1) The Governor is entitled to occupy a fully furnished residence without payment of rent.G/SCM/Q3/BRB/9
Page 263
Cap. 73
(2) With effect from 1 January 1984, the value of the residence mentioned in subsection (1) shall
not be included in calculating the assessable income of the person referred to in that subsection for the
purposes of the Income Tax Act .G/SCM/Q3/BRB/9
Page 264
CRIMINAL LAW (ARRESTABLE OFFENCES) ACT, 1992-17
Chapter Enactment Amendment
In section 136 the words "an offence" are
substituted for "a misdemeanour".
In section 139 the words "an offence" are
substituted for "felony".
In subsection (1) of section 143 the words
"felony or" are repealed.
311 The Insurance Corporation of
Barbados ActIn paragraph (b) of subsection (1) section 19 the
words "an arrestable offence" are substituted for
"a felony".
315 The Pawnbrokers Act In paragraph (b) of section 26 the word "stealing"
is substituted for "feloniously taking".
322A The Barbados National Bank Act In paragraph (b) of subsection (1) of section 11
the words "an arrestable offence" are substituted
for "a felony".
323C The Central Bank of Barbados Act In paragraph (b) of subsection (1) of section 13
the words "an arrestable offence" are substituted
for "a felony".
374 The Veterinary Surgeons Act In subsection (1) of section 10 the words
"arrestable offence" are substituted for "felony".
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