The budget proposes to remove Property Transfer Tax when shares are transferred during a corporate reorganization of a group of companies and with no change of beneficial ownership, effective August 1, 2012.
Reduced International Business Companies tax rate
The budget proposes to reduce the corporate tax rate for International Business Companies (IBCs), Societies with Restricted Liability (SRLs) and International Banks. The rate will drop to 0.50% (from 1.00%) in 2012 and to 0.25% in 2013.
Expanded Foreign Currency Earnings Credit
The budget expands the Foreign Currency Earnings Credit to include exploration, extraction and other mining, oil and gas activities, licensing and sub-licensing of intellectual property and shipping services.
KPMG Barbados notes that this measure is intended to provide flexibility in corporate structures by promoting the use of regular Barbados companies to carry on international business from Barbados. Regular Barbados companies will be able to achieve an effective tax rate of 1.75%.
Permits for high net worth individuals
The budget proposes special entry permits to assist high net worth individuals and other property owners who wish to invest in Barbados. To qualify for a permit, individuals that have at least $10 million in net assets for a minimum of five years must submit copies of their income tax returns and audited statements of net assets to the tax authorities.
For more information, contact your KPMG adviser.