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Barbados 2013 Budget Proposes Temporary Tax on Banking Assets 

Global Tax Adviser

 

August 20, 2013

 

Rob Davis
Toronto, Transfer Pricing

 

Barbados has proposed several changes to its taxation system in its 2013 budget, which was delivered on August 13, 2013. Among other changes, the budget proposes to allow international business companies to obtain multi-year licences, introduce five-year residence permits to individuals who own substantial property in Barbados and impose a temporary 0.2% tax on the assets of commercial banks.

Tax on banking assets
The budget proposes to apply a temporary 0.2% tax on the assets of commercial banks effective September 2013. The government says that this measure is not expected to exceed 19 months.

 

Multi-year international business company licences
The budget proposes to allow international business companies to obtain multi-year licences from Barbados' International Business Unit for a maximum of three years, effective January 1, 2014. Assumedly, International Business Companies (IBCs) and Societies with Restricted Liability (SRLs) will be eligible for the new multi-year licences, which are intended to ease the administrative burden of renewing annually. The International Corporate and Trust Providers Act will become fully operational with the coming into force of the Regulations.

 

Special Entry and Reside Permit
The budget proposes to introduce a five-year "Special Entry and Reside Permit" to replace the current "Special Entry Permit", effective September 1, 2013. The new permit will be available to foreign individuals with special skills needed in the country and foreign individuals who own substantial property in Barbados (valued at US$2 million or more) and their dependents. To qualify, an investment must have been purchased with funds sourced outside Barbados and it must not be subject to any mortgage. Individuals holding a new permit will be issued with a Barbados Identification card (similar to work permit holders) and will be able to obtain Barbados drivers' licences and otherwise conduct business in Barbados.

 

For more information, contact your KPMG adviser.

 

 

 

 

 

Information is current to August 20, 2013. The information contained in this publication is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavour to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act upon such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's National Tax Centre at 416.777.8500

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