BARBADOS HAS INTRODUCED NEW ECONOMIC SUBSTANCE REQUIREMENTS – THE END OF THE IBC

On 10 February, International Investment says that this effectively brings down the so-called ‘ring fence’ that kept separate tax rates for local and international business companies.  As of January, the concept of an “International Business Company” in Barbados no longer exists: for tax purposes all companies are now Regular Barbados Companies, regardless of where their customers are and if they are foreign owned.  A new law requires business companies that are resident in Barbados for tax purposes and which conduct certain types of activity to have adequate substance in the jurisdiction.  The new requirements are in response to EU and OECD initiatives to prevent harmful tax practices and profit shifting, and mirror developments in many other offshore jurisdictions.

https://www.internationalinvestment.net/news/4010424/barbado-economic-substance-rules-brings-end-separate-tax-rates

Author: raytodd2017

Chartered Legal Executive and former senior manager with Isle of Man Customs and Excise, where I was (amongst other things) Sanctions Officer (for UN/EU sanctions), Export Licensing Officer and Manager of the Legal-Library & Collectorate Support Section

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