When is Corporation Tax due
The timing for companies to file returns and to pay corporation tax on their profits is determined by their fiscal year.
Filing returns
(a) Companies with a year end between January 1st and September 30th are required to file their returns by March 15th of the following year.
- b) Companies with a year end between October 1st and December 31st are required to file by June 15th of the following year.
Prepayment of Tax
Every company whose fiscal period ends at any time during January 1st to September 30th in any year (both dates inclusive) shall pay 50% of the tax paid or payable on the total income declared for the previous income year not later than September 15th of the current year. Any balance due is payable on filing on March 15th.
Companies whose fiscal period ends at any time during the period October 1st to December 31st (both dates inclusive) must prepay as follows:
- 50% by December 15
- 50% by March 15 and
- any balance on filing on June 15.
The prepayment is calculated on the tax paid or payable on the income declared in the previous year.
Financial Statement Requirement when filing
Supporting documents are to be submitted when filing tax returns for all companies. Financial statements are necessary supporting documents.
Companies who did not carry on business/ have not filed CT Returns
Where a company has not carried on business, at the time of registration, the company is required to upload an Affidavit declaring that the said company has not carried on business for the income years prior to 2017.
Thereafter, once registration is completed the company can proceed with filing the Corporation Tax returns for income year 2017 to present via TAMIS.
If the company is no longer operational, the taxpayer should seek to dissolve the company by filing Articles of Dissolution and accompanying documentation with the Registrar of Companies. Companies must however be in a state of “good standing”, having complied with all filing requirements of the Companies Act, Cap. 308 of the Laws of Barbados for a regular dissolution to occur.
Companies that are not in “good standing” (i.e. they are in breach of various provisions of the Companies Act) are liable to be “struck off” from the Companies Register. For more information on the striking off process, companies should email caipo.deregister@barbados.gov.bb.
Companies who carried on business but did not file CT Returns
A company that has carried on business is required to comply with the ordinary provisions of the Income Tax Act, Cap. 73 of the Laws of Barbados including the requirement to file Corporation Tax returns for all income years from the date of incorporation Via TAMIS.
For corporation tax returns prior to income year 2010, please prepare manual returns, attach and upload same along with the 2010 submission. All payments should be made under income year 2010.
Amnesty for Companies
Reach out to the Authority via settletax@bra.gov.bb to enter into a payment plan.