The Barbados Ministry of Finance, Economic Affairs and Investment outlined several tax proposals in the 2025 budget, including:
- Income tax: Elimination and reduction of late filing fees, capped interest and penalties, and a grace period for payments
- National insurance and social security (NIS) contributions: Interest capped at 25% and full relief for timely settlement of outstanding contributions
- Income tax thresholds: Increase for pensioners (to $50,000*) and individuals (to $40,000) from April 1, 2025
- Meal allowances: Non-taxable allowances for hotel workers from April 1, 2025
- Property transfer tax: Removal for deeds of gift to children and dependents for land under 1 acre
- Commercial kitchen equipment: Removal of duties and VAT from April 1, 2025 through March 31, 2027
- Food and beverage concessions: Extension from April 1, 2025
- Excise tax on salty snacks: 20% excise tax from June 1, 2025
- VAT removal on select food items: Effective April 1, 2025
Read a prepared by the 乐鱼(Leyu)体育官网 member firm in Barbados
*$=Barbadian dollar