Barbados Corporate Income Tax
Detailed corporate income tax rates and rules for Barbados in 2026.
Barbados reformed its corporate tax system in 2019, replacing the previous dual-rate system with a unified graduated rate structure. Rates range from 1% on the first BBD 1 million of taxable income to 5.5% on income exceeding BBD 30 million. This makes Barbados one of the most competitive corporate tax jurisdictions in the Caribbean. International business companies (formerly IBCs) are now taxed under the same regime. Companies must make quarterly advance tax payments.
Standard Rate
5.5%
Small Business Rate
1%
How Barbados Corporate Tax compares
Barbados’s corporate tax rate of 5.5% is the 192nd highest of 203 countries TaxAtlas tracks, below the global average of 22.2% and North America’s regional average of 22.3%.
