Latest insurance tax changes in Barbados

Below is a summary of the latest Insurance Tax changes:

Tax Rate

Barbados – Pandemic Contribution Levy introduced from July 1st, 2022

Tax types

• Pandemic contribution levy

Products

• Multiple Products Effected - See Summary

Summary

The Barbados Revenue Authority has introduced a temporary Pandemic Contribution Levy on licensed life and general insurance companies to spread the burden of the fiscal impact of the Covid-19 pandemic.  

Effective from the 1st of July 2022, licensed insurance companies that had an annual net income of $5 million or more in 2020 and/or 2021 will be subject to the levy. The applicable rate of the levy is 15% per annum, which is calculated on the net income recorded in the company’s financial statements for both the fiscal years 2020 and 2021. 

Starting on the 15th of July, companies will be required to pay 3.75% of their net income on or before the 15th day of the month for 8 consecutive months. The payments for July, August, September, and October are in respect of the fiscal year 2020; while the rest are for the fiscal year of 2021.

Payments to the Barbados Revenue Authority can be made by cash, cheque, debit card, credit card, or via online payment services.  

For more information please visit Avalara for Insurance

Read our whitepaper: The Digitalisation of the Insurance Tax Landscape

What’s inside:

• The race to digitalisation in the insurance industry
• Data digitisation and the impact on IPT
• Current state of IPT across the world
• The outlook for captive insurers
• IPT compliance under the microscope
• The boom in insurtechs

Get the latest IPT news and tax rate changes sent directly to your inbox.