There are many benefits associated with a Barbados IBC including a special tax rate of between 0.25 per cent to 2.5 per cent for registered IBCs depending on their level of profit. As a country with income tax, Barbados has established an extensive tax treaty network with over 20 countries including the US, UK, China and Canada. Depending on the particular circumstances, a friendly regime for international businesses with double tax treaty agreements may prove more efficient than jurisdictions with zero tax rates (like Cayman and BVI) that cannot access a double tax treaty network.
IBCs also avoid paying withholding tax on dividends, interest and other payments made to non-residents or to another IBC and there are no capital gains tax or estate duties. These and other benefits are guaranteed for 15 years.
A Barbados IBC must meet the following requirements:
- Financially capable of conducting its business
- Does not conduct business under any other offshore incentive legislation
- Does not buy or sell goods and services in Barbados
Harneys Services regularly assists clients with the incorporation and registration of Barbados IBCs. In addition we deliver a full complement of corporate and fiduciary services in Barbados, some of which include:
- Company secretarial services
- Director services
- Registered office
- Board and Shareholder meeting and preparation of minutes