Editing Economy of Barbados (section)

==== General ====
In 1997 Barbados implemented a general taxation that covers most items. Known as the [[Value added tax|Value-Added Tax]] ("VAT") it covers almost all items at a 17.5% tax rate and an 8.75% for hotel accommodations. Exported goods and services, prescription drugs and a few other specific items are zero rated under the legislation. The VAT replaced several other taxes such as: the Consumption Tax, Surcharge, Excise Tax and an Environmental Levy. People operating under Barbados' VAT regime must be registered for VAT and from 1 December 2010, the threshold for VAT registration has been BBD$80,000 (previously BBD$60,000).

The island continues to wean off of taxes outside of the VAT system. In 2002 the Barbados government increased the level of people in Barbados who are exempt from having to pay taxes on their homes. This has steadily grown with the island heading for a possible rate of 0% taxation in all other areas.

The government has also toyed with the idea of making retirement savings as tax exempt, to encourage Barbadians to spend less on goods and to encourage Barbadians to save more income as they once used to.<ref>{{cite news | url=http://www.barbadosadvocate.com/NewViewNewsleft.cfm?Record=24347 |title=THE STARK REALITY |access-date=15 October 2009 |first=Marita |last=Greenidge |date=6 February 2006 |work=[[Barbados Advocate]] |archive-url=https://web.archive.org/web/20060214081127/http://www.barbadosadvocate.com/NewViewNewsleft.cfm?Record=24347 |archive-date=14 February 2006 }}</ref>

Building and land owners are liable to land tax on the market value of their property at rates currently ranging from 0.1 per cent (for valuations from BBD$150,000) to 0.75 per cent (BBD$1,000,000) on all properties (revalued on a three-year basis) and there are approximately 115,000 parcels listed. Exemptions include crown land; University of the West Indies; religious and benevolent organizations (of which there are many thousands); cemeteries; etc.<ref>{{cite web|title=Barbados Government Land Tax Act, Cap 78A|url=http://www.barbadostoday.bb/2014/11/08/raise-your-land-taxes/|publisher=Barbados Government|access-date=2014-11-08|archive-date=30 April 2016|archive-url=https://web.archive.org/web/20160430124645/http://www.barbadostoday.bb/2014/11/08/raise-your-land-taxes/|url-status=dead}}</ref>

{| class="wikitable"
! style="font-style: italic;" | Annual Land Tax<br>Collections: 
! style="text-align: right;" | Residential 
! style="text-align: right;" | Non residential 
! style="text-align: right;" | Land only 
| style="font-weight: bold;" | Total (BBD$ million) 
|-
! style="text-align: right;" | 2008 
| style="text-align: right;" | 37.4 
| style="text-align: right;" | 45.4 
| style="text-align: right;" | 27.4 
| style="text-align: right; font-weight: bold;" | 110.2 
|-
! style="text-align: right;" | 2009 
| style="text-align: right;" | 36.9 
| style="text-align: right;" | 46.3 
| style="text-align: right;" | 28.1 
| style="text-align: right; font-weight: bold;" | 111.3 
|-
! style="text-align: right;" | 2010 
| style="text-align: right;" | 39.4 
| style="text-align: right;" | 48.7 
| style="text-align: right;" | 29.4 
| style="text-align: right; font-weight: bold;" | 117.5 
|-
! style="text-align: right;" | 2011 
| style="text-align: right;" | 41.8 
| style="text-align: right;" | 45.5 
| style="text-align: right;" | 31.7 
| style="text-align: right; font-weight: bold;" | 119.0 
|-
! style="text-align: right;" | 2012 
| style="text-align: right;" | 43.8 
| style="text-align: right;" | 41.5 
| style="text-align: right;" | 34.6 
| style="text-align: right; font-weight: bold;" | 119.9 
|}

Personal income tax was lowered from 20% to 17.5% in 2012 and applied on income of less than BBD$30,000 with a rate of 35% apply on income over BBD$30,000 and individuals who are both resident and domiciled in Barbados are taxed on their worldwide income. Generally, persons paying salaries or wages or other emoluments must withhold tax from remuneration paid to employees (PAYE). Every individual between the ages of 16 and 65, who is employed in Barbados must be insured under the National Insurance and Social Security Act and contributions are determined as a percentage of insurable earnings up to a maximum of $4,090 per month or $944 per week up to 13.5% (6.5% from employee and 6.5% from employer).

A new tax, called the Municipal Solid Waste Tax, was introduced and took effective in 2014.

Tax on Income, Profits and Capital Gains include: Income Tax, Corporate Tax, Withholding Tax, and Insurance Premium Tax.

Tax on Goods and Services include: Consumption Tax, Excise Taxes, Value Added Tax, Hotel & Restaurant Tax, Other Taxes on Goods and Services (includes Licenses, Motor Vehicle Tax, and Selective Taxes on Services).

Corporation tax rates charge 'Regular' companies 25% and 'Small' companies 15%. Employers must remit tax withheld from employees' emoluments to the Department of Inland Revenue by the 15th day of the next month after they deducted the tax.

Stamp duty tax is still levied on sale of shares of companies listed on the Barbados Stock Exchange; on sale of real estate, leases and shares in public companies; and on mortgages.