Barbados’ tax regime is compliant according to a recent
assessment conducted by the Organisation for Economic Cooperation
and Development's (OECD) Forum on Harmful Tax Practices (FHTP).
The Forum concluded that the tax laws of Barbados and 10 other
jurisdictions are not harmful to other countries.
Zero or low tax countries that do not meet the
‘substantial activities requirement’ (SAR) will be
considered harmful tax regimes. The SAR seeks to realign the
taxation of profits with the core activities that generate
them. For certain highly mobile business activity other than
IP, the main income generating activities must be performed by
qualified employees, reflect an adequate amount of operating
expenditure in the domicile and the country’s ability to
identify and enforce noncompliance. Generally, such activities
include headquarters, distribution centres, service centres,
financing, leasing, fund management, banking, insurance, shipping,
holding companies and
