Barbados Government Approves Small Business Support Measures

by Amanda Banks, Tax-news.com, London

21 May 2001

The Barbadian government has recently authorised a package of support measures specifically for small business owners as part of its initiative to assist the growth of the small business sector.

According to Marina Taitt, Senior Business Development Officer in the Business Development Unit at the Ministry of Commerce, Consumer Affairs and Business Development, the initiative will give entrepreneurs the opportunity to bring a higher level of efficiency and corporate sophistication to their businesses through the use of the technical assistance and fiscal incentives offered in the act.

Benefits include: a refund of 75 per cent of the cost of incorporation or Bds$1,700 (whichever is lower); payment of corporation tax at the rate of 25 per cent on the profits of the business; exemption from import duty on plant and equipment sourced for the business; and exemption from withholding tax on dividends and on interest earned on investments or any funds approved for investment in small businesses.

Business persons will also be exempted from the mandatory payment of stamp duty on all documents related to the business. A deduction of corporation tax totalling 20 per cent of the expenditure incurred in the use of technology, market research and any other activity directly related to the development of the business would also be provided.

Recommended