Companies incorporated in Barbados must have a registered office situated in the island and maintain such statutory and accounting records as are prescribed by the Companies Act and the Income Tax Act.

Contact
Corporate Affairs and Intellectual Property Office
Keith Bourne Complex
Belmont Road
St. Michael
Barbados
Tel: (246) 436-4818/9
Fax: (246) 437-3072
E-mail: caipo@caribsurf.com Website: www.caipo.org [ Back to Top ]

Application for a work permit

The general requirement for granting work permitsis that the person must be able to be employed in a job that there is no Barbadian available to do. Secondly, that the remuneration of the individual would be such that they do not become a burden on the state.

The requirement for work permit includes:

1. C1, C-2 application form duly completed in duplicate
2. Medical form completed by Medical Practitioner
3. Four passport size photographs
4. Application fee of BD $100 (US $50)
5. Two character references on the applicant
6. A police certificate of character from the applicant's place of residence (or a sworn affidavit in lieu thereof if the applicant is from the United Kingdom)
7. Documentary evidence of applicant's qualification (notarized copies acceptable)
8. A cover letter setting out nature of the business in which the applicant will be engaged.
9. In the case where the applicant is hoping to set up business in Barbados, clear evidence of the quantum of his/her investment must be produced (e.g. Bank Transfer Statements)
10. A copy of the Certificate of Registration/Incorporation of the Company should also be produced.
11. In the case where the applicant was previously in Barbados on work permit, an income tax clearance certificate

Contact:

Immigration Department
Careenage House
The Wharf
Bridgetown, Barbados
Tel: (246) 426-1011
(246) 436-4811
(246) 426-0932
Fax (246) 426-9912
E-mail: richard_deane@barbadosbusiness.gov.bb or margaret_innis@barbadosbusiness.gov.bb [ Back to Top ]

Application for Tax Clearance Certificates

Generally income tax clearance certificates are issued on request to persons requesting immigrant status/work permit renewals.

The average processing time of an application is (1) to (2) weeks.

The Technical Division or the Inland Revenue Department is responsible for processing tax clearance applications and issuing tax clearance certificates.

Requirements for an income tax clearance certificate includes:

1. Duly completed (TC/B) Application for Clearance.
2. Applicant's local address/telephone number.
3. A valid passport which must be produced as evidence of applicant's:
   • Passport Number
   • Date of Arrival in Barbados
   • Date of Birth
   • Nationality

Tax Concessions for Specially Qualified Persons

Under the Exempt Insurance Act, Offshore Banking Act and the International Business Companies Act, where that company requires the services of specially qualified individuals in order to carry out its business effectively from within Barbados, is unable to acquire those services in Barbados and it is unable to retain those services from outside Barbados without special tax concessions, the Minister of Finance may grant a tax concession which allows up to 35% of those persons' salaries or fees to be exempt from income tax in Barbados and paid in foreign currency inside or outside of Barbados.

For further information, contact:

Ministry of Finance
Government Headquarters
Bay Street
St. Michael, Barbados
Tel. No. (246) 436-6435
Fax.No. (246) 228-1641
Email: june_chandler@barbadosbusiness.gov.bb or deidre_brathwaithe@barbadosbusiness.gov.bb [ Back to Top ]

Commercial Development

Land in Barbados is zoned for specific usage, and prior permission to build or for a change of use must be obtained from the Town and Country Planning Department.

In making a formal application for a commercial development, the developer must submit:

1. One copy of an application form.
2. Six copies each of the following plans drawn to approved scales.
3. Location plans (1:2500)
4. Site Plans (1:2500)
5. Floor Plans (1:2500)
6. A copy of sworn surveyor's plot for the land to be developed.
7. An application fee of two hundred and fifty dollars ($250.00).

Location Plan

A location plan must indicate the exact location of the site on which the building is to be erected. It must show the nearest identifiable landmark. All roads on the location plan and any landmarks must be named for the purposes of identification. This plan must be properly drawn and the appropriate distance between the site and the landmark or road junction shown.

Site Plan

The site plan shows the shape and dimensions of the land on which the building will be built.

Floor Plan

Floor plans show the size of the overall building, the layout of all rooms within the building and their dimensions. This plan should also show the location and size of all windows and door openings. Rooms must be named to indicate their usage.

Elevation Plan

This plan shows what the building will look like when viewed from any given side. Two elevations are required, usually for the front of the building and any other side.

Public Document

Under the Town and Country Planning Act, Cap 240, the Chief Town Planner make available to the public for inspection information pertaining to an application. The inspection information is contained in a statutory register and includes:

1. Application number
2. Date the application was submitted
3. Name and address of applicant
4. Type of development
5. Location
6. Consultations
7. Decisions
8. Decisions on appeal
9. Certificates issued

Basic Customs Requirements

Entry of Goods

Goods imported into Barbados are required to be "entered" whether these goods are imported via the Bridgetown Port, the Grantley Adams International Airport or the General Post Office.

"Entering" of goods mainly entails the submission to the Customs Department of a completed goods declaration and the payment of the full duties and taxes, where applicable.

One of the important documents required for the entry of the goods is a Commercial Invoice issued by the supplier. The standard format accepted is the Caribbean Common Market (CARICOM) commercial invoice. However if the importation specified on the prescribed CARICOM invoice appears on another format, then such format would be accepted. The Department would also accept a Commercial invoice showing a summary of goods, once it is accompanied by a detailed supplier's invoice. The invoice showing a summary of the goods, once it is accompanied by a detailed supplier's invoice. The invoice should give, among other specifications, an accurate description, measurement, values, country of origin of the other goods, together with a declaration from the supplier that the information stated is true and correct. The carrier's bill of lading or airway bill is also required.

At the time of clearance of the goods a Barbados Customs Goods Declaration Form (C63) along with a declaration of Value Form (C60) for goods of a Customs value $2,500.00 and over. The World Trade Organisation (WTO) Valuation Code is in operation in Barbados.[ Back to Top ]

Duties and taxes

Import duties and taxes must be paid or covered by acceptable surety before the goods are released from the Port of Entry. Rates of duty range from 0% to 20% of the cost. Insurance and Freight (CIF) Value. There are some exceptions to these rates which include 40% for specified agricultural products, 60% for jewellery, 50% for watches and 455% for motor cars. Rates can be obtained from the Barbados Customs Tariff which is based on the Harmonised Commodity Description and Coding System (HS). The Tariff is obtainable from the Government Printing Department. The HS is now applied by over 150 countries as the basis for their tariff and trade statistics.

Imported goods are subject to an Environmental levy at the rate of 1% for most goods. A limited number of commodities carry individual, specific rates.

With the reform of indirect taxation in progress effective from 1st January 1997, imports became subject to 15% Value Added Tax. Some goods are zero-rated. Value Added Tax replaces a number of taxes that were previously in existence.

An excise tax is in place for four categories of goods namely, motor vehicles, tobacco products, alcoholic beverages and petroleum products. These rates appear in the Second Schedule of the Excise Tax Act and are obtainable from the Customs Department.

An example of how import duties and taxes are computed follows:

One (1) ctn Toasters (Hs 8516.72) customs Value $100.00
Import Duty 20% of Customs Value = 20.00
Environmental Levy 1% of Customs Value = 1.00
Value Added tax 15% of Customs Value
plus sum of duties and taxes = 18.15
Total Duties and taxes = 39.15
[ Back to Top ]

Licenced Clearing Agents

Although importers can legally enter goods on their own behalf if it is normal to recommend the use of Licenced Clearing Agents (Customs Brokers) especially if importers are not familiar with Customs procedures. A list of Clearing Agents is posted at Customs offices and can also be found in the yellow pages of the Barbados Telephone Directory. [ Back to Top ]

Entry processing

Entry processing in Barbados is computerized using the Automated System for Customs Data (ASYCUDA) programme. The standard is to return entries to importers/clearing agents within three (3) working days. Permission may be granted to take delivery of goods pending the payment of duties and/or other taxes once a Bond, guaranteed by a commercial bank or insurance company, is executed. This method is known as the Accounts Holders' Module and allows importers to take delivery of goods after processing of the relevant entry. Duties and taxes must however be paid within ten (10) days. [ Back to Top ]

Restricted Goods

A few items are still on the Import Licence Schedule (Miscellaneous Controls Act. 329). When goods appear on the schedule, Import Licences must be obtained before the goods are imported into Barbados. These goods include motor cars, agricultural products, non-alcoholic beverages and washing preparations such as detergents.

Phytosanitary Certificates must accompany plant and plant material. Checks can be made with the Plant Quarantine Division of the Ministry of Agriculture.

Overseas Health Certificates issued by the relevant national authority are required for meat and meat products before they are imported; an Import Permit must also be issued by the Veterinary Division of the Ministry of Agriculture.

• specified controlled and psychotropic drugs are subject to licences obtainable from the Barbados Drug Service of the Ministry of Health.
• pesticides are only allowed if a licence is obtained from the Pesticide Control Board, Ministry of Agriculture.
• firearms, ammunition and explosives must not be imported unless permission is granted by the Commissioner of Police.
• specified wireless equipment is subject to licence issued by the Telecommunications Division.

Mandatory Standards administered by the Barbados National Standards Institution (BNSI) are in place for a number of commodities. [ Back to Top ]

Duty Free Concessions

Duty free concessions are available on specified goods to entrepreneurs engaged in a range of industries including manufacturing, agriculture, fisheries and the hotel sector. Companies operating under Foreign Sales Corporation Act, the International Business Companies Act, International Financial Services Act and Socities with Restricted Liability Act as well, are also granted duty and tax-free concessions on imports to be used in their operations.

Details can be obtained from the Customs and Excise Department and the Barbados Investment Development Corporation (BIDC). [ Back to Top ]

Exports

The documents required for exporting goods are the Customs Declaration (Form C63) and the Commercial Invoice. For exchange control purposes, a Central Bank Form is also required.

Preferential treatment is offered by a number of countries for exports from Barbados. These include:

Caribbean Common Market members States
European Union - LOME IV
Canada - CARIBCAN
United States of America - Caribbean Business Initiative (CBI)
Venezuela - CARICOM/Venezuela Agreement
Columbia - CARICOM/Columbia Agreement

Trade Facilitation

Trade Facilitation is stressed within the Department and in this regard details on Customs procedures and requirements can be readily obtained by contacting the staff. Licenced Clearing Agents (Customs Brokers) are also competent to offer advice with respect to customs requirements.

Contact:

Barbados Customs & Excise Department
Barbados Port Authority Building
University Row, Bridgetown
Barbados, W.I.
Tel: (246) 430-2300
Fax: (246) 427 7358
Email: frank_Philips@barbadosbusiness.gov.bb or bryan_broomes@barbadosbusiness.gov.bb [ Back to Top ]

Assistance To Investors in the Hotel Sector In Barbados

Persons investing in the tourism industry in Barbados are assisted by two main types of incentives provided under the Tourism Development Act, 2002 of the Laws of Barbados and the Refurbishing Scheme.

Benefits

An investor whose project is approved under the Tourism Development Act is entitled to import, free of duty, the necessary building materials, items from a wide ranging list. The investor is also allowed to write off the capital expenditure in building or extending (or purchasing) the hotel, against revenue for income tax purposes. If the capital expenditure is, more than can be written off in one year, it may be carried forward for a maximum of fifteen years.

Contact:

Ministry of Tourism
Sherbourne Conference Centre
Two Mile Hill
St. Michael, Barbados
Tel No. (246) 430-7500
Fax. No. (246) 436-4828
e-mail: alyson_forte@barbadosbusiness.gov.bb or allan_franklin@barbadosbusiness.gov.bb [ Back to Top ]

Refurbishing

A person who owns or manages a hotel which is in operation and is registered with the Barbados Tourism Authority, may apply in writing to the Permanent Secretary, Ministry of Finance for permission to import, free of customs duty, items from a wide ranging list, which are required for the refurbishing or upgrading of the hotel. This list does not include building materials; those are covered under the Tourism Development Act.

The application should be accompanied by supporting documentation such as invoices or bills for the goods being imported.