New Economic Substance Legislation in Barbados - August 2019
In common with numerous other jurisdictions worldwide, this year Barbados will introduce new economic substance requirements. The new requirements are in response to European Union and OECD initiatives to prevent harmful tax practices and profit shifting.
The new requirements in Barbados are contained in the Business Companies (Economic Substance) Act, 2018, which is due to come into force by December 31, 2019. In summary, the Act will require business companies that are resident in Barbados for tax purposes and which conduct certain types of activity to have adequate substance in the jurisdiction.
Although the Act is not yet finalized and official guidance has not been provided, at this time we are able to set out the likely core details of the legislation and we will provide further information when the legislation is finalized.
Please read our briefing for more information.