Barbados has suffered from a lack of investment due to difficulties in understanding the scale of the potential in country. This, coupled with a difficult licencing regime in comparison to other areas, has meant that the country has not needed to amend or revisit the tax regime. Consequently, the outlook remains Neutral.
May 19, 2021
Concession fiscal regime with royalty, corporate income tax and an additional profits tax. The State-owned Barbados National Oil Company (BNOC) is guaranteed a maximum share of 25% in any license so long as it chooses to do so prior to the exploration license being awarded. The State’s interest is carried until a declaration of commerciality.
Barbados is the largest economy in the Eastern Caribbean. The Barbados Economic Recovery and Transformation (BERT) program aims to decrease the debt to GDP ratio, strengthen the balance of payments, and stimulate growth in the economy. While the government met its IMF targets, the program dampened income and spending power due to public sector layoffs, the introduction of new indirect taxes, and a decline in the construction sector.
Source: ESRI, Heritage Index, HMG Foreign & Commonwealth Office, US Department of State, International Trade Administration, International Law Review, Ernst & Young, Wood Makenzie & OGA data.
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