Barbados: International Tax Planning Entities

Mutual Funds

Mutual Funds licensed to operate in Barbados are “subject to tax” and are taxed at normal Barbados domestic corporate tax rates.

There are three types of licenses;

Limited Investors

Exempt Mutual Fund License

Mutual Fund Licence.

Exempt mutual funds, or mutual funds that are licensed in a foreign jurisdiction approved by the Minister, can conduct business in Barbados if they have appointed an agent in Barbados and have been granted a licence by the Securities Commission.

Under the domestic tax law of the Barbados Income Tax Act, There is a deduction allowed for income in a given tax year from assessable income that which is the income of the shareholders.

Distributions to non resident investors are exempt from withholding tax.
Transactions concerning the acquisition or transfer of shares in mutual funds are exempt from stamp duty and property transfer tax

Under the Mutual Funds Act 2002, persons must be licensed by the Securities Commission in order to carry on mutual funds business in or from Barbados