Question 1

What are the individual income tax brackets in Barbados under the Income Tax Act?

Accepted Answer

Income tax brackets: first $25,000 BBD is tax-free (allowance); taxable income up to $50,000 is taxed at 12.5%; and income exceeding $50,000 is taxed at 28.5%.

Question 2

What is the standard basic personal tax allowance for Barbados residents?

Accepted Answer

Resident individuals are entitled to a standard basic personal allowance of $25,000 BBD per year ($40,000 BBD for pensioners aged 60+).

Question 3

What are the mandatory National Insurance Scheme (NIS) employee contribution rates?

Accepted Answer

Employees contribute 11.1% of insurable earnings (pension, health, unemployment), and employers contribute 12.75%, totaling 23.85%.

Question 4

What is the statutory monthly insurable earnings ceiling under the NIS?

Accepted Answer

NIS contributions are capped at an upper insurable ceiling of $5,200 BBD monthly ($1,200 BBD weekly), updated periodically.

Question 5

When must employers file monthly PAYE tax declarations with the Barbados Revenue Authority?

Accepted Answer

Employers must declare and remit withheld PAYE income taxes and NIS contributions by the 15th day of the following calendar month via TAMIS.

Statutory Head	Legal Basis / Rate	Employee (BBD)	Employer (BBD)
National Insurance Scheme (NIS)	11.10% employee / 12.75% employer (capped at BDS$5,120)	BDS$0.00	BDS$0.00
BRA PAYE Income Tax Tier 1	12.5% on first BDS$50,000 taxable annual income	BDS$0.00	N/A
BRA PAYE Income Tax Tier 2	28.5% on taxable annual income exceeding BDS$50,000	BDS$0.00	N/A
Total Statutory Contributions	Combined Tax & NIS	BDS$0.00	BDS$0.00

Barbados PAYE & Salary Tax Calculator

Salary & Statutory Deductions Summary

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Engr. Muhammad Shahzad