Barbados has passed progressive legislation such as the Tourism Development Act (2002) and the Special Development Areas Act to offer an excellent range of Customs Duty and Income Tax Concessions for approved Tourism Development Projects.
The list of incentives include:
- Tourism investments that incur expenditure on training of staff, marketing and tourism product development research may deduct 150 % of that expenditure from income for tax purposes.
- Loan funds not exceeding BDS$7.5 million may deduct 150% of interest paid on loan from taxable income.
- The excess of tax credits that cannot be written-off in one year, can be carried forward for a period not exceeding 15 years.
- Hotels with expenditure over $200 million are allowed one additional year to write-off expenditure, for each additional $20 million up to a maximum of twenty years.
- Income tax at a reduced rate of 30% for Special Tourism Development Areas.
- Approved developers and certain investors may be granted initial and annual tax allowances on an industrial building of 60% and 6% respectively.