Changes in Barbados by Anthony Murty

There have been changes introduced in the fees payable and the filing procedures for some of the offshore entities. The International Financial Services Amendment) Act 2006 has introduced a fee to be paid on application for a licence the amount has not yet been prescribed. The Central Bank may now also impose a charge on licensees to meet expenses relating to an examination or provision of banking supervision services. The International Business (Miscellaneous Provisions) (No 2) Act, 2007 has increased the fees and amended the penalty charges for International Business Companies (IBC) and International Societies with Restricted Liability (ISRL). It has also introduced a charge for the registration of an International Trust. An IBC or an ISRL that does not apply to have its licence renewed before 31 December of the year preceding the licence year; may now apply to have the licence renewed before the following 1st February on payment of a penalty of $1,000. After that date an IBC or ISRL may be reinstated on payment of a fee of $2,100. Reinstatement must be within five years of the expiry of the previous licence. New forms have been introduced by amendments to the regulations and the fees are now not payable with the application but only when the licence has been approved. New practice notes have been issued. The Minister responsible for international Business by Statutory Instruments has now delegated the power to issue IBC or ISRL licences to the Director of International Business or in his absence the Deputy Director. The new scale of fees payable in Barbados dollars are as follows:

New IBC/ISRL licence Bds$ 850.00 Renewal of IBC/ISRL licence Bds$ 850.00 Penalty for late renewal of IBC/ISRL licence Bds$ 1,000.00 Reinstatement of IBC/ISRL licence Bds$ 2,100.00 Registration of International Trust Bds$ 1,100.00 Certified copies of new IBC/ISRL licences, Renewals, reinstatements and International Trust certificates Bds$ 75.00

We are still awaiting the legislation that will apply from 1st January 2007 where a Barbados resident companies, including international business companies, holding at least 10% of the capital of an overseas company, and the shares are not held as a portfolio investment, the dividends derived from the overseas companies will be exempt from tax in Barbados will be exempt from withholding tax on dividends paid from foreign source income to non-resident shareholders of the Barbados companies.

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