Income Tax > Barbados income tax structure   

Allowable Deductions:

An individual 60 years and over and in receipt of a pension - $30,000. All other individuals -

1. $17,500 in respect of income Year 2004
2. $20,000 in respect of income Year 2005
3. $22,500 in respect of income Year 2006
4. $25,000 in respect of income Year 2007 and subsequent income years

Spouse Allowance - $3,000(this is not allowed to a person with exempt income).

Child Allowance
For each child not exceeding two under eighteen years of age but under twenty-five years of age and attending a full time educational establishment $1,000.

Special Deductions:

1. Approved Annuity Contracts/Registered Retirement Savings Plans

Contributions to a Registered Retirement Plan and or a Registered Retirement Savings Plan - 15% of assessable income or $4,000 paid to either plan whichever is the lesser.

Where contributions are paid to both plans maximum claim must not exceed $6,000 or 15% of assessable income whichever is the lesser amount.

2. Covenanted Payments

Annual payments under convenant to charitable organizations - 10% of total assessable income.

Annual payments under covenant to minors or incapacitated individuals - 5% of total assessable income.

3. Allowable Savings with a Co-operative Society

Savings with a co-operative society up to $6,000 deposited in instalments over an initial two year period and thereafter $3,000 per annum.

4. Subscriptions to Registered Trade Union

Contributions made to a registered trade union or statutory association of employees up to a maximum of $240 per annum.

5. Subscriptions by a Parliamentarians to a Political Party

Contributions to a political party represented in Parliament by members of Parliament up to a limit of $5,000 or 10% of salary whichever is the lesser.

6. Home Allowance - for owner occupied residential property
1. In respect of Income Year 2003 - $6,000
2. In respect of Income Year 2004 - $10,000
3. For expenditure of mortgage interest, insurance premiums, house repairs, renovations, energy saving or water-saving devices.
7. Retrofitting

With roof straps and window shutters - an additional amount of $2,500.

8. Venture Capital Funds

Contributions to venture capital funds or to an innovation fund or a Development finance institution - maximum claim $10,000.

9. New Shares in a Public Company/ Mutual Fund Investment

Maximum claim for either category or a combination thereof is $10,000 (Restricted to resident individual only).

10. National Insurance Contributions - paid by an employer on behalf of his employer(s)

NOTE: National Insurance Contributions deducted from salary or wages of the employee are not an allowable deductions for tax purposes.