Customs Duty Concessions: If a tourism project or product owner or operator has received Interim Approval, they may be granted a permit to import building materials and supplies for construction and development without paying customs duty. These supplies must be used solely for the tourism project and can be purchased locally, imported, or from a bonded warehouse. Furthermore, owners or operators of a tourism project or product that has been granted Interim Approval are exempt from customs duties on specific supplies that will be used for equipping the project. Refurbishment concessions for a tourism product are also available, provided the owner or operator of the product has a valid license or is registered with the Barbados Tourism Authority. If the permit holder can prove to the Comptroller of Customs that the building materials and supplies purchased for the tourism product were obtained in Barbados or that the customs duty was paid, a refund of customs duty (including VAT and Environmental Levy) may be granted. However, these items cannot be sold, rented, exchanged, exported, or used for any other purpose except in exceptional cases.
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Write-off of Interest: An owner or operator of a hotel or restaurant worth no less than BDS$1.75 million can borrow funds from a private sector lending institution to upgrade the facility and can deduct 150% of the interest paid on the loan from their taxable income for loan funds up to BDS$7.5 million. An investor building a new hotel with no less than 250 rooms and conference facilities for no less than 500 people can deduct 150% of the interest paid on loan funds up to BDS$40 million in any given income year. The owner or operator of a new hotel being constructed inland can deduct 150% of interest paid on a loan up to BDS$20 million, and an investor purchasing two or more hotels, each with 50 rooms or less, to manage, own, and market as a group can deduct 150% of the interest paid on a loan up to BDS$15 million. An investor constructing, upgrading, or refurbishing a tourist attraction based on Barbados’s natural or cultural heritage can deduct 150% of the interest paid on loan funds up to BDS$3 million. This investor can also claim an income tax credit of 30% on the purchase of plant and equipment costing over BDS$100,000 used in refurbishing, upgrading, or constructing the attraction. The tax credit that is not written off in a year can be carried forward for no more than 15 years.
Training: An owner or operator of a tourism project or product who incurs training expenses for their staff in a given income year can deduct 150% of those expenses from their income for tax purposes. The expenses that can be claimed include fees paid to a training institution or trainer approved by the Barbados Ministry of Tourism or the Barbados Ministry of Education, as well as the cost of accommodation and subsistence. The deduction will be 200% of the training expense if the tourism project or product has an employee share ownership scheme approved by the Ministry of Tourism.
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Marketing: An owner or operator of a tourism product who incurs marketing expenses in a given income year can deduct 150% of those expenses for tax purposes. Marketing expenses may include the cost of travel to trade shows, conventions, and meetings, the printing of brochures and other literature for overseas distribution, the cost of electronic marketing, and the hiring of short-term marketing consultancy services.
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