10 May 2021

On May 7, 2021, the Ministry of International Business and Industry sissued a reminder that ALL Grandfathered international business companies (“IBCs”)_ and international societies with restricted liability (“SRLs”) will cease to be grandfathered after June 30, 2021 and the benefits attaching to such status will no longer be available.

Consequently, applications for a Foreign Currency Permit (the “FCP”) for such IBCs and SRLs must be submitted to the MIB expeditiously in order to be approved in time June 30, 2021.

Any entity governed by the laws of Barbados which earns 100% of its  income in foreign currency eligible to apply for an FCP.  The FCP is useful because it confers a number of benefits, including:

1. exemption from exchange control restrictions;
2. exemption from withholding tax on payment of dividends to non-residents;
3. exemption from withholding tax on all other payments to non-residents;
4. exemption from payment of stamp duty and property transfer tax (with the exception of a nominal payment of US$100 stamp duty);
5. exemption from payment of value added tax and duties on importation of plant, machinery and raw materials; and
6. income tax concessions for specially qualified individuals for a period of 3 years.

An  application for an FCP must be made on  behalf of an entity by a licensed service provider. In addition, its corporate services must be administered by a licensed corporate service provider.

We  can assist in such regard and facilitate the provision of the required services through our affiliated entity,  FT Corporate and Fiduciary Services Ltd., which is licensed and offers registered office and annual maintenance services.

 Our team would be happy to assist you with this process. Feel free to reach out to us at info@ft-legal.com. We are here to support and guide you.