Deciding to cease your tax residency in Barbados is a significant step that involves a series of legal processes. This guide will walk you through each step to ensure you comply with Barbadian tax laws.
Step 1: Determine Your Residency Status
Before taking action, confirm your current tax residency status. This involves reviewing the number of days you have spent in Barbados within the tax year and your ties to the country (e.g., family, property, business).
Step 2: Notify the Barbados Revenue Authority (BRA)
You must formally notify the Barbados Revenue Authority of your intention to cease tax residency. This can be done in writing, stating the date you plan to leave and providing any necessary documentation to support your claim.
Step 3: Settle Outstanding Taxes
Ensure that all your tax liabilities are settled before you cease your tax residency. This includes filing any outstanding tax returns and paying any taxes due. Failure to do so may result in penalties or legal action.
Step 4: Close Local Bank Accounts
If you have any local bank accounts, you should close them or change your status with the bank. Notify your bank of your change in residency status to ensure proper handling of your accounts.
Step 5: Update Immigration Status
Inform the Barbados Immigration Department of your intention to cease residency. This may involve submitting a formal application or notification, depending on your visa or residency status.
Step 6: Retain Records
Keep copies of all correspondence and documents related to your cessation of tax residency. These records are crucial in case of future disputes or queries from the tax authorities.
Legal References
- Income Tax Act, Cap. 73 of the Laws of Barbados
- Barbados Revenue Authority Guidelines
- Immigration Act, Cap. 190 of the Laws of Barbados
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