The Barbados government has issued a stern reminder to taxpayers to settle their personal income tax obligations, originally due in April, to avoid forfeiting a promised $1300 rebate scheduled for December. Ryan Straughn, Minister in the Ministry of Finance, revealed on Tuesday that thousands of low-income Barbadians are set to receive their 2024 reverse tax credits in early December. However, he emphasized that this financial relief is contingent upon taxpayers clearing any outstanding balances.
Straughn cautioned that individuals who fail to file their taxes will not qualify for a refund, and those who have filed but still owe money will remain in debt. He urged prompt payment to prevent accumulating penalties. Under normal circumstances, Barbadians are required to pay half of their owed taxes by April and the remainder by September. Missing these deadlines disqualifies taxpayers from automatically receiving the rebate, though the Barbados Revenue Authority may, in certain cases, offset previous refunds against unpaid amounts.
The Minister reiterated that all 2024 refunds are being processed in October, but eligibility hinges on full compliance with tax obligations. The reverse tax credit scheme is specifically designed to assist individuals earning below the standard personal tax allowance. To qualify, applicants must be Barbados residents with an annual gross income of $25,000 or less, employed for at least four months during the income year, paid at least $1300 in National Insurance Scheme (NIS) contributions, and less than $500 in income tax for the year.
Straughn encouraged taxpayers to act swiftly, highlighting that timely payments to the Barbados Revenue Authority not only avoid penalties but also ensure eligibility for the December rebate.