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Income Tax

PAYE is a withholding tax which was introduced in Barbados in 1957 and simply means 'Pay As You Earn’. Currently every employee who earns a wage or salary of more than $481 per week or $2083 per month is liable to PAYE.

The P.A.Y.E. system allows the employee the privilege of paying his or her income taxes for an income year over a longer period than having to face paying a large tax bill when the return is filed. It is the best way for employed persons to meet their tax obligations without too much undue hardship as this system simply allows the employee the luxury of paying his or her taxes in fifty-two (weekly) or twelve (monthly) or manageable instalments.