The expansion of the bilateral tax and investment treaty network has been recognized as an area of central importance falling under the remit of the International Business Division.
This expansion is integral and fits squarely into the wider scope of the Government of Barbados’ plan for the development of Barbados as a well-regulated, transparent international financial and wealth management centre of choice.
The conclusion of tax and investment treaties aids in the development and strengthening of existing ties between Barbados and other countries. The Government of Barbados is firmly of the view that the widening of its bilateral treaty network constitutes a pragmatic response to the challenges faced by developing countries in the new world order.
Not only will the enhanced treaty network be instrumental in securing long-lasting relations between treaty partners, but it will also provide opportunities for companies and individuals seeking comparative advantages in the global marketplace.
Bilateral tax and investment treaties encourage trade and investment activities, provide incentives for businesses and promote business contracts.
The combination of tax treaties and fiscal incentives provide many advantages to the international business and financial services sector, including reduced rates or exemption from taxes at the country of source on dividends, interest, royalties, capital gains, pensions and annuities.
The Government still maintains that Barbados can and must become competitive in managing and mitigating the risks involved in doing business and as such Barbados therefore distinguishes itself from other international financial services jurisdictions, as being a “treaty” country predicated in part on a “low-tax” as opposed to a “no-tax” regime. Its combination of DTAs and BITs makes Barbados unique within the Caribbean and particularly attractive to foreign investors.
Barbados currently has 36 DTAs and 9 BITs in force.