Barbados looking to become financial services center – ammends tax agreement with Sweden

Barbados and Sweden have signed a protocol to amend the Convention for Avoidance of Double Taxation and the Prevention of Fiscal Evasion with respect to taxes on income.

The protocol has been in effect for a month.

A statement from the Ministry of International Business and International Transport indicated that the Double Taxation Agreement represented Barbados’ “firm strides to expand its treaty network, and also signalled the country’s willingness to foster closer ties with Sweden and Northern Europe”, while continuing to aggressively promote Barbados as a legitimate international business and financial services center.

“Barbados’ distinction as a service economy and a strategic base for onward investment into other markets has made it an attractive jurisdiction for conducting business. It is on this basis that opportunity should be capitalized upon to cultivate a strategic business alliance which would benefit both Barbados and the Kingdom of Sweden,” the statement said.

Barbados is now at an advanced stage of negotiations with Italy, while arrangements are under way for the signing of completed agreements with Bahrain and Belgium.

Currently, Barbados has Double Taxation Agreements with the Caribbean Community (CARICOM), the United States, Canada, United Kingdom, Finland, Norway, Malta, Sweden, Switzerland, Austria, the Netherlands, Seychelles, Mexico, Panama, Luxembourg, Spain, Cuba, Czech Republic, Venezuela, China and Mauritius.

Double Taxation Agreements are recognised as one of the most effective mechanisms for developing and strengthening new and existing economic ties between nations. The negotiation of these agreements is a critical element of a framework for developing substantial trading opportunities.

According to the statement, such agreements also facilitate joint ventures, reduce taxes and business-related costs, facilitate the exchange of tax information, and reduce the fiscal impediments to cross-border trade and investment. – (CMC)