CARICOM Updates Tax Treaty to Meet International Standards

A senior official from the Guyana-based Caribbean Community (CARICOM) Secretariat announced on Monday that the 15-member regional bloc is updating its tax treaties to align with global standards. Evelyn Wayne, Director of Economic Policy and Development at the CARICOM Secretariat, emphasized the importance of tax cooperation and adapting to shifts in the international tax landscape during a recent two-day virtual seminar.

Wayne highlighted that the CARICOM Council for Finance and Planning (COFAP) has recognized the need to update the CARICOM Tax Treaty to reflect the international tax standards and rules member states have committed to adopting.

“With support from the OECD (Organization for Economic Co-operation and Development), we have begun updating the treaty and recently finalized a protocol that includes provisions for exchanging tax-related information and resolving disputes,” Wayne explained.

The seminar brought together 200 participants from regional tax and finance sectors, along with key organizations such as the Caribbean Organisation of Tax Administrators (COTA), the OECD Centre for Tax Policy and Administration, the Commonwealth Association of Tax Administrators, the IMF’s Caribbean Regional Technical Assistance Centre (CARTAC), and the World Bank Group. The event focused on understanding recent developments in international taxation and exploring how CARICOM nations can adopt these standards while addressing their unique circumstances.

One significant factor Wayne noted was the commitment of most CARICOM states to creating a single market and economy, which necessitates common rules to ensure non-discriminatory treatment of CARICOM nationals and their businesses. She also referenced the Intra-CARICOM Double Taxation Agreement, established before the decision to form the CARICOM Single Market and Economy (CSME).

This agreement laid the groundwork for tax cooperation and benefit-sharing, serving as a cornerstone of CARICOM’s economic integration efforts.

The initiative underscores CARICOM’s proactive approach to harmonizing regional policies with global tax norms, ensuring the bloc remains competitive and compliant in an evolving international financial environment.