Bahamas And China Further Tax Cooperation

by Phillip Morton, Investors Offshore.com

03 December 2009

On December 1, the governments of China and the Bahamas signed an OECD model agreement on the exchange of tax information. The agreement was signed by the Bahamaian Minister of Foreign Affairs and Deputy Prime Minister, Brent Symonette, and Chinese Ambassador to the Bahamas, Dingxian Hu.

Thanking the Chinese Ambassador for his influential role in the negotiation of the Tax Information Exchange Agreement (TIEA), Symonette noted that the agreement was the first of its kind undertaken by China.

The TIEA is the sixth concluded by the government of the Bahamas which incorporates the accepted international standards in respect of transparency and effective information exchange in tax matters. It is the third TIEA concluded by the government of the Bahamas with a member of the G-20.

The Deputy Prime Minister also touted the agreement as another milestone in the ever deepening relationship between the Bahamas and China. Together with the Investment Promotion and Protection Agreement with China, the TIEA provides an enhanced framework for economic cooperation.

The investment agreement was signed in early September on the occasion of a visit to the Bahamas by Wu Bangguo, Chairman of the Standing Committee of the National People’s Congress of the People’s Republic of China.

It addresses the conditions for creating, stimulating, encouraging, promoting, improving, and protecting investment by Bahamian and Chinese investors in both countries.

Recommended