Barbados Signs Double Tax Avoidance Agreement With Austria

by Ulrika Lomas, Tax-News.com, Brussels

30 March 2006

Barbados and the Republic of Austria have signed a convention for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income and capital gains.

The agreement was signed at the Austrian Embassy in Brussels by the Barbados Ambassador to Belgium and Head of the Barbados Mission to the European Community, Errol Humphrey, and Austria’s Ambassador to Belgium, Dr. Franz Cede.

According to an official of the Barbados Ministry of Economic Affairs and Development, the agreement signaled Barbados’s further commitment to expand its treaty network, and "is particularly significant since it is the first agreement concluded with an OECD country in the post 2001 OECD Harmful Taxation Initiative, which vindicated Barbados’ international business and financial services regime".

During the signing ceremony, Ambassador Humphrey noted that the compatibility of Barbados’s and Austria’s positions on issues related to taxation and international business was evidenced by the fact that the two sides were able to conclude the agreement after just one negotiating session. He said this demonstrated a general confidence that the agreement would be beneficial to both countries.

"The negotiation of such agreements is a critical element of a framework for developing substantial trading opportunities," observed Ambassador Humphrey

He continued:

"They facilitate joint ventures, reduction in taxes and business related costs, exchange of tax information, and the reduction of fiscal impediments to cross-border trade and investment. The existence of such a network is also a common feature of a mature international business centre."

"Barbados continues to be viewed as a significant international business and financial services centre. Its distinction as a services 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 the local business community should capitalise on this DTA platform to cultivate a strategic business alliance which would redound to the benefit of Barbados and Austria."

Ambassador Humphrey added that Barbados intends to "vigorously pursue" the expansion of its treaty network in 2006.

Currently, Barbados's network of DTAs includes agreements with the US, the UK, Sweden, Finland, Norway, Switzerland, Malta, Botswana, CARICOM, Venezuela, Cuba, China, Mauritius and Canada.

Negotiations have also been initiated with the Republic of Italy and the Kingdom of the Netherlands.

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