Barbados To Focus On Building Tax Treaty Network

by Phillip Morton, Investors Offshore.com

12 October 2009

The Barbados government has drafted a two-year short- and medium-term action plan to support further expansion of the island’s International Business sector, and to preserve its reputation.

The plan was announced by Minister of Economic Affairs, Innovation, Trade, Industry and Commerce, David Estwick, while addressing the International Business Week Conference in Barbados.

Noting the critical role that the sector plays in the island's economic development, Estwick explained that the government would focus on diversifying and expanding the products and services it offers during the next two years, as well as expanding cooperation with other countries in order to reduce barriers to investment in the island. He said:

“This initiative will ensure the preservation of the integrity and reputation of key elements of the Barbados business brand, as well as to ensure that Barbados' products and services continue to meet the needs of the new environment.”

“The government plans to expand the tax and treaty network, and intensify cooperation with the OECD on taxation information exchange within the tax treaty."

Currently Barbados’ financial sector contributes to 15.2% of its GDP, provides 3,000 local jobs, and accounts for 60% of the corporate tax paid. Despite the financial crisis, tax receipts for the sector increased in the first two quarters of 2009 to BBD2.6m (USD1.3m) from BBD1.9m over the same period in 2008.

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