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Barbados To Focus On Building Tax Treaty Network,
by Phillip Morton, Investors Offshore.com
Monday, October 12, 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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