Netherland Antilles Steps Closer To TIEA With US

by Amanda Banks, Tax-News.com, London

22 November 2006

Parliamentarians in the Netherland Antilles have agreed to a draft law that would bring into force a bilateral Tax Information and Exchange Agreement (TIEA) with the United States.

Welcoming the support for the tax pact amongst lawmakers, State Secretary of Finance, Alex Rosaria said in a statement that the agreement with the US would strengthen the jurisdiction's position as a reputable international financial centre, while helping the US combat money laundering, terror financing and tax evasion.

“We made important steps forward in our efforts to strengthen our international financial sector and will continue to work with others to crack down on tax evasion, money laundering and terror financing,” he declared.

Rosario also pointed that the Netherland Antilles economy will benefit from a provision in the treaty exempting US companies holding business seminars in the Netherland Antilles from tax.

Furthermore, if the treaty is approved, the Netherland Antilles can take advantage of the Caribbean Basin Trade Partnership Act, allowing goods to be imported into the US from the islands tariff-free, Rosario noted.

The Financial Secretary added that the Netherland Antilles will continue with its new policy of creating a double tax avoidance treaty network by commencing talks with nordic countries in February 2007. The Netherland Antilles is also continuing its tax treaty talks with Barbados and Trinidad & Tobago.

Recommended