Netherlands Antilles Discusses Double Tax Treaty With Barbados

Amanda Banks, Tax-news.com, London

24 January 2001

The Netherlands Antilles' Finance Minister, Russell Voges, has confirmed that discussions are taking place with Barbados concerning a tax treaty between the two countries.

According to the Netherlands Antilles' media, the talks emerged from the recent OECD and Joint Commonwealth meeting in Barbados. The Island's news service, the Daily Herald, reported that Mr Voges met with Barbados authorities to discuss the possibility of a tax treaty to prevent an individual who generates income in one country from paying tax in another.

Currently there are a number of people who would breathe a very big sigh of relief if the double tax treaty came into operation; many people live in Barbados and work in the Antilles are forced to pay income and profit tax in both countries.

In the Daily Herald Mr Voges said the treaty would be established in line with international laws and he expounded on the benefits the double tax treaty would bring to the Netherlands Antilles. He said they are two-fold: 'Our islands become more attractive for investors and it is also good to set up a network of treaties.'

Mr Voges was eager to point out that the meeting with the Barbados authorities had been an 'exploratory' one: 'We got documents of Barbadian tax legislation. We will now suggest a follow-up meeting. It is a slow process with no fast movements. It will take at least a year to materialize,' he explained.

If the agreement goes through the Netherlands Antilles can add Barbados to its mighty list of tax treaty agreements with other countries - Norway, that is. It did have double tax treaties with the US and UK but these were cancelled some years ago.

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