Tax Treaty Between Barbados And Botswana Enters Into Force

by Amanda Banks, Tax-News.com, London

23 August 2005

The Double Taxation Avoidance Agreement between Barbados and the Republic of Botswana entered into force on August 12, six months after the treaty was signed and sealed by representatives of both governments.

The accord, signed by Barbados’ Minister of Industry and International Business, Dale Marshall and Botswana’s Minister of Presidential Affairs and Public Administration, Phandu Skelemani on February 23, signalled Barbados’ commitment to the expansion of its treaty network as well as its willingness to foster closer ties with the African continent.

According to Prime Minister Owen Arthur's government, Barbados’s distinction as a service economy and a strategic base for onward investment into other markets has made it an attractive jurisdiction for conducting business. It is against this backdrop that Government believes the opportunity should be capitalised upon to cultivate a strategic business alliance which would benefit both Barbados and the Republic of Botswana.

The Double Taxation Agreement will serve to facilitate joint ventures, reduction in taxes and business-related costs, exchange of tax information, and reduction of fiscal impediments to cross-border trade and investment.

The Barbados government is currently attempting to expand its DTA network, and to date, Barbados has DTAs with CARICOM, the United States, Canada, the United Kingdom, Finland, Norway, Malta, Sweden, Switzerland, Cuba, Venezuela, China and Mauritius.

At present, advanced negotiations are underway with Italy, while negotiations have been completed with the Netherlands and Austria, with arrangements currently being made for their signature.

Technical discussions on the opening of negotiations have also been held with the Republic of Ireland, Brazil and South Africa. More agreements are expected to be concluded in the near future.

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