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Barbados Agrees To Revision Of Dutch DTA

by Phillip Morton, Investors Offshore.com

04 December 2009


The governments of the Netherlands and Barbados have signed a protocol which amends the convention on the avoidance of double taxation that they share, in order to quash tax treaty abuse.

The protocol in question amends the convention to prevent Dutch taxpayers from using the treaty to transfer dividends free of tax to a third country through the Caribbean territory.

Upon approval by both governments, the original treaty, in force since January 1, 2008, will be thus revised. The new text also stipulates a tax rate of no more than 15% on dividends, and contains more stringent parameters on eligibility.


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