In an effort to curb tax evasion, Barbados has signed the multilateral convention to implement tax treaty related measures to prevent base erosion and profit shifting of organisation for Economic Cooperation and Development (OECD).
The convention aims to prevent the strategies that exploit gaps in tax rules to artificially shift profits to low or no-tax jurisdictions leading to little or no overall payment of corporate tax.
Barbados minister of industry international business, commerce and small business development Donville Inniss said: “Today’s signing of the OECD’s MLI is a reaffirmation of Barbados’ longstanding commitment to philosophies, rules and legislation that ethically facilitate international trade and commerce.”
At the same time, Barbados has been removed from the blacklist of the European Union (EU), thereby removing the hurdles to international business for the nation.
The reclassification was done considering the island’s efforts to incorporate EU’s strategy for effective international taxation.
“Barbados will continue to be an innovative and highly cooperative partner within the global economy – working assiduously to reinforce its place as a pre-eminent offshore financial jurisdiction and destination of choice for international business,” Inniss added.