Moving closer to OECD standard
BARBADOS IS PROTECTING its international business reputation while enhancing the capital gains prospects of local entrepreneurs doing business with China. This is being made possible through upgraded provisions that have been enshrined in a new Protocol to the Barbados-People’s Republic of China Double Taxation Agreement, which was signed off between the countries last Wednesday. After the ceremony at the Warrens Office Complex, Warrens, St Michael, director of International Business Francoise Hendy noted that the first major change in the protocol “is that we have incorporated the OECD [Organisation for Economic Co-operation and Development] standard for information exchange”.
White list “Our network of treaties is incorporating the standard, which is why we have been on the white list from the G20 Summit. We thought we would take the opportunity to include that provision to the existing treaty in the protocol. “China is not an OECD member, but it has observer status and it is important for Barbados to make sure that our treaty network reflects our policy when it comes to tax information exchange,” Hendy said. The OECD, which monitors tax havens, launched a serious crackdown on uncooperative tax jurisdictions last year, placing countries accordingly on a black, grey or white list during a naming and shaming exercise.
Barbados and China first signed the double taxation agreement on May 15, 2000, and Hendy said the second significant change to the treaty mirrored adjustments in company taxation laws in China. “It affects principally the capital gains provision of the treaty, which is very advantageous,” she said. Wei Qiang, Ambassador of the People’s Republic of China to Barbados, said the conclusion of the Protocol to the agreement meant “new horizons have been opened to our entrepreneurs in both countries to explore and exploit business opportunities in a sound and confident manner for the benefit of both sides”. (SR)