Barbados has initialed a Tax Information Exchange Agreement (TIEA) with Denmark and its dependencies including Greenland and the Faroe Islands. In addition, a Double Taxation Agreement (DTA) was initialed with Iceland.
Protocols adding to already existing DTAs with Finland, Norway and Sweden were also initialed.
These moves reinforce Barbados’ policy of expanding its tax treaty network through agreements that allow for tax information exchange between treaty partners. This furthers the island’s commitment to the Organization for Economic Co-operation and Development’s (OECD) policy of having partner countries implement the agreed upon international tax information exchange standard.
The Barbados Minister of International Business and International Transport, the Honourable George Hutson, M.P., commented on the agreement: “We think that where sovereign states have a choice about what kind of instrument to use to codify the globally accepted standard on information exchange with respect to tax matters it is important that the process admit the possibility of dialogue as the best approach, especially where one country expresses an interest in using an instrument that will not only apply the standard but could support the economic development strategies of both countries.”
Barbados will be looking to bring the newly initialed agreements into force as quickly as possible and plans are in place to continually expand the island’s extensive tax treaty network. Tax treaties and information exchange agreements play a key role in attracting international investment and nurturing economic growth.