Barbados and Sweden have signed a protocol to amend the Convention for Avoidance of Double Taxation and the Prevention of Fiscal Evasion with respect to taxes on income.
The Ministry of International Business and International Transport has issued a statement confirming that the Protocol to Amend the Convention for Double Taxation Agreement (DTA) between the two countries entered into force on December 12, last year, in accordance with Article III.2 of the Protocol, after being signed on November 3, 2011.
It stated that the entry into force of the Protocol to the DTA represented Barbados’ firm strides to expand its treaty network, and also signalled the country’s willingness to foster closer ties with Sweden and Northern Europe.
It further noted that Barbados continued to aggressively promote itself as a legitimate international business and financial services centre.
"Its [Barbados’] 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 on this basis that opportunity should be capitalised upon to cultivate a strategic business alliance which would benefit both Barbados and the Kingdom of Sweden," the statement said.
It added that Government intended to vigorously pursue the expansion of its treaty network in 2012. The statement pointed out that Barbados was at an advanced stage of negotiations with Italy, while arrangements were under way for the signing of completed agreements with Bahrain and Belgium.
To date, Barbados has DTAs with the Caribbean Common Market, the United States, Canada, United Kingdom, Finland, Norway, Malta, Sweden, Switzerland, Austria, the Netherlands, Seychelles, Mexico, Panama, Luxembourg, Spain, Cuba, Czech Republic, Venezuela, China and Mauritius.
DTAs are recognised as one of the most effective mechanisms for developing and strengthening new and existing economic ties between nations. The negotiation of these agreements is a critical element of a framework for developing substantial trading opportunities.
According to the statement, such agreements also facilitate joint ventures, reduce taxes and business-related costs, facilitate the exchange of tax information, and reduce the fiscal impediments to cross-border trade and investment.