Barbados is putting measures in place to sustain and build out its International Business Sector while preparing for its Organization for Economic Co-operation and Development (OECD) 2025 review.
Minister of Energy and Business, Senator Lisa Cummins, disclosed this during a virtual address at BIBA’s Global Business Industry Update 2023 Conference. She noted that although it is a challenging time for global business, Barbados is doing what is necessary to ensure the future viability of the sector.
Speaking on the topic of pillar two measures, specifically the global convergence tax rate, Ms. Cummins stressed that Government would continue to work in tandem with companies and mid-market enterprises in the sector, to ensure that “we can preserve the status quo for businesses” as we frame Barbados’ approach to the changing environment of the global business sector.
Minister Cummins highlighted that, to date, two main actions had been taken in that direction. “First, we have contracted, as it relates to matters relating to the OECD, a firm out of Paris, and they have been working with us since perhaps late last year in November, and we are now contracted with them to provide direct support to us as it relates to the OECD Global Forum related issues.
“And secondly, we have recently, I believe, … signed off on a technical assistance cooperation programme with the OECD global forum, where they will be working directly with Barbados to ensure that we are ready for a 2025 review, and so we are doing a comprehensive body of work between now and 2025 to ensure that Barbados is positioned exactly where we need to be,” she said.
Through the OECD agreement, Barbados would be on a two-year trajectory path to be in a position to ensure that the country is fully compliant with all of the OECD Global Forum measures.
In addition, as part of the agreement, there’s a Training of the Trainers programme for the region, and the Ministry will be working with The University of the West Indies to provide the training. Ms. Cummins expressed her hope that Barbados would become the hub for countries in the region to benefit from tax and global business training.
The Minister emphasised that training is important because skills development is a key component of sustainability. By giving persons in the sector the ability to train, retrain, upskill and retool, it ensures that persons in and entering the sector are aware of the global and geopolitical challenges the industry is facing and proceed to chart a way forward to position the industry in being proactive and viable.
Senator Cummins also revealed that “Barbados is now a fully equipped and monitoring mechanism jurisdiction” and was “designated an FM jurisdiction”.
She commended the BIBA executive secretariat and its members for their “extraordinarily high level” of functionality, which she noted has allowed Barbados to distinguish itself as a destination, jurisdiction and domicile for living and working, particularly in the global business sector.
Senator Cummins gave the commitment that she would continue to engage with the association as Government continues to pursue avenues to sustain and build out the sector.