The Double Taxation Agreement (DTA) between the Government of Barbados and the Italian Republic has entered into force in accordance with Article 30 of the Agreement.
The instruments of ratification for the Convention for the Avoidance of Double Taxation with Respect to Taxes on Income and the Prevention of Fiscal Evasion were exchanged by the Minister of Industry, International Business, Commerce and Small Business Development, Donville Inniss, and Ambassador and Special Envoy to the Caribbean of the Italian Republic, Paulo Serpi.
The entry into force of the Barbados/Italian Republic DTA represents not only Barbados’ firm strides to expand its treaty network, but it also signals the country’s willingness to foster closer ties with Italy and the European Union in particular.
Double Taxation Agreements have been recognised as one of the most effective mechanisms for developing new and strengthening existing economic ties between nations.
The negotiation of these agreements is, therefore, a critical element of a framework for developing substantial trading and investment opportunities. They facilitate joint ventures, reduction in taxes and business-related costs, exchange of tax information, and reduction of fiscal impediments to cross-border trade and investment.
Barbados continues to aggressively promote itself as a legitimate international business and financial services center. Its 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 Italian Republic.
The Government of Barbados intends to vigorously pursue the expansion of its treaty network in 2017 and beyond. To date, Barbados has 37 DTAs with the Caribbean Common Market (CARICOM), the United States, Canada, United Kingdom, Finland, Norway, Malta, Sweden, Italy, Switzerland, Cuba, Venezuela, China, Mauritius, Kingdom of the Netherlands, Republic of Seychelles, Republic of Mexico, Panama, Iceland, Czech Republic, Bahrain, Singapore, Czech Republic, United Arab Emirates, Qatar and San Marino. The Barbados/Italy DTA now brings the number of agreements to 38.
It is expected that more of these agreements will be concluded in the near future.