Business Barbados 2022

Awaiting a Date for Entry into Force The Barbados/Slovak Republic DTA was signed on October 28th, 2015. Barbados and the Slovak Republic have completed their ratification procedures. Barbados is awaiting official notification from the Slovak Republic on the determination of the date for entry into force of the Agreement. The Protocol to the Barbados/Republic of Mauritius DTA was signed on December 6th, 2017. Barbados and Mauritius have completed their ratification procedures. Barbados is awaiting official notification from Mauritius on the determination of the date for entry into force of the Agreement. Awaiting ratification Four (4) DTAs and one Protocol await ratification and are outlined below on page five (5): The Barbados/Rwanda DTA was signed on December 22nd, 2014. Barbados has completed its ratification procedures and awaits official notification from Rwanda on the status of its ratification procedures. The Barbados/Ghana DTA was signed on April 22nd, 2008. Barbados has completed its ratification procedures and awaits official notification from Ghana on the status of their ratification procedures. The Protocol to the Barbados/Botswana DTA. This was signed on September 4th, 2014. Barbados has completed its ratification procedures and awaits official notification from Botswana on the status of its ratification procedures. The Barbados/Kenya DTA was signed on December 11, 2019 and is awaiting ratification. Awaiting signature Three (3) initialled DTAs with Malaysia, Belgium and Vietnam are awaiting signature. In January 2018, Barbados signed on to the Multilateral Convention to Implement Tax Treaty Related Measures to Prevent Base Erosion and Profit Sharing (MLI). Barbados has deposited its Instrument of Ratification for the Multilateral BEPS Convention which has entered into force on April 1, 2021. Countries indicated with an asterisk (*) above are also signatories of a Bilateral Investment Treaty (BIT) with Barbados. This combination of double taxation, investment treaties and tax incentives make Barbados unique within the Caribbean and particularly attractive to foreign investors. As indicated in the previous table, in addition to its extensive network of DTAs, Barbados also has BITs with several important jurisdictions. These BITs provide benefits and protections for cross border investments including: • Investment promotion and protection • Provision of compensation for losses • The granting of most-favoured nation and national treatment • Provisions • Protection from unfair expropriation and nationalisation of • Investment • Procedures for the fair and equitable settlement of disputes arising • Procedures for the timely repatriation of investment and returns • Procedures for prompt transfer of funds • Subrogation. Note that Barbados has also entered into a BIT with Germany. BITs are also pending with Ghana and Luxembourg and are awaiting ratification TRADING PARTNERS Special trading arrangements have been entered into with other jurisdictions. These can be summarised as follows: CARICOM Allows products manufactured in Barbados and other CARICOM member states to be exported among member countries free of customs duty, provided all qualifying conditions are met. In addition, CARICOM has already signed or is currently negotiating trade agreements with the Bahamas, Colombia, Costa Rica, Cuba, Dominican Republic, and Venezuela. ECONOMIC PARTNERSHIP AGREEMENT Among other things this agreement removes all quotas and tariffs from Caribbean exports to the EU, with the exception of sugar and rice, both of which will be liberalized over time. The EU has also agreed to open up new markets for Caribbean companies and professionals offering services to Europe, and to permit young services professionals to gain work experience in the European market. Caribbean countries which are signatory to the agreement have agreed to gradually open their markets to European exports over the next 25 years. CARIBBEAN BASIN TRADE PARTNERSHIP ACT (CBTPA) Duty free export of some products to the USA market. CaribCan (Caribbean-Canada) Duty free export of some products from the Commonwealth Caribbean into the Canadian market. SHIPPING The Shipping Incentives Act, of 1982, provides concessions to shipping companies engaged in the operation of passenger carrying ships, leasing of ships, shipbuilding, maintenance or repair. The concessions include a 10-year exemption from tax and customs duties on all materials connected with the company’s shipping activities. It should be noted that following the 2017 Report of the OECD, this regime is in the process of being eliminated. REAL ESTATE Buying and selling property in Barbados There is no restriction on the purchase of property in Barbados by persons who are not citizens or permanent residents. These funds must be registered with the Central Bank of Barbados and the permission of the Exchange Control Authority obtained for the sale or purchase of property by a non-resident whether such non-resident is a Barbadian citizen or not. 121 BUSINESS BARBADOS 2022 B U S I N E S S B A R B A D O S F A C T F A C T S G U I D E 2 0 2 2