BRIDGETOWN, Barbados, CMC -The Minister in the Ministry of Economic Affairs and Investment, Chad Blackman, Monday said that Barbados, as a mature tax jurisdiction, must continue to be a “beacon” in the Americas.
Delivering the feature address at the Barbados Revenue Authority’s Global Tax Update hybrid session, Blackman said that Barbados, as a mature and well-developed tax jurisdiction, was a member of the Global Forum of the Inclusive Framework on Base Erosion and Profit Sharing.
He told conference delegates that the island, as a member, would work closely with the Global Forum to implement initiatives aimed at promoting tax transparency, eliminating tax evasion, and eliminating aggressive tax avoidance schemes that shift profits from one jurisdiction to another and erode the tax base of multinational enterprises.
The conference is hosted with Invest Barbados, the Barbados International Business Association, the International Business Unit, and the Institute of Chartered Accountants of Barbados.
Blackman said that a statement last November by Prime Minister Mia Mottley to reform the country’s corporate tax structure was aimed at modernizing corporate income tax and aligning the corporate tax framework with the Organization for Economic Cooperation and Development (OECD) inclusive framework on Pillar 2.
“To avoid doubt, the Government of Barbados is determined to ensure a conducive business environment for businesses, which includes compliance with international standards, appropriate levels of taxation, and compatible tax incentives to foster growth and employment in the country.
“You have heard in our recent Budgetary Proposals about the importance of growth for the economy, about looking for new areas of growth, and about how we enlarge that pie in a way that is also sustainable for the country going forward,” Blackman said.
Blackman said that following the November 7 Ministerial Statement by Mottley, two draft bills have since been laid in Parliament for consideration,
He said the Barbados Income Tax Act amendments include “several refundable tax credits, focusing on job creation and research and development activities.
“The proposed amendments are intended to maintain Barbados’ attractiveness as an international financial service center while honoring our international tax commitments. Notably, and more importantly, the pending corporate tax reform supports the Government’s agenda and is, therefore, aimed at promoting long-term sustainable development.
“It is also consistent with the themes of the 2024 Budgetary Proposals with respect to growing the Barbados economy, so as to ensure that Barbados is not only resilient from an economic perspective but that our citizens and those who reside and do business here can also be resilient,” Blackman added.
Blackman said that as countries continue to deal with ongoing crises in the developed world, countries like Barbados must examine ways to reposition themselves while looking forward to the future.
The minister said the forum was necessary to update Government and business stakeholders on the imminent changes to Barbados’ corporate tax landscape.
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