BRIDGETOWN, Barbados, CMC – The Barbados government has hinted at the possibility of changes being made to the Economic Substance Act, changing the number of ways in which the island moves from being a nominal tax jurisdiction to being a preferential tax jurisdiction
Energy and Business Minister Lisa Cummins, addressing the media launch of Global Business Week 2025, said a regulatory reform process is underway.
“You’ve seen much of this happening since last January, when we had the corporation tax reform. And I’m happy to share with you, if it has not already hit your desk, that the (new) Economic Substance Bill is going to be coming up for consultation on some changes that are going to come down the pipe.
“Together with the International Business Unit and the Barbados Revenue Authority, we are going to be making some changes to the Economic Substance Act, and that will change several things about how we move from being a nominal tax jurisdiction to being a preferential tax jurisdiction, and that will have significant implications, positively, for the global business sector,” Cummings said.
Global Business Week will be observed from October 19 to 25, under the theme ”Resilience: Adapting, Transforming, Thriving”.
Cummins said business facilitation was now moving into a digitized space, noting that Business Barbados had partnered with Microsoft and expected to transition to a new digital platform over the next eight months.
She noted the importance of the creation of Business Barbados, acknowledging that it was not yet perfect. She also recognized that the chairman of Business Barbados, Connie Smith, and her team are steering this initiative in the right direction, but it will take time.
“ In rearing a child, you don’t change behaviour overnight. It takes some time, training, and reorientation, and that training and reorientation have firmly begun in Business Barbados,” she said, noting that the global environment is changing. It is challenging because a slower and more fragmented world economy is being seen.
“It’s reducing trade, closing borders, and dampening investment. For Barbados, this means fiercer competition for mandates. We have, under the treaty negotiating team for Barbados, completed negotiations with Hong Kong this year in just one round of the talks.
“So, we have a new double taxation agreement with Hong Kong that is now going through the system, and we have also completed, in another single round, negotiations with Curaçao. We have new double taxation agreements that I’m hoping that, together with the business community, we can merge into a bilateral investment treaty and create opportunities for global business to grow,” she said.
Cummings urged all stakeholders to turn the challenges into new opportunities and commit to unlocking growth, even in these most challenging economic times.
Barbados International Business Association (BIBA) President Marlon Yarde described Global Business Week as an opportunity to engage, connect, and reaffirm the value of global business to the Barbadian economy. He said Barbados remains a trusted business environment for international investors.
“Our location, infrastructure, and skilled workforce make us competitive. Our stability and access to international markets make us a strong and attractive option. This week is about reaffirming why investors continue to choose Barbados – and how we must continue to adapt and transform to thrive,” Yarde said.
The Chief Executive Officer of Invest Barbados, Kaye-Anne Greenidge, underscored the importance of the global business sector.
“Beyond the critical role it plays in positioning Barbados regionally and internationally as a jurisdiction of choice, the sector is equally important to us here at home. It creates jobs for Barbadians, facilitates the transfer of skills, strengthens our professional services, and contributes directly to sustainable economic growth for our country. These are real and measurable benefits that impact families, communities, and the wider nation,” Greenidge said.
She noted that Barbados is a preferred choice for the captive insurance business and ranks among the top 10 captive insurance domiciles globally.
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