Yesterday, Vice President of Panama, Mr. Juan Carlos Varela and Barbados’ Minister of International Business and International Transport, Mr. George Hutson signed the Barbados Panama Double Taxation Agreement (DTA). The treaty, which provides for the avoidance of double taxation and fiscal evasion with respect to taxes on income, was signed during a ceremony at the Hilton Barbados Hotel.
In his remarks, Minister Hutson noted, “the signing of this agreement symbolizes the continuous efforts of this government to strategically augment its capacity as a primary International Business and Financial Centre.” He further explained that the agreement “will be a vital mechanism for a reciprocal and mutually beneficial framework in matters of international taxation. The signature of this DTA is, however, not only a demonstration of Barbados’ dedication to expanding its tax and investment treaty network. I believe that this signing sends a very powerful signal that Barbados and Panama possess the determination and vision as developing countries, to build stronger political and economic relationships, which will enable us to be more competitive on the international trading stage.”
Vice President Varela highlighted the positive contribution made by Barbadians and their descendents who settled in Panama and became integrated into the society there. He assured that the government of Panama will continue to work towards the improving the economic, political and cultural ties between Panama and Barbados. He also said that the DTA will serve to strengthen commercial relations between the two countries.
It is estimated that 60,000 Barbadians emigrated to Panama during the early 1900s to assist with the construction of the Panama Canal. Most of those emigrants remained in Panama.
Barbados and Panama are both members of the Organisation of American States. Diplomatic relations between the two countries were formally established in 1975.
The signing of the Barbados Panama DTA brings the total of DTAs that Barbados has signed to 21.