Barbados, a jurisdiction that facilitates businesses of substance, is among a few Caribbean countries that has been removed from the European Union’s (EU) tax haven blacklist.
Barbados, along with other countries, was added to the list in March of this year, based on EU concerns in relation to the country’s tax regime. In January of this year, however, Barbados became one of the first countries in the Caribbean to overhaul its tax system, including converging its domestic and international tax rates, and thereby fulfilled its commitment to be compliant with the Organisation for Economic Cooperation and Development’s (OECD) Base Erosion and Profit Shifting (BEPS) Action 5 Initiative, addressing harmful tax practices.
Barbados has committed to addressing the EU’s concerns, and as such, has been placed on a “grey-list” in the interim.
Barbados’ Minister of International Business and Commerce, Hon. Ronald Toppin expressed pleasure at the news of the country’s removal from the blacklist.
“…No country wishes to be on any blacklist, especially a country like Barbados which takes its character and reputation in the international community very seriously.
Hence, after discussions between the Ministry of International Business and the EU, at the technical level, we were able to reach agreement on the way forward.
We, in the Ministry of International Business, express sincere thanks to the business community and the private sector for staying the course with us and for the confidence they reposed in the Government of Barbados in its handling of this matter.”
The other Caribbean countries that were removed from the EU’s blacklist include Aruba and Bermuda.