Changes are coming to the Economic Substance Act, says Minister of Energy and Business, Senator Lisa Cummins.
She made the comments [yesterday] as she addressed the media launch of Global Business Week 2025, at the CIBC Caribbean Warrens Great House, Warrens, St. Michael. The week will be observed from October 19 to 25, under the theme Resilience: Adapting Transforming, Thriving.
Senator Cummins told her audience: “There is underway now a process of regulatory reform. You’ve seen much of this happening since last year 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 a number of the ways in which we move from being a nominal tax jurisdiction to being a preferential tax jurisdiction, and that will have significant implications, in a positive way, for the global business sector.”
The Minister shared that business facilitation was now moving into a digitised space as she pointed out that Business Barbados had partnered with Microsoft, and over the next eight months or so, they expected to transition to a new digital platform.
She stressed the importance of the creation of Business Barbados while acknowledging that it was not yet perfect.
“[Chairman of Business Barbados] Connie [Smith] and her team are steering this ship 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 re-orientation have firmly begun in Business Barbados,” she indicated.
Senator Cummins noted that the global environment is changing, and 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, what this means is that there’s fiercer competition for mandates. We have, … under the treaty negotiating team for Barbados, this year, completed negotiations with Hong Kong in just one round of negotiations.
“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.
The Minister urged all to turn the challenges into new opportunities, and commit to unlocking growth, even in these most challenging economic times.
During the media launch, President of BIBA, Marlon Yarde, described Global Business Week as an opportunity to engage, connect, and reaffirm the value of global business to Barbados. He said this country 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 attractive. This week isabout reaffirming why investors continue to choose Barbados – and how we must continue to adapt and transform to thrive,” Mr. Yarde stated.
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,” Ms. Greenidge stressed.
She noted that Barbados is a preferred choice for the captive insurance business and ranks among the top 10 captive insurance domiciles globally.