After rumblings last week that the Canadian government is targeting Barbados for some tough new tax laws, we now receive news that the United States has cut the witholding tax in half for dividends.
What do I know about international investing? Nothing… but the CBC says that this is good for Barbados. Congratulations to the government and our negotiators…
From the CBC…
Barbados has been made a more attractive jurisdiction for investment by companies doing business in the United States.
That is because the US Inland Revenue Service has now deemed the island a “satisfactory” jurisdiction, allowing local firms to benefit from a reduced withholding tax of 15 per cent on dividends. That is half of what it used to be.
Barbados’ lead tax treaty negotiator, Francoise Hendy, says the outcome is a direct result of the successful re-negotiation of a 1984 Barbados/ US double taxation treaty.
… read the full story (link here).
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