New US – Barbados Tax Treaty Excellent For Barbados

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).

Previous BFP Story: Canadian Government Targets Barbados Offshore Banking

2 Comments

Filed under Barbados, Business & Banking

2 responses to “New US – Barbados Tax Treaty Excellent For Barbados

  1. Hants

    This is great news. Hopefully the Canadian PM will follow the Americans and back off his attack on Tax Havens.
    Barbados needs all the help it can get.

  2. reality check

    strategic move by US after changing the treaty protocol earlier this year where IBC’S were disallowed portfolio debt exemptions

    its called remove a lot give a little–

    besides Barbados is succumbing to the active flirtations of Madame China—can’t have that!!!

    Barbados wins a small but maybe important chip?

    Canada can’t be happy with what it sees is going on in Barbados. It will be interesting to see how events unfold