Barbados Finally Joins Global Tax Plan

• As the Group of 7 developed nations pushes the world towards a singular, regulated tax rate, the Organization for Economic Cooperation and Development (OECD) has got Barbados to sign on to a new tax agreement that will likely result in increased taxes for companies registered here. 
• According to a statement from the Paris, France headquarters of the OECD, on Thursday, Barbados joined “the two-pillar plan to reform the international taxation rules and ensure that multinational enterprises pay a fair share of tax wherever they operate”. 
• The island joined 132 other countries and jurisdictions participating in the agreement to establish international tax reforms based on a two-pillar package. 
• After holding out, the island has finally agreed to the plan and is bringing the OECD closer to getting all 139 countries to ink the global tax plan. 
• The lack of corporate tax enticed many multinational companies to invest and operate business from the island. However, the implementation of a minimum tax will likely result in a drop in foreign direct investment which could adversely affect employment and GDP growth.

(Source: Barbados TODAY & NCBCM Research)