- Barbados and other Caribbean Community (CARICOM) member states are being warned by Secretary General of the CARICOM Secretariat, Dr Carla Barnett, of the need to adapt new corporation tax rules to protect their tax base in light of new global changes.
- Barnett said the time had come for the region to review its double taxation regime and prepare to put new corporation tax rules in place in light of the changing global requirements.
- The intra-CARICOM double taxation agreement which predated the revised treaty has been deemed to be non-compliant with member states' commitments concerning the global tax governance agenda which now emphasises the exchange of tax information and tax reform to prevent evasion and avoidance, especially given the challenges emanating from the digitalisation of the global economy.
- That said, Barbados and other CARICOM member states are facing the possibility of the Organisation for Economic Cooperation and Development’s (OECD) two-pillar tax rule, which is being touted as a solution to address tax challenges arising from the digitalisation of economies. Pillar two proposes a 15% minimum global tax rate by 2023.
- Barnett also outlined several areas where she said work was progressing including the development of a regional regulatory framework to make the region a single economic space, a regional reporting system, air and maritime transport, and the free movement process, which she said has already resulted in the removal of hundreds of restrictions on the movement of goods across the region.
(Source: Barbados Today)