Bridgetown -- June 25, 2008 -- “The Government of Barbados intends to vigorously pursue the expansion of its treaty network in 2008, in order to cultivate strategic business alliances which would benefit both this country and the other contracting states.”

This was enunciated by an official of the Ministry of Foreign Affairs, Foreign Trade and International Business following the recent signing and entry into force of a Double Taxation Agreement between Barbados and the Republic of Seychelles.

According to the official, “it is expected that more of these agreements will be concluded in the near future as Brazil, South Africa, Ireland, India, Malaysia, Nigeria, Belgium, Russia, Czech Republic, Chile, Colombia and Argentina have been targeted for negotiations”.

In keeping with the specific objectives outlined in its International Business Strategic Plan 2007-2012, on October 19, 2007, the Government of Barbados and the Republic of Seychelles signed a Convention for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income and capital gains. This agreement was gazetted by the Government of Barbados on February 28, 2008, in completion of its ratification process.

In addition, Barbados has been notified by the Government of Seychelles that on April 21, 2008, it had completed its ratification process as required by law.

The Agreement will come into force on the date of the latter notifications by the contracting parties and shall apply to income tax, on taxable income derived on or after the first day of January 2009.

Double Taxation Agreements have been recognised as one of the most effective mechanisms for developing new and strengthening existing economic ties between nations. The negotiation of these agreements is a critical element of a framework for developing substantial trading opportunities. They facilitate joint ventures, reduction in taxes and business-related costs, exchange of tax information, and reduction of fiscal impediments to cross-border trade and investment.

Barbados is seeking to promote itself as a legitimate international business and financial services centre. Its distinction as a service economy and a strategic base for onward investment into other markets has made it an attractive jurisdiction for conducting business.