GLOBAL MOVE

As of December 31st, 2018, the Ministry of International Business and Industry, through its International Business Unit, will cease to issue International Business Company licences and International Societies with Restricted Liability licences.

This will, in effect, close off these regimes as the IBC Act will be repealed and the SRL Act will be amended to give effect to the end of new International Societies.

Word of this came from Minister of International Business and Industry, the Hon. Ronald Toppin, during the opening of the 10th International Business Week Conference, held at the Lloyd Erskine Sandiford Centre (LESC) yesterday.

He was at the time reiterating Barbados’ commitment to implementing Action 5 on Harmful Tax Practices of the Organisation for Economic Cooperation and Development’s (OECD) Base Erosion and Profit Shifting (BEPS) project, as well as the ongoing economic recovery transformation programme, which has caused them to critically examine their systems with a view to understanding how they contribute to Barbados’ overall competitiveness or the lack thereof and improving them.

The Minister therefore highlighted some of the changes that, subject to the approval of Cabinet, will be soon implemented during the transition from an International Business Sector mindset to a global business ethos.

“A new regime will be rolled out in January 2019 which will seek to maintain, as far as possible, the current benefits to the industry. Again, the details will be taken to Cabinet, hopefully, next week,” he indicated.

“What I will say, is that shortly we will be announcing the nuances of the transition process and two new vehicles that will be used to traverse this global arena.”

Toppin also disclosed the proposal that the Foreign Currency Earnings Credit be abolished, and that Barbados will be moving to a regime which will see the convergence of tax across all business entities.

“The details are still being assessed and various modules are currently being run. What I can state is that the new rate will remain competitive and ensure that those international businesses which are here will continue to benefit from certain incentive,” he assured.

According to the International Business Minister, Action 5 of BEPS has afforded Barbados the opportunity to critically examine important aspects of its ease of doing business.

“And, so, the response thereto is not only to address BEPS concerns, but to enhance and improve areas such as the use of technologies and improvements to our regulatory regime, the Companies Act and the Foundations Act, to name a few.”

Toppin also took the opportunity to make it clear that last week’s OECD article relative to the avoidance of the Common Reporting Standard (CRS) by individuals who seek to exploit citizenship by investment schemes was not a blacklist.

“Barbados’ High Net Worth Individual (HNWI) Special Entry Permit (SEP) regime was identified as one which poses a potential threat. That article was not a blacklist and Barbados has not been blacklisted by the OECD,” he stressed.

“I also categorically re-enforce that Barbados never had and does not have a citizenship by investment programme.” (TL)