Barbados, China Sign Protocol To DTA
Monday, February 15, 2010
Relations between Barbados and the People's Republic of China will be enhanced,
and new business opportunities created, with the February 10 signing of a Protocol
to amend the existing Double Taxation Agreement (DTA) the two countries share.
Minister of International Business and International Transport, George Hutson,
and China's Ambassador to Barbados, Wei Qiang, initialled the document,
which amends the existing 10-year old Convention for the Avoidance of Double
Taxation and the Prevention of Fiscal Evasion with Respect to Taxes on Income.
The agreements incorporate changes to China's domestic
law, while improving the treaty-based mechanism for tax information exchange.
Commenting, Hutson said: "I am aware that there has been much speculation
about this protocol as to what the changes, as agreed, may mean for eligible
taxpayers in our two countries. However, I am satisfied that taxpayers will
find that our treaty. with the additions contained in this protocol, remains
clear, certain and full of opportunity for the avoidance of double taxation
with respect to income on capital.
"Importantly, the protocol makes abundantly clear our commitment to internationally
accepted principles of transparency and tax information exchange, to which we
have agreed. I am, therefore, pleased that in this regard, we are able to bring
the language of this treaty into conformity with [existing rules] in our tax treaty
Explaining the need for amending the agreement, Wei said: We wanted
to take into account the new circumstance we've come to face and to have the
agreement fully meet its objectives. Now, with today's signing ceremony, and
thus the conclusion of this protocol to the agreement, I think we can safely
say that new horizons have been opened for our entrepreneurs in both countries
to explore and exploit their business opportunities in a sound and confident
manner for the benefit of both sides.