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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 network."

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.”