Barbados is one of 102 countries that have signed on to the Organization of Economic Cooperation and Development’s (OECD) Inclusive Framework on Base Erosion and Profit Sifting (BEPS). As such, it has committed to implementing Action 5, one of the four minimum standards of the OECD’s Action plan to curtail BEPS worldwide.
As a member of the inclusive framework, Barbados was subject to a review process. In October 2017, following that process, the OECD’s Forum on Harmful Tax Practices (FHTP) determined that a number of incentive regimes used by the island to position itself as an international and financial services center were “potentially harmful”. In effect, we were found to be non-compliant with Action 5.
To avoid being classified as “harmful”, the island was required to abolish or amend several pieces of legislation. In response, the Government has proposed under a number of legislative amendments. These were announced in Parliament earlier today by Prime Minister, the Rt. Hon Mia Motley.