On 17 May 2019, the EU Council approved the removal of Barbados from its list of non-cooperative jurisdictions for tax purposes.
The previous version of the list which was released on 12 March 2019 asserted that the country had been deemed non-cooperative because it
“…replaced a harmful preferential tax regime by a measure of similar effect and did not commit to amend or abolish it by the end of 2019.”
The Council’s most recent press release indicates that subsequent to the March listing, correspondence was exchanged between the Barbados Minister of International Business and Industry, and the Code of Conduct Group. Pursuant to that exchange, the Council concluded that
“Barbados has made commitments at a high political level to remedy EU concerns regarding the replacement of its harmful preferential regimes by a measure of similar effect…”
As a consequence of the 17 May decision, Barbados will be moved to the “grey list” for monitoring of its progress in respect of the commitments made.
For further advice on any information provided above, please contact:
Ernst & Young Services Limited, Barbados
Maria Robinson | +1 246 430 3878
Ernst & Young LLP (US), Caribbean Tax Desk, New York
La-Tanya N Edwards | +1 212 773 3188