Announcements

(Bridgetown, BARBADOS September 24, 2024) In a significant step towards strengthening global tax cooperation, Barbados joined several jurisdictions in signing the Multilateral Convention to Facilitate the Implementation of the Pillar Two Subject to Tax Rule (STTR MLI). This agreement seeks to ensure fairer and better international tax arrangements, particularly for developing countries. The signing took place in Paris, France with Minister in the Ministry of Finance, Ryan Straughn representing Barbados at the ceremony. 

Addressing the members from over 57 countries Minister Straughn noted that Barbados has been a committed partner and highlighted that small and vulnerable states have to be a part of the process. He also thanked members for understanding that the impact of the reforms is much more acute than for large states, as smaller ones enable these global changes. He further noted that the corporate reform and Barbados’ compliance, signals a new level of confidence for business and investors alike. 

At the ceremony nine participating jurisdictions signed the STTR Multilateral Instrument, 10 participating jurisdictions signed a letter of intent to sign the STTR Multilateral Instrument as soon as possible. Twenty-four participating jurisdictions, that are not in scope of the STTR commitment, signed a statement of support, and 14 jurisdictions, that chose not to implement the STTR via the STTR Multilateral Instrument at this stage, joined the ceremony as participants.

Minister Straughn also held an introductory bilateral meeting with Mathias Cormann, OECD Secretary-General, and Manal Corwin, Director of the Centre for Tax Policy and Administration, who signaled the OECDs commitment to strengthening ties with Barbados through both tax and non-tax initiatives.  Minister Straughn spoke of Barbados’ commitment to enabling global tax compliance and strengthening areas for growth and investment for Barbados.

During the ceremony, OECD Secretary-General Mathias Cormann said, “Today’s signing ceremony is a further significant milestone in the implementation of the Two-Pillar Solution to stabilise the global tax landscape, to reduce the incentive for multinationals to profit shift, curb harmful tax competition, remove inappropriate pressure on countries to offer low or no corporate tax arrangements in return for investment and help to generate important additional revenues for governments around the world.”

The STTR is a vital component of the OECD/G20 Inclusive Framework on Base Erosion and Profit Shifting (BEPS). It aims to address the issue of low or no taxation on cross-border payments by ensuring a minimum level of tax of 9% on certain income streams. The STTR is designed to prevent situations where income escapes appropriate taxation due to discrepancies in tax regimes.

The signing marks a milestone in Barbados’ ongoing commitment to fair taxation, reducing profit shifting, and curbing harmful tax competition. As an early adopter, Barbados sets a precedent for countries to follow, in order to allow developing countries to protect their taxing rights and secure sustainable revenue streams for the future.

The full session can be viewed on https://www.youtube.com/watch?v=G5BEfqpQCz0