Wednesday 19 December, 2018

VIDEO: BIBA, Private sector hope practice directions come soonest

Julia Hope, BIBA President, believes the direction practices for the new tax ranges are being looked over this weekend.

Julia Hope, BIBA President, believes the direction practices for the new tax ranges are being looked over this weekend.

Barbados takes a huge tax step this week and members of the international business sector and private sector are anxiously awaiting the documents outlining the way forward.

The Barbados International Business Association (BIBA) held a Mix and Mingle last evening to players in the international and local business sector to network and share their thoughts on the new developments.

Offered very tongue-in-cheekily as an icebreaker topic was ‘Tax Convergence’.

BIBA President Julia Hope said that this area of business was taking priority amongst the sector currently as they await the next step.

 

This comes days after Prime Minister Mia Mottley disclosed in Cabinet that:

“…going forward, all companies will become regular Barbadian companies as the Minister of International Business has already advised the Barbadian public in the last week.

"Consequently, before December 31st 2018, we will abolish the International Business Companies Act and the Societies with Restricted Liability Act. The Government will not issue any new IBC or ISRL licences.

"We will also repeal the Exempt Insurance Act and all Insurance entities will now fall under an amended Insurance Act that will now provide for three classes of licences, including one for Captives which will continue to pay a licence fee and be zero taxed.

"By January 1st 2019, all IBCs and ISRLs will automatically by operation of law become Regular Barbados Companies and Societies and be able to conduct business locally, regionally and internationally. Those companies with 100% foreign currency earning will receive a Foreign Currency Permit giving them the same exchange control exemptions they have benefited from before. Those IBCs and ISRLs that qualify for grandfathering are entitled to be so grandfathered until June 30th 2021.

"Barbados will be one of the first countries to converge its local and international tax rates.”

Hope told the gathering that since Prime Minister’s announcement on Tuesday, there have been several lengthy meetings of the Private Sector with the BIBA Task Force to deal with the transition and practice directions.

She said that hope was to have the directions by close of business yesterday, Friday, November 23, 2018, ahead of the Mix and Mingle start time of 6:00 pm said Friday night, but it appears they may come next week.

 

 

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