BARBADOS

Investment & International Business Opportunities

Jean-Paul Cumberbatch

Regional Business Development Advisor

Invest Barbados

Why Barbados?Why Barbados?

• Attractive business structuring opportunitiesAttractive business structuring opportunities• Access int’l markets using Double Tax TreatiesAccess int’l markets using Double Tax Treaties• Similar time zones to US and Latin AmericaSimilar time zones to US and Latin America• Attractive place to live & workAttractive place to live & work• No restriction on Foreign OwnershipNo restriction on Foreign Ownership• High Quality LifestyleHigh Quality Lifestyle• Low Crime RateLow Crime Rate• Very safe part of the worldVery safe part of the world

Why Barbados?Why Barbados?

• Barbados Company pays a maximum of 2.5% Barbados Company pays a maximum of 2.5% on international income;on international income;

• Savings protected using Barbados’ double tax Savings protected using Barbados’ double tax treaty with the UKtreaty with the UK

• Repatriation of dividend income tax free in UKRepatriation of dividend income tax free in UK

• Lower withholding tax rate on dividends paid out Lower withholding tax rate on dividends paid out to UK shareholders to UK shareholders

• No capital gains or inheritance tax in BarbadosNo capital gains or inheritance tax in Barbados

Why Barbados?Why Barbados?

• Non Dom Residents can claim foreign currency Non Dom Residents can claim foreign currency tax credits & pay income taxes as low as 2% on tax credits & pay income taxes as low as 2% on foreign income remitted to Barbados;foreign income remitted to Barbados;

• Not taxed on unremitted foreign incomeNot taxed on unremitted foreign income

• Withholding tax on foreign income effectively Withholding tax on foreign income effectively 0%0%

• Achieve significant cost savings-Barbados Achieve significant cost savings-Barbados wages are typically less than a half UK wageswages are typically less than a half UK wages

Barbados : Reputable Jurisdiction

• The OECD in April 2009 recognized Barbados as a “white listed” jurisdiction

• US’s IRS recognize Barbados Companies as “Qualified Foreign Corporations”.

• Canadian Revenue Agency (CRA) confident in Barbados.

• UK’s HMRC – Does not view Barbados as a tax haven

• OECD has acknowledged that Barbados is not a tax or secrecy haven, but a respected and well regulated international financial services centre

Barbados’ Treaty PartnersDOUBLE TAXATION

• USA• CANADA • SWEDEN • NORWAY • FINLAND • BOTSWANA • AUSTRIA • SWITZERLAND • CARICOM• CUBA• VENEZUELA• CHINA• UK• MALTA• MAURITIUS• NETHERLANDS• MEXICO• SEYCHELLES• LUXEMBOURG• SPAIN• PANAMA• GHANA*• PORTUGAL*• CZECH REPUBLIC*• ICELAND*

* Signed but not yet enforced

BILATERAL INVESTMENT

• CANADA• GERMANY• ITALY• SWITZERLAND• CUBA• VENEZUELA• CHINA• MAURITIUS• UNITED KINGDOM• GHANA*• BELGIUM-LUXEMBOURG

TREATY NETWORK DEVELOPMENT

Proposed Tax Treaties– Italy (awaiting signature)– Vietnam (awaiting signature)– Belgium (awaiting signature)– Chile (Initialled)– India (1st round of discussions held in 2007)– Brazil (date to be agreed )– Malaysia (date to be agreed)– South Africa (date to be agreed)– Ireland (date to be agreed)– Australia (date to be agreed)– Colombia (date to be agreed)

Tax Efficient Vehicles

• International Business Companies

• Exempt Insurance Companies

• International Banking

• Domestic and International Trust

• Societies with Restricted Liability

• Ship Registration

• Mutual Funds

Barbados Incentive LegislationBarbados Incentive Legislation

• International Business Companies Act;International Business Companies Act;

• International Societies with Restricted International Societies with Restricted Liability Act;Liability Act;

• International Financial Services ActInternational Financial Services Act

• Exempt Insurance Companies Act;Exempt Insurance Companies Act;

• International Banks; and International Banks; and

• Trust ActTrust Act

Other Incentives for International Business & Financial Sector

• No restriction on foreign ownership

• Full exemption from import duties on components, raw materials, production machinery

• Full and unrestricted repatriation of capital, profits and dividends during their tenure in Barbados.

• Exemption from exchange control

• No minimum capital requirement

Track Record for Attracting FDI• Over 5000 Financial Service Companies present.

• Barbados is 3rd largest recipient of Canadian outward investment behind USA and the UK

MAJOR COMPANIES IN BARBADOS

• Ernst Young Marsh

• KPMG Aon

• Pricewaterhousecoopers CIBC Offshore Bank

• Deloitte Swiss Re

• Amicorp Cidel Bank & Trust

• Tricor Gildan

• Lenstec CITCO

Barbados’ Location• Very safe part of the world

• Similar time zone to Eastern USA

• Good contact point Linking North and South America

• 7 hours from London 4.5 from New York, 3.5 from Miami

• Daily non stop flight

Country Profile

• Size: 166 sq. miles/430sq.km

• Language: English

• Government: Democratic

• Population: 276,300 (2010)

• Workforce: 142,100 (2010)

• Per Capita Income £8271 (US$13, 300) (2010)

Major Business Sectors-2010

Sectors

Wholesale & RetailBusiness & FinanceTourismConstructionManufacturingGeneral ServicesAgriculture

GDP Contribution

21.8%19.0 %14.8% 6.0% 4.7% 6.4% 4.4%

Political and Legal System• Independent since 1966.

• Second oldest democracy in the Western Hemisphere.

• Long history of economic, social and political stability.

• Well-developed legal system derived from

English common law and statutes.

• Corporate law is based on the Canadian Business Corporation Act.

Education• University of the West Indies – 5000

students

• Education based on British model. Primary to tertiary levels is free to all citizens .

• Literacy rate of 98 per cent. • A high level of productivity.

Banking & Finance• Foreign exchange control regulations-

international businesses are exempted

• Well-established commercial banking sector

• 3th soundest banking system in the Caribbean & LA (Global Competitiveness Report 2011/12)

Professional Services

• Legal services– Good base of well-educated, English-

speaking professionals familiar with UK legal system

• Accounting services - Big 4

• 600 members of Institute of Chartered Accountants, can provide full range of services

Investment opportunities

• Prominent areas of focus are :

- International Business and Financial Services

- Information Technology

- Tourism

- Services Exports

International Competitiveness• 3rd in human development in the Caribbean & LA (United

Nations Human Development Index 2011)

• 1st in network readiness in the Caribbean & LA (World’s economic Forum’s Information & Technology report 2010/2011)

• 2nd in Transparency/Freedom from corruption in the Caribbean & LA (transparency International’s Corruption Perception Index 2010)

• 2nd freest economy in the Caribbean & LA (Index of Economic Freedom,2011/12)

• 3rd in Global Competitiveness in the Caribbean & LA (Competitiveness Index 2010/2011 Global Competitiveness Report)

• 3rd in Soundness of Banks in the Caribbean & LA (Global Competitiveness Report, 2011/12)

Invest Barbados: Your Business Facilitator

• Provide information on Social, political & economic life of the country

• Advise on legislation relating setting up business• Liaison between investor & appropriate

government agencies• Consultation with the investor• Facilitate investor visits

1 Great Russell Street, London, WC1B3NDTel: 0207 299 7196Email: London@investbarbados.org