Barbados and Canada have a very robust international enterprise courting with the island acting as Canada’s offshore commercial enterprise hub. The robust relationship among the 2 countries is going back to British colonial times and has flourished into an critical partnership for both nations.
Barbados – Canada Relationship Facts
Canada presents the biggest supply of Foreign Direct Investment to the Barbadian economic system
Barbados is the third biggest recipient of Canadian international funding after the usA. And the U.K.
Canadians represent seventy five% of the worldwide economic community in Barbados
Canadian banks with a robust presence in Barbados encompass RBC Royal Bank, Scotiabank and CIBC FirstCaribbean Bank.
Barbados – Canada Tax Treaty Benefits
The Barbados – Canada tax treaty has been in area for over three a register business hong kong long time and plays a key function in facilitating the close global commercial enterprise courting among the 2 countries. The treaty manner that Canadian businesses registered in Barbados might also legally benefit from the many blessings granted to international agencies registered on the island.
The treaty offers the subsequent advantages to Canadian groups registered in Barbados:
A low tax rate of two.5% down to 1% on taxable income
Capital gains are tax exempt
No withholding taxes on royalties, dividends, hobby or control costs for non-citizens
No trade controls on foreign forex transactions
Exempt from import obligations and taxes on machinery, substances, plant and system
No capital requirements
Additional advantages offered via Barbados as an worldwide business hub include:
Highly knowledgeable body of workers available to offer control, accounting and legal services
Well advanced infrastructure inclusive of great street community, international airport and high high-quality telecommunication offerings
Many taxation treaties global permit organizations to benefit from the treaty community
Long-term political and economic stability
Low value to sign in and run an worldwide business
Offshore Business Qualification Requirements
For Canadian corporations to take advantage of the extremely good blessings provided by way of registering an offshore business in Barbados, the new commercial enterprise must meet the following necessities to satisfy Barbadian guidelines and people of the Canada Revenue Agency:
Mind and control ought to be located in Barbados
Registered as an International Business Company
The majority of the Board of Directors have to be non-citizens of Canada
Annual board meetings in Barbados
May exchange international, but restrained from selling goods in Barbados and Canada
Employees should be positioned in Barbados, no longer in Canada
Annual audit required for a employer with extra than US $500,000 in revenues or belongings
Low Costs, Great Value!
The costs involved in putting in offshore in Barbados are relatively low. The fee of incorporation, prison recommendation and registration expenses overall between US $2,500 and US $five,000.
The annual prices to run the commercial enterprise, pay license costs and have an audit carried out if important can overall as little as US $20,000.
This is exceptional value for corporations seeking to extend the world over. Choosing Barbados method that Canadian companies can legally lessen their international tax burden in a safe, well-regulated business environment.
This outstanding combination of factors is the purpose that Barbados is the pinnacle Caribbean offshore destination for Canadian worldwide commercial enterprise and overseas direct funding.