Barbados has successfully passed a key international evaluation, reaffirming its commitment to combating harmful tax practices and upholding global financial standards.
The Organisation for Economic Co-operation and Development (OECD) has officially recognized the island’s progress in meeting international tax regulations. According to its latest peer review—conducted through the Forum on Harmful Tax Practices (FHTP)—Barbados has fully complied with the standards set under Base Erosion and Profit Shifting (BEPS) Action 5.
This milestone, highlighted in the December 16, 2024, OECD publication Harmful Tax Practices – 2023 Peer Review Reports, confirms that Barbados requires no further improvements at this time. The OECD reaffirmed this achievement on February 5, 2025, following its annual monitoring process, with the results formally approved by the Inclusive Framework on BEPS on January 31.
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A Commitment to Global Standards
The Barbados Revenue Authority (BRA), the nation’s lead agency for tax information exchange, explained that BEPS refers to tax avoidance strategies that shift profits to low-tax jurisdictions. The OECD estimates that such practices cost countries between US$100 billion and US$240 billion in lost tax revenue annually—equivalent to 4% to 10% of global corporate income tax revenue.
As a member of the Inclusive Framework, Barbados has pledged to uphold four key OECD standards:
- Action 5 – Eliminating Harmful Tax Practices with Transparency and Substance
- Action 6 – Preventing Treaty Abuse
- Action 13 – Enhancing Transfer Pricing Documentation & Country-by-Country Reporting
- Action 14 – Strengthening Dispute Resolution Mechanisms
The recent OECD review confirms that Barbados successfully met all the requirements under Action 5 for 2023. The country also maintains international agreements for the exchange of tax information with 40 jurisdictions, including the Multilateral Convention on Mutual Administrative Assistance in Tax Matters.
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A Strong Global Standing
The OECD noted that no additional exchanges of tax information were required in 2023 and that Barbados continues to meet all compliance benchmarks. The report also reaffirmed that past rulings remain in good standing and that Barbados has met all terms of reference for tax transparency and information exchange.
With this latest endorsement, Barbados strengthens its reputation as a responsible financial jurisdiction, reinforcing its position as a trusted player in the global economy.
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