Caribbean Tax Treaties

• Author: Marshall Langer
• Pages: 78-90

LEGAL ISSUES IN OFFSHORE FINANCIAL SERVICES

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Caribbean Tax Treaties

Marshall Langer

Introduction

THE CARIBBEAN COUNTRIES and territories have been parties to a

surprisingly large number of tax treaties, many of which are still in force. In

earlier years, several of these treaties were extensions to Caribbean dependent

territories of tax treaties between major developed countries. Many of these

treaties remained in force after the former colonies became independent. Some

are still in force or have been replaced by new treaties between the independent

Caribbean countries and their treaty partners. It is not uncommon for tax

treaties to enter into force retroactively. A few Caribbean countries have begun

to develop a significant network of tax treaties.1

Anatomy of a Typical Bilateral Income Tax Treaty

Before discussing the Caribbean treaties, it would be helpful to outline the

Articles and provisions one would expect to find in a typical bilateral income

tax treaty. These are:

The Preamble

The treaty is concluded to avoid double taxation and prevent fiscal evasion

with respect to income taxes and, in some cases, capital taxes.

Treaty Article

1. Persons Covered - treaty applies to residents of one or both countries;

2. Taxes Covered - include income taxes and others listed;

3. General Definitions - defines person, company, enterprise, competent

authority, national, etc;