Announcement (Press Release) - Member Firm
Canada/Bahamas TIEA Comes Into Force
A Tax Information Exchange Agreement (“TIEA”) signed on Thursday, June 17, 2010 between The Bahamas and Canada came into force on November 16th 2011.
The TIEA gives significant advantages to Canadian companies which set up offices in The Bahamas. In the words of Deputy Prime Minister Brent Symonette when he signed the treaty: “Once this agreement enters into force it will extend exempt surplus treatment to dividends paid to a Canadian parent corporation by its foreign affiliates resident and carrying on business in The Bahamas, allowing such dividends to be exempted from tax in Canada” The TIEA will ensure that the dividend profits of Bahamian companies with Canadian parents are only taxed upon repatriation to Canada. It will allow Canadian companies to take advantage of the human resources and infrastructure which the country offers and does not impose significant conditions on the Bahamian affiliates. The Bahamas has long-standing economic link s to Canada, particularly in the financial services and hospitality sectors and it is thought that the TIEA will further cement the relationship between the two countries.
The Bahamas now has signed 28 TIEAs altogether including 18 with OECD member countries (i.e. Finland, Denmark, Sweden, Belgium, New Zealand, Iceland, Norway, Germany, the United States, the United Kingdom, Canada, the Republic of China, Japan, Australia, Argentina, France, Mexico, and Korea) and ten (10) with members of the G-20 (i.e. the United States, the United Kingdom, Canada, the Republic of China, Japan, Australia, Argentina, France, Mexico, and Korea).
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