Introduction to CARICOM and its Tax Treaty Updates

CARICOM comprised 15 full members including Guyana and Belize and 13 island nations including Haiti and the Dominican Republic.

CARICOM is updating its tax treaty so that it matches international tax rules.

Background and Objectives

Ms. Evelyn Wayne, who works on economic policy at the CARICOM Secretariat, said that the CARICOM Council for Finance and Planning (COFAP) agreed to change the treaty. They want it to meet the latest global tax standards that member countries have promised to follow.

To bring the CARICOM tax treaty in line with global standards, several updates are needed.

These include allowing the exchange of tax information between countries, creating clear processes for resolving tax disputes, and adding measures to prevent tax avoidance practices like shifting profits to low-tax countries.

Key Updates and Requirements

The treaty must also ensure fair treatment for all CARICOM nationals and businesses, support the goals of the CARICOM Single Market and Economy, and follow guidelines set by the OECD.

It should also be flexible enough to include new international tax rules as they arise.

With help from the Organisation for Economic Cooperation and Development (OECD), a new part of the treaty has been created. It will allow CARICOM countries to share tax information and settle tax disputes.

Seminar and Discussions

Ms. Wayne spoke at the opening of a virtual seminar held on 19 March 2025. It focused on changes in international tax rules and what they mean for CARICOM countries. The seminar was hosted by the CARICOM Secretariat with help from several groups, including COTA, the OECD, IMF/CARTAC, and the World Bank.

Over 200 people from tax and finance departments in 21 Caribbean countries took part. They discussed fighting tax crimes and improving tax systems.

Ms. Wayne said the seminar was a chance to review tax developments and talk about how CARICOM countries can adopt new rules in a way that fits their needs. She said that since most CARICOM countries are building a shared economy, they need to use the same tax rules so that businesses and people from different countries are treated fairly.

Historical Context and Future Implications

She also mentioned the earlier Intra-CARICOM Double Taxation Agreement. It helped set the stage for tax cooperation even before the CARICOM Single Market and Economy (CSME) began.

Conclusion

The updates to the CARICOM tax treaty aim to align the region with international tax standards, ensuring fairness, transparency, and cooperation among member states. This move is crucial for the development of a unified and strong economic community within the Caribbean region.

Frequently Asked Questions (FAQs)

What is CARICOM?

CARICOM is a regional organization that comprises 15 full member states, including Guyana and Belize, and 13 island nations, including Haiti and the Dominican Republic.

Why is CARICOM updating its tax treaty?

CARICOM is updating its tax treaty to match international tax rules and standards, ensuring fairness, transparency, and cooperation among its member states.

What are the key updates to the CARICOM tax treaty?

The key updates include allowing the exchange of tax information between countries, creating clear processes for resolving tax disputes, and adding measures to prevent tax avoidance practices.

Source: CARICOM