SIGNING CEREMONY BETWEEN GHANA AND BARBADOS

The Barbadians and the Ghanaian Minister of Finance and Economic Planning, Hon. Kwadwo Baah Wiredu signed a tax convention between Barbados and Ghana. The convention concerns the taxes on income and on capital gains and is intended to avoid double taxation, to prevent fiscal evasion and to provide for an exchange of fiscal information and for the possibility of assistance in the collection of taxes.

The Hon. Minister of Finance and Economic Planning signed on behalf of the government and Hon. Christopher P. Sinckler signed on behalf of the government of Barbados.

The convention improves the conditions for investments in Ghana, which can benefit the further economic development of Ghana. Especially the certainly with respect to the tax treatment of income and capital is important for companies that want to invest in Ghana. Moreover, generally a tax treaty reduces the taxpayers’ administrative burden, because it is no longer necessary to report items of income in both countries.

The Hon. Minister said the convention primarily aims to contribute to the further development of the economic relations between Barbados and Ghana and to promote the mutual investments between both countries. He further said that it constitutes a complement to the investment protection agreement recently concluded which contains binding engagements regarding the treatment of Barbados investments in Ghana and vice versa. The convention has yet to be submitted for parliamentary ratification in both countries.

He concluded by saying Ghana retains the right to tax profits made with building sites, construction, assembly or installation projects or supervisory activities if these activities last more than nine months.

END.