In recent years, several Caribbean jurisdictions have been revising their IBC rules and regulations to enhance transparency and comply with international standards established by organizations like the OECD, EU, and FATF. These changes aim to address concerns related to tax evasion, money laundering, and terrorism financing. Some of the key changes in IBC rules in the Caribbean up until 2021 included:
- Substance Requirements: Many Caribbean jurisdictions have introduced economic substance requirements for IBCs. Companies are now required to demonstrate that they have adequate management, control, and physical presence within the jurisdiction, as well as conduct core income-generating activities there.
- Beneficial Ownership Information: In an effort to increase transparency, jurisdictions have implemented stricter requirements for maintaining and disclosing beneficial ownership information. Companies are now required to keep detailed records of their beneficial owners and, in some cases, report this information to local authorities.
- Removal of Tax Exemptions: Some Caribbean jurisdictions have removed or reduced tax exemptions previously available to IBCs. This move seeks to address concerns about tax evasion and level the playing field between local and international businesses.
- Anti-Money Laundering (AML) and Counter-Terrorism Financing (CTF) regulations: Caribbean jurisdictions have strengthened their AML and CTF regulations, requiring IBCs to implement more robust due diligence and Know Your Customer (KYC) procedures.
- Exchange of Information: Caribbean jurisdictions have increasingly become parties to international agreements that facilitate the exchange of tax and financial information, such as the OECD’s Common Reporting Standard (CRS) and the US Foreign Account Tax Compliance Act (FATCA).
- Re-domiciliation: Some jurisdictions have introduced or amended their rules to allow IBCs to re-domicile to or from other jurisdictions, making it easier for companies to move their legal base when necessary.
These changes have had a significant impact on the IBC landscape in the Caribbean, with companies now required to adapt their structures and practices to comply with the new regulations. For the most up-to-date information on recent changes in IBC rules in the Caribbean, it is recommended to consult official government sources or professional legal and tax advisors.
About the Author
Dr. Dawkins Brown is the Executive Chairman of Dawgen Global , an integrated multidisciplinary professional service firm .
Dr. Brown earned his Doctor of Philosophy (Ph.D.) in the field of Accounting, Finance and Management
He has over Twenty Six (26) years experience in the field of Audit, Accounting, Taxation, Finance and management . Starting his public accounting career in the audit department of a “big four” firm (Ernst & Young), and gaining experience in local and international audits, Dr. Brown rose quickly through the senior ranks and held the position of Senior consultant prior to establishing Dawgen.
He is a member of Chartered Management Institute (CMI), member of the Institute of Internal Auditors (IIA) , member of the Association of Certified Fraud Examiners (ACFE), member of Information Systems Audit and Control Association ( ISACA ) member of American Planning Association (APA) , member of the American Finance Association (AFA) and member of Association of Certified E-Discovery Specialists (ACEDS).
As Executive Chairman of Dawgen Global , he is responsible for the strategic guidance and strategy execution of several entities within the Dawgen Global Group.
