Although the Tax Information Exchange Agreement (TIEA) – signed with Japan yesterday – is the twenty-third for The Bahamas, for this jurisdiction, it is the first of its kind as it includes double taxation relief.
The signing ceremony took place at the Ministry of Foreign Affairs with Deputy Prime Minister and Minister of Foreign Affairs Brent Symonette signing for The Bahamas and His Excellency Hiroshi Yamaguchi, Japan’s ambassador to Jamaica and non-resident ambassador to The Bahamas, signing for Japan.
“[This TIEA] is a first, but by no means the last, of its kind for The Bahamas. It demonstrates the range and diversity of tax cooperation that countries have the opportunity to engage in, bilaterally, for their mutual economic benefits,” said Symonette.
Previous TIEAs allowed for cooperation on tax matters at internationally-accepted standards, but this TIEA goes further. It spells out certain exclusive taxing rights between the two nations on income for designated groups of students, pensioners and government employees.
“This is indeed epoch-making, because this is the first agreement which requires ratification procedures at Japan’s National Diet,” said Yamaguchi. The National Diet of Japan refers to its two legislative bodies, the lower and upper houses.
