The Caribbean is continuing to raise its profile as a meetings and incentives destination as an additional four Caribbean nations have signed the Tax Information Exchange Agreement (TIEA) with the United States, bringing to 14 the number of Caribbean Tourism Organization (CTO) member states to sign the accord.
The agreement makes these CTO member countries more attractive to United States-based companies that organise business meetings and conventions because the companies’ expenses will be tax-deductible in the U.S.
This tax deduction is a result of the Caribbean Basin Initiative (CBI) Convention Tourism Tax Credit that allows U.S. companies to hold business meetings in eligible Caribbean countries or territories and to take applicable expenditures as a tax write off. CBI beneficiary countries that have signed the Tax Information Exchange Agreement (TIEA) with the United States are eligible to host conventions under the provisions of the Convention Tourism Tax Credit.
“The CBI Convention Tourism Tax is a unique programme that truly works to the advantage of both the Caribbean conventions host countries and the clients who receive the tax breaks,” said Hugh Riley, CTO’s Director of Marketing for the Americas.
The four nations signing the agreement within the past year include: Antigua & Barbuda, The Bahamas, The Cayman Islands, and The British Virgin Islands.
The complete list of Caribbean Tourism Organization (CTO) member nations that have signed the TIEA at this time include:
Antigua & Barbuda / Bahamas / Barbados / Bermuda / British Virgin Islands / Cayman Islands / Dominica
/ Dominican Republic / Grenada /
St. Lucia /
Trinidad & Tobago /
According to the U.S. State Department, to qualify for the convention benefit a country must be a designated CBI beneficiary and must have either signed a TIEA with the United States or been certified by the U.S. Treasury Department as having an effective exchange programme under a bilateral income tax treaty.
The CBI, which was enacted in 1984 and later enhanced in 1990, is a system of trade preferences and related programs designated to promote economic development throughout private sector initiatives in the Caribbean.