Taxation Advisory Services under the Economic Partnership Agreement

For those engaged in providing Taxation Advisory Services, the Barbados Private Sector Trade Team has provided a series of questions and answers designed to address many of the issues you may have regarding access to the EC for your business.

May 08 2012 | Research

Our Barbadian Tax Services Company would like to enter into a contract with a European client from our offices here in Barbados (without travel to Europe)? Is that allowed under the Agreement?

The Economic Partnership Agreement between the European Union and the countries of CARIFORUM (commonly referred to as the EPA) does allow you, the Barbadian Tax Services provider to provide services to a client in Europe. 

There are some conditions in the following European countries:

Austria: There is a nationality requirement for representation before competent authorities.

Cyprus: Tax agents must be duly authorised by the Minister of Finance.  Authorisation is subject to an economic needs test.  The main criteria: the employment situation in this sub-sector.   

Bulgaria, Malta, Romania & Slovenia: There is no commitment to permit the provision of services through this form of supply.

There are no limitations on Barbadian Tax Advisory Service providers wanting to enter into contracts with European clients who are located here in Barbados.

Taxation Advisory Services

I am an Independent Tax Services Professional. I’ve been offered a contract to provide services to a client in Europe. Does the EPA have provisions for me to travel to the EU to fulfill the contract should I accept it.

As an Independent Tax Services Professional you are allowed under the EPA to travel to Europe to service a contract under the following conditions:

In order to apply for temporary entry, you must be a self-employed Tax Services Provider established here in Barbados (or another CARIFORUM territory) and your contract in Europe may not be for a period longer than 12 months.  You are required to have at least six (6) years of experience in the field and must possess a university degree or equivalent qualification, and professional qualifications where required by law.

Your temporary entry will be for no more than six (6) months cumulatively during any 12-month period, or for the length of the contract, whichever is less, (This period is 25 weeks in Luxembourg.) and only the work under the contract is permitted during your stay in Europe.  You will not be permitted to perform any other work.

The following countries impose conditions on Independent Tax Services Professionals from Barbados wishing to work in their countries:

In Austria, the employer must be a member of the relevant professional body in the home country where such a body exists.  There is a nationality condition for representation before competent authorities. 

In Belgium, an economic needs test will be applied.   

In Bulgaria, Czech Republic, Denmark, Greece, Finland, Hungary, Lithuania, Latvia, Malta, Romania & Slovakia, economic needs tests will be applied.  

Portugal has not made a commitment to allow this category of service providers to supply tax advisory services and Hungary imposes a residency requirement for tax advisory services.

Taxation Advisory Services

What about the case of my Barbadian Tax Advisory Firm? We just want to be able to send staff to work on a contract as needed. Is that possible under the CARIFORUM/EU Economic Partnership Agreement (EPA)?

There is good news for your company.  You are allowed to travel to the EU to provide your contract services under the following general conditions:

• The person applying for temporary entry must be supplying a service as an employee of a business, which has obtained a service contract for a period not exceeding 12 months
•  
• The person must have been an employee of the business for 1 year prior to application for entry, and must have at least 3 years professional experience in the tax advisory sector
•  
• The person applying for temporary entry must have a university degree or equivalent qualification, and professional qualifications where required by law
•  
• The temporary entry will be for a cumulative period not exceeding 6 months (or 25 weeks in Luxembourg) during a 12-month period or for the duration of the contract (whichever is less)
•  
• The visa permits only the contracted service activity, no other business activities
•  
• The number of persons covered by the services contract shall not be larger than necessary to fulfil the contract

There are also some conditions imposed by specific countries:

• Austria: The employer must be a member of the relevant professional body in the home country where such a body exists.  There is a nationality condition for representation before competent authorities. 
• Belgium: An economic needs test will be applied, except for in the case of Commercial Service Suppliers (CSS) where the annual wages is above the amount defined by the relevant laws and regulations. 
• Bulgaria, Czech Republic, Denmark, Greece, Finland, Hungary, Lithuania, Latvia, Malta, Romania & Slovakia: Economic needs tests will be applied. 
• Portugal: There is no commitment to allow this category of service providers to supply tax advisory services.
• Hungary: There is a residency requirement for tax advisory services.

Taxation Advisory Services

Once a Barbadian Taxation Advisory Services company has been given permission to operate in the EU under the Agreement, what are the options for sending staff from this country to work in Europe?

Generally, the senior Barbadian staff responsible for establishing a commercial presence in Europe may stay for 90 days in any 12-month period. Key personnel will be allowed to work in Europe for a period of up to 3 years, and graduate trainees may stay for one year. Staff in these categories will be, of course, subject to normal visa and immigration requirements.

There are exceptions to those general rules where specific countries have imposed their own conditions on Barbadian staff working in Europe under the EPA.  Those are:

• In Austria, there is a nationality condition for representation before competent authorities.
• In Bulgaria & Slovenia there are nationality conditions for specialists and in
• Hungary there is a residency requirement for tax advisory services suppliers.

Taxation Advisory Services

What about licensing and qualifications for Barbadian companies wishing to operate in the EU, or European companies who want to open operations in Barbados under the EPA? Does the agreement speak to those issues?

Yes, the EPA does address the issue of mutual recognition of licensing and qualifications.

The agreement calls for the negotiation of terms for mutual recognition through the relevant professional bodies in the private sector.  Those negotiations must take place with recommendations made to the CARIFORUM-EU Trade and Development Committee.  Following review, the Committee will then finalise the mutual recognition agreements.

Taxation Advisory Services