On January 25, 2002, the United States Secretary of the Treasury, Paul O’Neil, signed an agreement with the Commonwealth of The Bahamas that allowed for the exchange of tax matter information between the United States and The Bahamas. As part and parcel of this agreement, The Bahamas became eligible on January 1, 2006, to be treated as if meetings, conventions and trade shows are conducted within North America. Following are excerpts from that Agreement:
AGREEMENT BETWEEN THE GOVERNMENT
OF THE UNITED STATES OF AMERICA
AND THE GOVERNMENT OF THE
COMMONWEALTH OF THE BAHAMAS
FOR THE PROVISION OF INFORMATION WITH RESPECT
TO TAXES AND FOR OTHER MATTERS
WHEREAS the Contracting Parties wish to enter into a form of agreement that allows United States taxpayers to deduct expenses allocable to a convention, seminar or similar meeting held in The Bahamas in the same manner and to the same degree that such a deduction would be permitted if such meeting were held in the United States,
ARTICLE 5 – CONVENTION TAX TREATMENT
A United States taxpayer may deduct from income costs incurred with respect to attendance at a conference or convention held in The Bahamas in the same manner and to the same extent that such taxpayer is permitted to deduct such costs with respect to attendance at a conference or convention held in the United States.
Read the full Agreement.
