Tax-Deductible Meetings in the Caribbean

Through the Tax Information Exchange Agreement with the United States, convention expenses that are incurred by U.S. taxpayers for meetings in geographical areas considered part of the North American area and that otherwise are deductible as ordinary and necessary business expenses are allowed as deductions without regard to the additional limitations applicable to deductions for expenses associated with foreign conventions.  In short, U.S. companies can take the same tax deductions as they would for a U.S.-based meeting.

The following Caribbean nations are considered part of the North America area for the purpose of claiming tax deductions for expenses incurred in connection with a convention or other business gathering.  As U.S. territories, Puerto Rico and the U.S. Virgin Islands also qualify as tax-deductible North American meeting destinations.

Date that agreement took effect:

Aruba                                       September 13, 2004  

Antigua and Barbuda              February 9, 2003

Bahamas                                January 1, 2006

Barbados                                November 2, 1984

Bermuda                                 December 1, 1988

Costa Rica                                 February 11, 1991

Dominica                                 May 7, 1988

Dominican Republic               October 11, 1989

Grenada                                  July 12, 1987

Jamaica                                  December 17, 1986

Saint Lucia                              April 21, 1991

Trinidad and Tobago               February 8, 1990

The list of geographical areas that are currently included in the North American area for purposes of convention expense deduction rules is provided in the U.S. Department of the Treasury’s Revenue Ruling 2003-109.