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BVI in FATCA talks


22/08/2013

British Virgin Islands Premier Orlando Smith said on August 20, 2013 that the Caribbean territory has started talks with the US Treasury regarding the Foreign Account Tax Compliance Act (FATCA).

FATCA is intended to ensure that the Inland Revenue Service obtains information on accounts held abroad at foreign financial institutions (FFIs) by US taxpayers. Failure by an FFI to disclose information on their US clients, including account ownership, balances and amounts moving in and out of the accounts, will result in a requirement to withhold 30 percent tax on US-source income.

Smith told reporters that the British Virgin Islands is discussing an "intergovernmental agreement" with the US to comply with FATCA.

"We are of the very considered opinion that this course is the best one to adopt for the BVI," Smith said. He also pointed out that the territory's financial services industry agrees with this course of action.

On August 15, the Cayman Islands announced that it has concluded negotiations with the United States on agreements which pave the way for automatic exchange of information under FATCA.

Officials from the Bahamas and Bermuda have also expressed their intention to comply with FATCA.

www.taxnews.com

Kapcsolódó helyszínek:
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