St Kitts And Nevis Signs FATCA Deal
by Mike Godfrey, Lowtax.net, Washington
04 September, 2015
St Kitts and Nevis has signed an agreement with the United States to facilitate compliance with the US Foreign Account Tax Compliance Act.
FATCA, enacted by the US Congress in 2010, is intended to ensure that the US obtains information on accounts held abroad at foreign financial institutions (FFIs) by US persons.
Failure by an FFI to disclose information on their US clients, including bank and investment account ownership information, balances, and transfers, will result in a 30 percent withholding tax on US-source payments.
The US Ambassador to the Organization of Eastern Caribbean States, Larry Palmer, said: "Every year, tax evasion deprives governments of all sizes of much-needed resources to fund public services and investments. The United States welcomes St Kitts and Nevis' commitment to enhancing global financial transparency by improving international tax compliance. Today's signing marks a significant development in our nations' collaborative efforts to combat offshore tax evasion – an objective that mutually benefits our two countries. FATCA is yet one more example of the deep and substantial ways in which the economies of St. Kitts and Nevis and the United States are linked."
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