Trinidad And Tobago Signs US FATCA Agreement
by Mike Godfrey, Lowtax.net, Washington
22 August, 2016
Trinidad and Tobago and the United States have signed an agreement to facilitate automatic exchange of information under the US Foreign Account Tax Compliance Act (FATCA).
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 will result in a requirement to withhold 30 percent tax on payments of US-sourced income.
The signing of the agreement brings to an end approximately three years of negotiations between the US and Trinidad and Tobago. It was completed before the September 30 deadline set for the exchange of information between both countries.
To bring the agreement into force, Trinidad and Tobago's Parliament must now pass the necessary legislation to enable the Board of Inland Revenue to pass data on to the US Internal Revenue Service.
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