By Josefina Josepha | Caribbean News Now
WILLEMSTAD, Curacao — The Model 1 intergovernmental agreement (IGA) signed between Curacao and the United States implementing the US Foreign Account Tax Compliance Act (FATCA) is now in force, according to sources in Washington.
The US Congress enacted FATCA in 2010, to ensure that the US is able to get information on foreign accounts held by US citizens or corporations at foreign financial institutions (FFIs) and failure to comply will result in a 30 percent withholding tax on payments of US-sourced income.
What does this mean for Curacao FFIs?
It is now mandatory that Curacao’s FFIs report their information to the Curacao Tax Department, which will automatically exchange the information with the US Internal Revenue Service (IRS) with, furthermore, provision for reciprocity for Curacao.
Bron: Caribbean News Now