FATCA: Trinidad & Tobago to implement exchange of Financial Information with the U.S

Financial institutions in Trinidad & Tobago will soon have to report specified financial account information on American citizens who have accounts in the twin-nation to U.S. authorities.

An agreement that will pave the way for the implementation of the Foreign Account Tax Compliance Act (FATCA) between Trinidad & Tobago and the United States has been signed.

The agreement is designed to improve international tax compliance through mutual assistance in tax matters based on an effective infrastructure for the automatic exchange of information.
In a statement , the Trinidad & Tobago’s Ministry of Finance described the signing of the Inter Governmental Agreement as “another milestone in the relationship between both countries on tax matters.”

The signing brings to an end about 3 years of negotiations between the countries on the Agreement.
This would allow for the automatic exchange of information between both countries and also ensure that foreign financial institutions, including local banks and insurance companies, will not be subject to a 30 percent withholding tax in the United States.

To bring the agreement into force, Trinidad & Tobago’s Minister of Finance will take to the parliament, the necessary legislation, among other things, to provide for the automatic exchange of information by the Board of Inland Revenue to the United States Inland Revenue Service.

FATCA is part of US federal Law that requires American citizens and residents—both within and outside the US—to report on their non-United States financial accounts. – (CMC)