Wednesday, July 09, 2014

BVI Premier Signed FATCA-related Agreement

The Model 1B intergovernmental agreement (IGA) was signed by the government of the BVI at the Department of Treasury in Washington, DC. According to BVI Premier Dr Orlando Smith who signed the IGA, this is the final step in the current phase of Foreign Account Tax Compliance Act (FATCA) implementation in the British Virgin Islands. Next phase will be creation and issuance of guidance notes that assist financial institutions and other parties in the jurisdiction to determine their requirements under the agreement.

BVI Financial Secretary Neil Smith stated among the key benefits of the IGA that BVI financial institutions have until the end of 2014 to obtain a global intermediary identification number (GIIN)

The BVI government will issue a draft of the territory’s guidance notes to receive comments from members of the financial services industry. It will be possible to give feedback on the guidance notes also through participating in workshops that will be provided for the industry specialists by KPMG (BVI) Limited. After making sure that the guidance notes will adequately address any BVI-specific situations, they will be updated and amended.

FATCA was enacted in 2010 by the US Government, with the main purpose to combat tax evasion by some US citizens holding their investments in accounts outside of the United States, and requires foreign financial institutions to report to the IRS information on assets of US$50,000 or more held by US taxpayers.

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