The government of St Kitts and Nevis, on a ceremony that took place in Barbados signed the agreement with the government of the United States on Monday 31 August 31, implementing the US Foreign Account Tax Compliance Act (FATCA).
The agreement was based on the USA's Model 1B Agreement indicating tha financial institutions in the Federation will be required to report on the income from financial assets that are held outside of the USA to the Government of St. Kitts and Nevis.
The US FATCA Agreement was enacted by the US Congress in 2010, targeting non-compliance by US taxpayers who use foreign accounts. According to FATCA, foreign international institutions have to report to The US Internal Revenue Service (IRS) about financial accounts or foreign entities held by US taxpayers or in which they hold a substantial ownership interest.
FATCA seeks to improve international tax compliance through the introduction of a reporting regime for foreign financial institutions to identify and report, to the US Internal Revenue Service (IRS), information on assets of US$50,000 or more, held by US taxpayers.
More information:
The world's major offshore jurisdiction. Discover more about
BVI company formation.
Looking for a bank for your offshore company? Think about a
Loyal Bank Offshore Bank account opening.