US & Saint Lucia Sign FATCA IGA
On November 19, the Prime Minister of St. Lucia, Kenny Anthony, and the US Ambassador to Barbados, the Eastern Caribbean, and the Organization of Eastern Caribbean States, Larry Palmer, signed an inter-governmental agreement (IGA) to facilitate compliance with the Foreign Account Tax Compliance Act (FATCA).
FATCA, enacted by the US Congress in 2010, requires all financial institutions (FIs) outside of the United States to submit regular information on financial accounts held by US persons to the Internal Revenue Service (IRS). Otherwise, certain payments of US-sourced income will face a 30 percent withholding tax.
Under the terms of the IGA, under this agreement both countries will share information for tax purposes.
After the signing, Palmer said: "The United States welcomes St. Lucia's commitment to enhancing global financial transparency by improving international tax compliance. Today's signing marks a significant development in our nations' collaborative efforts to combat offshore tax evasion – an objective that mutually benefits our two countries."
Government will introduce shortly in Parliament a Bill giving legal force to the provisions of the Agreement and the first exchange of reportable information by the foreign financial institutions in respect of 2014 and 2015 will be submitted by Sep. 30, 2016.
Further information about the Inter-Governmental Agreement may be sourced from the Financial Services Regulatory Authority and the Inland Revenue Department, Waterfront, Castries, Saint Lucia.