Having previously agreed the terms of its intergovernmental agreement (IGA) in substance on 27 May 2014, Barbados became the 47th jurisdiction to officially sign an IGA with the USA for the implementation of FATCA on 17 November 2014. The Barbados IGA, which was published on the US Treasury site this week, is based on Model 1A (Reciprocal—Preexisting Tax Information Exchange Agreements (TIEA) or Double Tax Convention (DTC)). Under Model 1A, financial institutions in Barbados will be able to report the information required under FATCA to the tax authorities in Barbados, which will then be obliged to forward that information to the US Internal Revenue Service. Under the reciprocity provisions of Article 6, the financial institutions in the US will have equivalent obligations although it remains to be seen how and when the US will legislate for these obligations.
Having previously agreed the terms of its intergovernmental agreement (IGA) in substance on 27 May 2014, Barbados became the 47th jurisdiction to officially sign an IGA with the USA for the implementation of FATCA on 17 November 2014. The Barbados IGA, which was published on the US Treasury site this week, is based on Model 1A (Reciprocal—Preexisting Tax Information Exchange Agreements (TIEA) or Double Tax Convention (DTC)). Under Model 1A, financial institutions in Barbados will be able to report the information required under FATCA to the tax authorities in Barbados, which will then be obliged to forward that information to the US Internal Revenue Service. Under the reciprocity provisions of Article 6, the financial institutions in the US will have equivalent obligations although it remains to be seen how and when the US will legislate for these obligations.
