The intergovernmental agreement (IGA) between Curacao and the United States that implements FATCA Model 1 is now in force, Curacao Chronicle informed.
The provisions commonly known as the Foreign Account Tax Compliance Act (FATCA) became law in March 2010 and were enacted by US Congress to target non-compliance by US taxpayers using foreign accounts or foreign entities. The US government entered into a number of bilateral intergovernmental agreements (IGA) that set the groundwork for cooperation between the jurisdictions in this area.
On December, 16 2014, Curacao and the US signed an intergovernmental agreement setting out the information reporting and withholding requirements applicable to financial institutions in Curacao. Under the Model 1 IGA between Curacao and the US, Curacao foreign financial institutions are required to report their information about their US clients to the Curacao Tax Department, which then shares the information with the IRS. Before the entry into force of the agreement, Curacao was deemed by the US as having a FATCA IGA in place in practice, pending the completion of its domestic ratification procedures.
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