Barbados getting ready to show US the money

Government will negotiate with the US to ensure that institutions like credit unions, pension funds, government entities and international institutions that present a low risk of US tax evasion are exempt from the provisions of FATCA under a special annex to the IGA

Barbados is moving steadily towards an Inter-Governmental Agreement (IGA) with the United States to give effect to the Foreign Account Compliance Act (FATCA).

03 February 2014 Minister of Industry Donville Inniss, Bank Secretary of the Central Bank Elson Gaskin and Commissioner of Inland Revenue, Sabina Walcott- Denny at a press conference highlighted the logistics of the initiative.

According to Gaskin, the timeline that the negotiation team has set for actually getting the IGA into place is April 30, 2014, while the deadline for signing is June 30. It was noted that Barbados will have at least until September 30, 2015 to ensure that all matters needed to operationalise FATCA, including the passage of legislation are in place.

The Bank secretary explained, “The threshold for bank accounts is USD 100 000 on an aggregate basis. On the July 1, 2014 you will be subject to FATCA reporting. Or if you have an insurance contract with a Cash Surrender Value of at least USD 500 000 you will also be subject to report. If you are under those thresholds those amounts don’t have to be reported,” he said.