The Government of Barbados and the United States have signed an inter-governmental agreement (IGA), on 17 November 2014, to facilitate compliance with the US Foreign Account Tax Compliance Act (FATCA).
Under the agreement, Foreign Financial Institutions (FFIs) in Barbados will report the information required under FATCA about U.S. accounts to the Barbados Government, which in turn will report the information to the IRS. This agreement is reciprocal, meaning that the United States will also provide similar tax information to the Barbados Government regarding individuals and entities from Barbados with accounts in the United States.
FATCA, which was enacted by the US Congress in 2010 and took effect on July 1, 2014, is intended to ensure that the US Internal Revenue Service obtains information on the financial accounts of US persons held by foreign financial institutions (FFIs).
