Published On: Tue, Dec 16th, 2014

Curaçao and the United States sign agreement to share tax information

DSC_0086 (2)WILLEMSTAD - Curaçao’s Minister of Finance Jose Jardim and U.S. Consul General James Moore signed today an intergovernmental agreement to implement the Foreign Account Tax Compliance Act (FATCA) to promote transparency between the two nations on tax matters. The agreement underscores growing international cooperation to end tax evasion everywhere, and it builds on the existing tax information exchange agreement (TIEA).

Curaçao and the United States have a longstanding and close relationship that extends to many areas. The FATCA agreement will enhance bilateral cooperation on mutual assistance in tax matters and signals a desire to further increase international tax compliance.

The Minister of Finance Jose Jardim, who signed on behalf of Curaçao, stated, “By signing this FATCA agreement, Curaçao once more underscores it is committed to being not only a transparent jurisdiction, but also a jurisdiction that is at the vanguard of adhering to the highest international standards concerning automatic exchange of tax information. In addition, it is worth mentioning that by signing FATCA we avert an automatic withholding tax of 30 percent between the United States and Curaçao, thus avoiding serious economic damage as a result of signing FATCA. To conclude, I want to thank our United States’ partners, especially the Consul-General, in having worked in close cooperation with the Ministry of Finance on this topic.”

U.S. Consul General James Moore, who signed on behalf of the United States, stated, “The signing of this agreement is an important step forward in the collaboration between the United States and Curaçao to combat tax evasion. When taxpayers overseas avoid paying what they owe, other taxpayers have to bear a disproportionate share of the tax burden. The tax information exchange agreement (TIEA) and the FATCA intergovernmental agreement are important parts of the U.S. government’s effort to address that issue.”

The United States introduced FATCA in 2010 to combat offshore tax evasion by encouraging transparency and obtaining information on accounts held by U.S. taxpayers in other countries. FATCA calls for foreign financial institutions to provide annually, either directly or indirectly through their governments, the U.S. Internal Revenue Service (IRS) with account information about U.S. account holders. The FATCA agreement between Curaçao and the United States provides that financial institutions in Curaçao will report information about U.S. account holders to the Ministry of Finance, which will in turn relay that information to the IRS. Likewise, the IRS will provide information about Curaçao account holders in the United States.

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