Published On: Wed, Sep 4th, 2013

Curacao opts for the IGA Model 1 with the U.S.

JardimWILLEMSTAD – The Minister of Finance, Dr. Jose Jardim announced that Curacao will continue negotiating with the United States tax services to reach an agreement for the Foreign Account Tax Compliance Act (FATCA) Model 1. Thus complying with the fiscal legislation according to the American system and an Inter Governmental Agreement (IGA Model 1).

In 2012, the FATCA committee was installed by the Minister of Finance to give counsel on the possibilities for Curacao to reach a FATCA IGA agreement with the U.S.

After extensive deliberations with various actors in the financial service sector, the IGA Model 1 was identified as the preferred model for Curacao. IGA Model 1 is an agreement between the Governments to exchange tax information whereby Foreign Financial Institutions (FFI’s) report information on certain account holders to the fiscal authorities, who in turn shares this information to the U.S. automatically.

Curacao started these negotiations on FATCA with the U.S. on May 14, 2013. The confirmation that Curacao opts for an IGA Model 1 agreement highlights Curacao’s continuous commitment to comply with international standards of fiscal legislation.

This guarantees that business between Curacao and its commercial partners can continue in a efficient and effective manner.

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