30 June 2014
The BVI Government released a statement confirming that it has signed a Model 1B (non-reciprocal) Intergovernmental Agreement (IGA) in relation to the US Foreign Account Tax Compliance Act (FATCA).
The text of the IGA has not yet been released. Premier Smith said, “The formal signing of the IGA is the final step in this phase of FATCA implementation. This signing allows financial institutions organised in the Virgin Islands to prepare for the implementation of FATCA on the basis that there will be an effective IGA in place by January 1, 2015.”
According to the Financial Secretary, a key benefit of the IGA is that the Territory’s financial institutions have until the end of 2014 to obtain a Global Intermediary Identification Number (GIIN).
Guidance notes to assist financial institutions and other parties in the Territory in determining their requirements under the IGA have been drafted and are expected to be released shortly for industry comment. Workshops will be held in the Territory to discuss the guidance notes, which will be updated and amended as required before being issued in final. Enabling legislation will also have to be passed.