The British Virgin Islands has officially signed an intergovernmental agreement with the United States for the implementation of the Foreign Account Tax Compliance Act (FATCA).
The agreement was signed by British Virgin Islands premier Orlando Smith at the US Treasury Department in Washington, according to Caribbean Journal.
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The FATCA law, which was enforced by Congress in 2010, requires information reporting and withholding tax provisions that target non-compliance by US taxpayers using foreign accounts.
The government of the British Virgin Islands first announced that it would be entering negotiations with the US government on such an agreement in April 2013.
The recent pact marks as final step in this part of FATCA implementation.
Smith said: "This signing enables financial institutions structured in the Virgin Islands to prepare for the implementation of FATCA on the basis that there will be an effective IGA in place by 1 January 2015."
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