Cabinet has given the approval for a Central Authority to be used by financial institutions to transmit tax information on US persons in Jamaica, who are liable to pay taxes to the Internal Revenue Service (IRS) in the United States.
With the passage of the Foreign Account Tax Compliance Act (FATCA)in 2010, local financial institutions are required to provide detailed information on US citizens or green card holders to the IRS.
In a statement this afternoon, the Bank of Jamaica informed that the Government has decided to adopt a Model 1 Inter-governmental Agreement on FATCA.
A model one reporting system has been favoured by local bankers.
The BOJ says the government has committed to any necessary legislative changes that will ensure that disclosures by the financial institutions do not breach Jamaican law.
The BOJ says preparations are underway to conclude the Model 1 agreement by the middle of this year.
BOJ is encouraging financial institutions to continue preparation activities to facilitate the implementation of the reporting regime.
Approximately 75 jurisdictions and countries have already signalled their intent to enter into an Inter-governmental Agreement on FATCA with the US.
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