Is BVI a Model 1 IGA?

US Treasury Department has updated its FATCA website, reporting that British Virgin Islands has signed a Model 1 intergovernmental agreement (IGA) with the United States as of June 30.

Does the US have a tax treaty with British Virgin Islands?

Green card holders can only qualify under the bona fide resident test if they hold a passport of a country that has a tax treaty with the U.S. The BVI does not currently have a tax treaty with the U.S.

Is BVI participating in CRS?

As an early adopter the BVI has agreed to exchange financial account information with the first group of participating jurisdictions under the CRS by September, 2017. Click here to access the self-certification forms for individuals and entities.

What is an IGA FATCA?

IGA is simply shorthand for intergovernmental agreement. To implement FATCA, the United States government has developed two forms of IGAs: Model 1 agreements and model 2 agreements. Model 2 IGAs addressed concerns in some nations that the FATCA regime could violate local or national laws.

Who is exempt from FATCA reporting?

You are not a married person filing a joint income tax return and the total value of your specified foreign financial assets is more than $200,000 on the last day of the tax year or more than $300,000 at any time during the year.

Are the British Virgin Islands a tax haven?

Benefits of BVI as a Tax Haven A BVI offshore company pays zero income tax. There is no British Virgin Islands tax on capital gains tax, nor are there gift taxes, inheritance taxes, sales taxes, or value added taxes.

Is Dominican Republic part of CRS?

While most Caribbean islands and tax havens have joined the CRS, the Dominican Republic remains one of the non-CRS countries.

Who is subject to FATCA?

FATCA requires certain U.S. taxpayers who hold foreign financial assets with an aggregate value of more than the reporting threshold (at least $50,000) to report information about those assets on Form 8938, which must be attached to the taxpayer’s annual income tax return.

How does the BVI Iga report to the IRS?

The BVI IGA allows BVI based entities to report their US account holders’ information to the BVI Government via the BVI International Tax Authority (“ BVI ITA ”) which will then report annually to the IRS.

When did the British Virgin Islands sign FATCA?

On June 30, 2014 the British Virgin Islands (“ BVI ”) signed a Model 1B Intergovernmental Agreement with the US in relation to FATCA (the “ BVI IGA ”).

How to comply with FATCA in the BVI?

BVI investment funds affected by FATCA should register and obtain a Global Intermediary Identification Number (“ GIIN ”) via the IRS FATCA website, review their offering and operational documents and implement a FATCA compliance program.

Who is the International Tax Authority for the Virgin Islands?

The International Tax Authority was established by the International Tax Authority Act, 2018 to take a proactive stance in relation to all cross–border tax matters that currently affect or have the potential to affect the Virgin Islands. The Foreign Account Tax Compliance Act comes under the portfolio of the International Tax Authority.