TAJ finalising preparations to meet US tax reporting law deadline

Tax Administration Jamaica (TAJ) says it is finalising preparations with financial institutions to have Jamaica ready for the August 17 deadline when a US tax reporting law takes effect.

Jamaica and the US signed an agreement in 2014 under America’s Foreign Accounts Tax Compliance Act (FATCA), which mandates the sharing of tax information.

Last week, the Jamaican Senate approved amendments to the law that will bring Jamaica into compliance with the agreement.

In a statement last evening, TAJ said so far 49 of 61 financial institutions have registered with its Tax Portal, with some participating in a test phase that will run until Friday.

Financial institutions are being reminded that based on the legislation, they will be required to submit their reports for calendar year 2014 to TAJ by August 31.

This will enable the TAJ to transmit the data to the US’ Internal Revenue Service by September 30.

Under the new measures, Jamaica must submit financial information through the TAJ, on persons who reside permanently in the US or persons who earn a substantial amount of their income from or within the US.