Guyana, US reach pact on tax compliance Act

Guyana and the United States have concluded “in substance” an intergovernmental agreement (IGA) for implementation of the US Foreign Account Tax Compliance Act (FATCA).

FATCA was enacted by the US in March 2010 as a mechanism designed to reduce the level of tax evasion which currently exists. It seeks to ensure that United States persons disclose their overseas investments and pay applicable taxes on US sourced income invested overseas.

The Government Information Agency (GINA) reported that Minister of Finance Dr Ashni Singh made the announcement yesterday and Guyana is now listed by the US Department of the Treasury as one of the jurisdictions treated as having an intergovernmental agreement in effect.

The US Department of the Treasury and the IRS announced in April that jurisdictions that have reached agreements in substance with the US on the terms of intergovernmental agreements under the FATCA can be treated as having agreements in effect until the end of 2014.