Barbados and US Agree to Share Financial Information

Enhancing Cooperation on Tax Matters

Barbados and the United States have agreed to exchange financial information related to reportable accounts held by financial institutions in both countries, marking a significant step towards improving tax cooperation between the two nations.

Key Provisions of the Agreement

• Reporting financial institutions will provide detailed information on:
  • Gross amounts of interest, dividends, and other income generated by assets held in reportable accounts
  • Sale or redemption of property
  • Redemptions made to account holders
• Information will include:
  • Name, address, and tax identification number (TIN) of account holders who are residents of Barbados for reportable accounts held in Barbados
  • Gross amount of interest paid, as well as details on US-source dividends and other income for reportable accounts held in the US
• Currency information will be included to identify the currency in which each relevant amount is denominated

Implementation Timeline

• Reporting financial institutions must obtain and exchange this information by September 30th of each year, with respect to calendar years ending after December 31st, 2014

Establishment of an Arrangement

The Competent Authorities of Barbados and the United States have agreed to establish an arrangement under Article 25 of the Convention to ensure the effective implementation of the agreement.

Significance of the Agreement

This agreement is seen as a significant step towards improving tax cooperation between Barbados and the US, and is expected to help prevent tax evasion and avoidance. By sharing financial information, both countries can better identify and address potential issues related to tax compliance.