Banking Information between the Dominican Republic and the U.S.

Since July 17, the agreement between the Dominican Republic and the United States for the exchange of information on reportable bank accounts entered into force.

Tuesday, July 23, 2019

Dominican financial institutions must identify the accounts of individuals, legal entities or other specialized entities such as U.S. trusts, to submit relevant information to the U.S. Internal Revenue Service (IRS), breaking down their movements, accounts, receipts and other operations, informed the government of the Dominican Republic.

From the DGII statement:

July 22, 2019. Impuestos Internos announced the formal entry into force of the Intergovernmental Agreement, United States-Dominican Republic, to Improve International Tax Compliance (IGA) and be able to apply the Law on Tax Compliance of Accounts Abroad (FATCA), ratified by the National Congress.

The entry into force of the agreement is based on the diplomatic note issued last Wednesday 17 of the current month and notified by the Ministry of Foreign Affairs of the Dominican Republic to the Government of the United States.

The agreement regulates the exchange of information, through an automated system, of Reportable Accounts between the United States and the Dominican Republic.

In this sense, Dominican financial entities must identify the accounts of individuals, legal entities or other specialized entities such as U.S. trusts, to submit relevant information to the U.S. Internal Revenue Service (IRS), breaking down their movements, accounts, receipts and other operations.

Read full statement (In Spanish).



More on this topic

Tax Data: Agreement Between Costa Rica and the U.S.A.

August 2020

In order to update the Intergovernmental Agreement for the Effectiveness of the Tax Compliance Law on Foreign Accounts, signed by both parties in 2013, the governments of both countries signed a complementary agreement to FATCA.

According to the Ministry of Finance of Costa Rica, with the subscription of the complementary agreement, the legal basis of the FATCA (Foreign Account Tax Compliance Act) will be updated with the provisions of the Agreement with the Government of the United States of America for the exchange of information on tax matters, which will enter into force next September.

Deadlines Extended for Compliance with FATCA Law

May 2014

An announcement has been made that transition to compliance by financial institutions with the conditions established by law will be carried over to the years 2014 and 2015.

The Treasury Department of the United States, through the inland revenue service (IRS) has announced that it will take into account the "good faith" of financial institutions outside the United States who will have to make adaptations in order to comply with the law and will not issue penalties for delays between 2014 and 2015.

Panama Gets Ready for FATCA Compliance

August 2013

The Intergovernmental Agreement Model 1 is being prepared with the U.S. Treasury for the application of the Act on tax compliance for accounts held abroad.

"The Ministry of Economy and Finance (MEF) is working in conjunction with an external consultant for the purpose of preparing the negotiation strategy," noted an article in Panamaamerica.com.pa.

The Truth About Foreign Account Compliance Act

January 2013

Government to government agreements simplify compliance with the rule that seeks transparency in the finances of U.S. citizens abroad.

Elfinancierocr.com reports that "the Foreign Account Compliance Act (FATCA) is a reality and the truth is that to date, there are very few financial institutions in our region who are prepared to meet the requirements of this U.S.

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