FATCA – Bahamas Implementation Update

THE BAHAMAS AND THE UNITED STATES OF AMERICA FOREIGN ACCOUNT TAX COMPLIANCE AGREEMENT BILL, 2015 (the "Bill") was passed by the Bahamian Parliament on 7th August 2015 and now only awaits the Assent of the Governor-General before becoming an Act of Parliament. It is expected to enter into force imminently and will thereby implement the US FATCA regime in The Bahamas.

"FATCA" refers to the US' Foreign Account Tax Compliance Act. In November 2014 The Bahamas entered into with the United States a Model 1 Intergovernmental Agreement ("Bahamas-US FATCA Agreement") for implementing FATCA in The Bahamas.

Guidance notes for the intended legislation had been issued in May 2015 and a Bahamas Tax Information Exchange Portal is up and running. An instructional guide on registering for access and processing FATCA files has been published.