Costa Rica Agrees to FATCA: No Financial Anonymity for US Citizens
On Tuesday, Costa Rica’s foreign ministry signed an agreement to comply with the US Foreign Account Tax Compliance Act (FATCA). Beginning March 31, 2015, financial institutions must report the holdings of US citizens living in Costa Rica or face a 30 percent tax on incoming payments from the United States.
“This shows Costa Rica’s willingness to be transparent [and] collaborate in the fight against tax evasion, money laundering, and legal loopholes,” said Edgar Ayales, Costa Rica’s finance minister.
FATCA compliance requires all international financial institutions worldwide to report directly to the US Internal Revenue Service all assets and incomes of any US citizens with US$50,000 or more on their books.
Source: Tico Times.