1989 - 2019 30 years in business Saturday, 15th June 2019

Mexico Supports Costa Rica on Tax Info Exchange

Dear Clients, 


Officials from Mexico’s Tax administration Service (SAT) met with Costa Rican tax

Administration officials from April 20 to 22, 2015, to share their experiences in the area

Of tax information exchange.


The Costa Rican authorities learned from Mexico’s experience in implementing

the US Foreign Account Tax Compliance Act (FATCA) and the OECD’s common

reporting Standard (CRS) accounting to a statement from the Inter-American

Centre of Tax Administration (CIAT), released after the meeting.


FATCA, enacted by the US Congress in 2010, is intended to ensure that the internal $

Revenue Service (IRS) obtains information on accounts held abroad at foreign financial

Institutions (FFI’s) by US persons, Failure by an FFI to disclose information on their US clients,

Including account ownership, balances and amounts moving in and out of the accounts, will

result in a requirement on US financial institutions to withhold 30 percent tax on US-source income.


On November 26, 2013, Costa Rica signed a Model 1A intergovernmental agreement (IGA)

With the US to implement FATCA, The Model 1A agreement also provides that the US will

Also provide tax information to the Costa Rican Government regarding Costa Rican individuals

With accounts in the US.


Should you require any further clarification, please do not hesitate to contact us at:



Kind Regards

Cardwell Advisory Desk


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