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
