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FATCA On Its Way to Honduras

Article Summary:

Americans residing in Honduras must compulsorily and transparently declare their income to the U.S. Treasury Department starting in 2013, as the Foreign Account Tax Compliance Act (FATCA) is coming to Honduras.

Photo Credit: Grant-Thorton UK

Original Article Text From La Tribuna via Google Translate :

U.S. to Hunt for Tax Residents in Honduras

Americans residing in Honduras must compulsorily declare their income and transparently to the Treasury Department, from 2013 upon entry into force legislation that seeks to recover more than $ 7.6 billion in taxes in ten years worldwide.

The regulation also aims to address money laundering in countries like Honduras.

This what Caesar said Novo, Deloitte executive who was in the country last week offering a series of lectures on the subject to various sectors, including government.

This policy also covers the Hondurans who acquired U.S. citizenship, but for different reasons returned to Honduras.

In English it is known as the Foreign Account Tax Compliance Act (FATCA), and Castilian Foreign Fiscal Accounts Act. It arose from the financial crisis that exploded in the U.S. in 2008, said Novo.

It was created by the Obama administration to recover about 8 billion owed to them, due to the application of a series of tax incentives to retain jobs.
Although take effect until next year, since 2011 the Treasury Department began soliciting information from their financial institutions Honduran citizens.

However, the USA is trying to Honduras nominate a state entity to be responsible for channeling such information.

To do this, Honduras must sign a bilateral agreement that will be based on a decree issued by the National Congress in 1991, the government of former President Rafael Leonardo Callejas.

Novo Caesar noted that in other countries in the region talks to implement the law are advanced.

This decree authorizes sharing financial information to domestic banks with U.S. Treasury.

Spain and Italy took advantage of this law by signing agreements to which the United States should also provide information to correctly declare foreign income residents to their countries of origin.

Will likely hold “commissions, fees, rents, royalties, salaries, wages, annuities, license fees, revenue bonds.”

Also, “earnings and profits, if such payments are from U.S. gross proceeds of any sale or disposition of property of the United States or products that can produce interest or dividends.”

Also “the interest paid by foreign branches of U.S. banks. Exceptions to this law, remittances and foreign exchange payments, “explained the executive. A countries or financial institutions that do not cooperate they will retain 30 percent of U.S. source payments.

Novo is responsible for disseminating this legislation in Honduras, Nicaragua, Costa Rica and Dominican Republic. (JB)

Link to Original Article:

From La Tribuna

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