The Exchange of Information Unit would like to remind Financial Institutions’(FI’s) of their obligations as we approach the deadline for filing information on Reportable Accounts held by FI’s in the Islands. Detailed below are the deadlines, the penalties for failure to file reports on reportable accounts through the TCIG- AEOI and IDES portals and other relevant updates.



The deadline for the filing of reports by Financial Institutions on Reportable Accounts is 30th June 2019.

For avoidance of doubt the timeline for reporting is detailed below:



Reporting Year

In respect of

Information to be reported

Reporting date to International Tax Authority


Each Specified US Person either holding a Reportable Account


as a Controlling Person of an Entity Account

  1. Name
  2. Address
  3. US TIN (where applicable or DOB for Pre-existing Accounts)
  4. Account number or functional equivalent
  5. Name, and   identifying number of Reporting Financial Institution
  6. Account    balance,   or value

30 June 2015


as 2014 plus payments to NPFI (see 17.6)

As 2014 plus:

Custodial Accounts Total gross amounts of interest, dividends, and other income paid or credited to the account


Depository Accounts

Total amount of gross interest paid, or credited to the account in the calendar year or other reporting period


Cash Value Insurance contracts

  1. Surrender value; or
  2. Amount calculated by the Specified Insurance Company; and
  3. Any part surrenders.


All other accounts


The total gross amount paid or credited to the account including the aggregate amount of any redemption payments.

30 June 2016



As 2015

as 2015 plus:


Custodial Accounts

Total gross proceeds from the sale or redemption of property paid or credited to the account

30 June 2017

2017 onwards

As 2014

All of the above

30 June following the  end  of  the reporting year



Non- Compliance

If financial institutions do not comply with the US Regulations in regard to the reporting and filing of returns, a 30% withholding tax is imposed. The withholding tax is imposed on the US source income of that financial institution, and is done on both its own US investments and those held on behalf of its customers. Financial institutions are also required to close accounts where their US customers do not provide the requisite information to be collected by the financial institution. Note that where there are no accounts to report, Financial Institutions are required to file a NIL return.


As of 1st January, 2019, the Inland Revenue Service (IRS) and the Treasury have implemented a 30% U.S. withholding tax that will apply to any gross proceeds from the sale or other disposition after December 31, 2018 of any property of a type that can produce the U.S. source income described above. More information on this can be obtained from the IRS website: https://www.irs.gov/businesses/corporations/summary-of-fatca-timelines.

It should be noted that the Turks & Caicos Islands Government and the IRS have reached an agreement in regards to mutual assistance in joint audits.



The International Tax Compliance Regulations 2016 which came into force on 1 April 2016, gives the Competent Authority the power to require a Reporting Financial Institution—

  1. to provide to the Competent Authority, within a time specified by the Competent Authority, the information, including copies of any relevant books, documents or other records, or any electronically stored information, that the Competent Authority may reasonably require; or


  1. to make available to the Competent Authority for inspection, at the time specified by the Competent Authority, all copies of books, documents or other records, or any electronically stored information, in the Reporting Financial Institution’s possession or under its control.


Note that Financial Institutions are required under regulation 16 to retain for a period of five years all books, documents and other records, including those stored by electronic means, which relate to the information required to be reported to the Competent Authority.



Where a FI fails to make a report under regulation 10 or to implement arrangements or procedures in order to comply with FATCA, then they will have committed an offence under regulation 17 of the Regulations and will be liable on summary conviction to a fine of $10,000, or imprisonment for a term of two years, or both.


IRS Notice 2017-46

Please refer to the Unit’s website for a complete release on this Notice. A copy of the Notice can be found at https://www.irs.gov/pub/irs-drop/n-17-46.pdf.


Proposed regulations under FATCA and Chapter 3

The following would be implemented under the Proposed regulations (REG-132881-17):

  • Withholding on payments of gross proceeds would be removed from the regulations;
  •  There would be a deferral of withholding on foreign pass thru payments;
  •  Withholding on certain insurance premiums would be eliminated;
  •  Clarification on the definition of investment entity;
  •  Guidance for withholding agents on certain due diligence requirements to be provided; and
  •  Provide guidance on refunds and credits of amounts withheld.


The document in its entirety can be found at: https://www.irs.gov/pub/fatca/NPRM%20re%20Sections%201441-1474%20Regulations%202018%201212.pdf.


NJS Francis Building

Grand Turk, Turks and Caicos Islands

Telephone: (649) 338-3702, Fax (649) 946-1498, Email: This email address is being protected from spambots. You need JavaScript enabled to view it.


Should you have any queries, kindly contact the Exchange of Information Unit at the following:

Website: https://www.gov.tc/eoi/

Tel: 649 338 2065 / 5222

Fax:  649 946 2686