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Economy and Banking Sector of the Turks and Caicos Islands

Withholding Tax

Withholding taxes are imposed at source of income and are often applied to dividends, interest, royalties, rent and similar payments. The rates of withholding tax are often reduced by double taxation agreements.

Withholding Tax Rates in the Turks and Caicos Islands: 0.0 - 0.0%

Withholding tax rates applied on payments of interest and dividends in Turks and Caicos Islands are shown in Table 1.

Dividends Interest
Natural Persons (residents) 0.0 %0.0 %
Natural Persons (non-residents) 0.0 %0.0 %
Table 1. Withholding tax rates in Turks and Caicos Islands.

Information Exchange

There are 3 ways for jusrisdictions to exchange information on tax matters:

  • spontaneously;
  • on request;
  • automatically.

Spontaneous exchange of information is provision of information that is forseeably relevant to another party without a request being previously sent.

Tax Information Exchange Agreements (TIEAs) enable exchange of information on request relating to a specific tax investigation, either criminal or civil.

Automatic information exchange allows jurisdictions to exchange information automatically, without having a specific tax investigation.

Exchange on Request: 17 Signed Agreements

Turks and Caicos Islands signed TIEAs which already came info force with the following jurisdictions :

AU Australia
CA Canada
DK Denmark
FO Faroe Islands
FI Finland
FR France
DE Germany
GL Greenland
IS Iceland
NL Netherlands
NO Norway
PT Portugal
SE Sweden
GB United Kingdom

There are also several agreements between Turks and Caicos Islands and other jurisdictions which was signed but haven't yet come into force:

GG Guernsey
IE Ireland
NZ New Zealand

Automatic Exchange: Starts in September 2017

Turks and Caicos Islands signed the automatic information exchange agreement on 29 October 2014 and committed to start the automatic information exchange in September 2017.

Automatic Excnange: 46 Bilateral Agreements to Receive Information

the Turks and Caicos Islands has signed bilateral agreements with 46 jurisdictions to automatically receive information:

AR Argentina
AU Australia
AT Austria
BE Belgium
BG Bulgaria
CA Canada
CN China
CO Colombia
HR Croatia
CZ Czech Republic
DK Denmark
EE Estonia
FO Faroe Islands
FI Finland
FR France
DE Germany
GR Greece
GL Greenland
HU Hungary
IS Iceland
IN India
IE Ireland
IT Italy
JP Japan
KR Korea, Republic of
LV Latvia
LI Liechtenstein
LT Lithuania
LU Luxembourg
MY Malaysia
MT Malta
MU Mauritius
MX Mexico
NL Netherlands
NZ New Zealand
NO Norway
PL Poland
PT Portugal
SM San Marino
SC Seychelles
SK Slovakia
SI Slovenia
ZA South Africa
ES Spain
SE Sweden
GB United Kingdom

Automatic Excnange: 0 Bilateral Agreements to Send Information

the Turks and Caicos Islands has not singed any bilateral agreements to automatically send information.

Further Information

FATCA

Foreign Account Tax Compliance Act (FATCA) which became law in the United States in March 2010, focuses on reporting made by foreign financial institutions about financial accounts held by US taxpayers or foreign entities in which US taxpayers hold a substantial ownership interest. The FATCA-reporting is facilitated by Intergovernmental Agreements (IGAs).

FATCA Status in the Turks and Caicos Islands
IGA in effect since 01 December 2014, Model 1

Turks and Caicos Islands has FATCA agreement with the U.S. in effect since 01 December 2014 (Intergovernmental Agreement Model 1). Financial institutions operating in Turks and Caicos Islands are required to identify U.S. taxpayers by January 1, 2017 and to report the information for 2017 and the subsequent years. The agreement is non-reciprocal: Turks and Caicos's financial accounts hold in U.S. financial institutions will not be reported to Turks and Caicos's authorities.

Further Information