Entry into Force of the Intergovernmental Agreement between the Dominican Republic and the United States on the Exchange of Reportable Bank Account Information
The Directorate General of Internal Taxes announced the formal entry into force of the United States-Dominican Republic Intergovernmental Agreement to Improve International Tax Compliance (IGLA) and to be able to apply the Foreign Account Tax Compliance Act (FATCA), ratified by the National Congress.
The agreement regulates the exchange of information, through an automated system, of Reportable Accounts between the United States and the Dominican Republic. In order to comply with the agreement, Dominican financial entities must have identified the accounts of individuals, legal entities or other specialized entities such as U.S. trusts, in order to submit the relevant information to the U.S. Internal Revenue Service (IRS).
In this order, the United States must submit to the Dominican Government information on accounts of residents of the Dominican Republic held in U.S. financial institutions.
