Tuesday, July 28, 2009
A Tax Information Exchange Arrangement (TIEA) between the United Kingdom and the Turks and Caicos Islands was signed in London on July 22, 2009.
The new TIEA with the Turks and Caicos Islands provides for comprehensive exchange of information to the Organization of Economic Cooperation and Development (OECD) and international tax standard in respect of UK direct taxes and value-added tax (VAT).
The agreement was signed by Andrew Allen, Acting Director Overseas Territories Directorate of the UK Foreign and Commonwealth Office, and The Honourable Royal Robinson, Deputy Premier and Minister for Health and Finance of the Turks and Caicos Islands.
This was the first TIEA to be signed by the Turks and Caicos Islands but its government also signed TIEAs with the Netherlands and Ireland on July 22 and expects to sign more soon.
The specific taxes covered by the agreement include, in the case of the UK, income tax, corporation tax, capital gains tax, inheritance tax, and VAT. In the case of the Turks & Caicos Islands, the specific taxes covered by the agreement include stamp duty, accommodation tax, and levies, duties, fines or exemptions relating to the importation, the exportation, transshipment, transit, storage and circulation of goods, as well as to prohibitions, restrictions and other similar controls on the movement of controlled items across national boundaries.
The agreement will come into force once both governments have completed their domestic ratification procedures.