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Post by Sapphire Capital on May 3, 2014 9:17:04 GMT 4
The Foreign Account Tax Compliance Act (“FATCA”) is a US tax measure enacted in 2010 to prevent and detect US tax evasion and improve taxpayer compliance. It targets tax non-compliance by US taxpayers with foreign accounts by imposing a 30% withholding tax on their transactions with foreign financial institutions and non-financial foreign entities that fall within the scope of FATCA unless the institution concerned has concluded an agreement with the US Internal Revenue Service defining its reporting obligations, or the institution's home country has concluded an Inter-Governmental Agreement ("IGA") covering the relevant matters. In July 2012 the US authorities published a model IGA known as IGA Model 1, which allows institutions subject to FATCA to report information directly to their tax authorities who will in turn transmit the information to the US authorities. In the annexes of Model IGA 1 there are lists indicating products, accounts and institutions that are considered to be compliant or exempt. An alternative version, IGA Model 2, was introduced later that year in order to comply with the laws of certain countries including such as Switzerland and Japan. Under IGA Model 2 affected entities report to the relevant US authorities rather than their domestic authorities. text at: www.gpo.gov/fdsys/pkg/PLAW-111publ147/pdf/PLAW-111publ147.pdfFATCA.pdf (238.73 KB)
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Post by ukipa on May 3, 2014 17:42:54 GMT 4
Thank you RL for sharing this information with us.
Best wishes.
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