US-Croatia FATCA agreement enters into force

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The Foreign Account Tax Compliance Act (FATCA) Agreement between the United States and Croatia entered into force on 27 December 2016. The agreement was signed on 20 March 2015 for implementation of the Foreign Account Tax Compliance Act (FATCA).

The US-Croatia intergovernmental agreement IGA states that it was signed pursuant to the Council of Europe-OECD Mutual Assistance Treaty (1988), which authorizes the exchange of information for tax purposes, including on an automatic basis.

The US-Croatia IGA is based on the reciprocal Model 1A agreement. Accordingly, financial institutions in Croatia will be required to report tax information about US account holders to the government of Croatia, which will in turn relay that information to the US Internal Revenue Service (IRS). The United States will also provide similar tax information to Croatia regarding residents of Croatia with accounts in the United States.

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