An intergovernmental agreement (IGA) for the implementation of the Foreign Account Tax Compliance Act (FATCA) has signed between Singapore and the United States, on December 9, 2014.
FATCA was enacted by the US Congress in 2010 and took effect on July 1, 2014, in order to ensure that the US Internal Revenue Service (IRS) obtains information on financial accounts held at foreign financial institutions (FFIs) by US persons.
Under the agreement, Foreign Financial Institutions (FFIs) in Singapore will report the information required under FATCA about U.S. accounts to the Singapore Government, which in turn will report the information to the IRS. A 30 percent tax on payments of US sourced income will be withheld if FFI failure to disclose information on their US clients. This agreement is reciprocal, meaning that the United States will also provide similar tax information to the Singapore Government regarding individuals and entities from Singapore with accounts in the United States.
