The Russian parliament has allowed a bill to permit financial institutions to observe with the United States’ Foreign Account Tax Compliance Act (FATCA). US Congress has passed FATCA in 2010, which will be effective on July 1, 2014 and it is proposed to guarantee that US authorities obtain information on accounts provided by foreign financial institutions (FFIs) to US persons. If FFI fails to reveal information about their US clients will effect in a condition to 30% tax withhold on payments of US-sourced income.
Now the bill will allow Russian banks to move information about their customers to foreign tax authorities and also needs banks based abroad to give information on their Russian account holders to the Russian Federal Tax Service.
