FATCA

Cyprus: FATCA data submission begins for 2017

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The Cyprus Tax Department has notified financial institutions and their representatives that the data submission under the FATCA Intergovernmental Agreement for the year 2016 has started. This process will be performed through the Government Gateway Portal ‘Ariadni’ using XML files.

The submission process requires the following steps:

  • Register with the Government Gateway Portal ‘Ariadni’ (www.ariadne.gov.cy) following the relevant procedures.
  • Register with the FATCA / CRS e-service using the option ‘Financial Institution Registration’ or ‘Representative Registration’.
  • Submit the information selecting the option ‘Submit XML Files’.

With the submission of every XML file a validation check will be performed (against the XSD files) and the user will be informed immediately. Additional checks will be performed regarding the content of each file, at a later stage, with the user to be informed through the email address stated during the FATCA/CRS e-service registration.

Saudi Arabia-Intergovernmental agreement to implement FATCA approved

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The cabinet of Saudi Arabia officially approved the Intergovernmental Agreement (IGA) between Saudi Arabia (KSA) and the United States (US) on 6 February 2017. The agreement would improve international tax compliance and implement the Foreign Account Tax Compliance Act (FATCA).

According to the agreement, KSA based financial institutions will be considered as compliant with FATCA and therefore will not be subject to the 30% withholding tax on US source income and gross proceeds.

If the financial institution fails to comply with the IGA requirements, the General Authority for Zakat and Tax may subject the relevant financial institutions to penalties.

US: FATCA agreement signed with Ukraine

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An intergovernmental agreement between Ukraine and the United States was signed on 7 February 2017 to improve international tax compliance with respect to the US Foreign Account Tax Compliance Act (FATCA).

The agreement helps to reduce the opportunities for financial fraud and tax evasion, to promote a better exchange of information between Ukraine and the United States. FATCA will enable Ukrainian banks to share reporting on financial accounts maintained by U.S. citizens with the U.S. Internal Revenue Service (IRS). The United States enacted FATCA in 2010 to combat offshore tax evasion by encouraging transparency and obtaining information on accounts held by U.S. taxpayers in other countries.

Algeria ratifies FATCA agreement with United States

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Algeria has ratified an intergovernmental agreement signed on October 2015 with the United States by way of Presidential Decree No. 16-328, as published in Official Gazette No. 74 of 18 December 2016.

The US-Algeria IGA is based on the non-reciprocal Model 1B Agreement (No TIEA or DTC). Accordingly, financial institutions in Algeria will be required to report tax information about US account holders to the government of Algeria, which will in turn relay that information to the US Internal Revenue Service (IRS).

US: FATCA agreement signed with Greece

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An intergovernmental agreement between Greece and the United States was signed on 19th January 2017 to improve international tax compliance with respect to the US Foreign Account Tax Compliance Act (FATCA).

US and Taiwan sign Foreign Account Tax Compliance Act (FATCA) Agreement

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The United States and Taiwan signed a Foreign Account Tax Compliance Act (FATCA) Agreement, on 22 December 2016.

The US-Taiwan intergovernmental agreement (IGA) is based on the Model 2 Agreement which can be implemented where there is no tax information exchange agreement or double tax convention. Accordingly, financial institutions in Taiwan are required to report directly to the US Internal Revenue Service (IRS). This requirement is supplemented by the exchange of information upon request.

Article 11(1) of the US-Taiwan IGA provides that the IGA will enter into force on the date of Taiwan’s written notification to the United States that Taiwan has completed its necessary internal procedures for entry into force of the IGA.

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.