The General Tax Directorate of Czech Republic has released frequently asked questions (FAQs) about the implementation and application of the US Foreign Account Tax Compliance Act (FATCA) agreement between the Czech Republic and the United States on its website, which entered into force on 1st January 2015. This treaty has entered into force on 18th December 2014. Under the FATCA agreement, financial institutions in the Czech Republic will be needed to report tax information regarding US account holders to the government of the Czech Republic. The FAQs deal with:
- the subjective chance of the agreement, i.e. which financial institutions are needed to report the information in question;
- the process and forms for submitting FATCA reports to competent tax authority;
- other relevant responsibilities of the financial institutions.