The United States and Swiss governments have signed a memorandum of understanding on interpretations of their agreement on implementing the Foreign Account Tax Compliance Act, or FATCA on 7 June 2013 in Washington. The memorandum summarizes the obligations of Swiss financial institutions and confirms the simplified self-declaration process for an “exempt Swiss beneficial owners” under the FATCA agreement signed on 14 February 2013.
According to new rules, on conducting future business with US citizens by requiring banks and a range of other institutions to name their clients or apply a 30 per cent withholding tax. Under the Swiss-negotiated version, banks, securities dealers, insurance companies, trustees, foundation and company administrators would need their clients’ permission before they could identify them to the US authorities. Financial firms would be obliged to inform the US tax authorities if they have non-compliant accounts and funds.
