The United Arab Emirates (UAE) and US signed an Intergovernmental Agreement (IGA) to implement the Foreign Account Tax Compliance Act (FATCA) of United States.
The US congress enacted FATCA in 2010, taking effect on July 1, 2014, desire to ensure that the United States obtains information on accounts held at foreign financial institutions by US persons. If the foreign financial institutions (FFIs) fail to disclose information on their US clients, 30 % tax on payments will be withheld of US-sources income.
Although the UAE has only reached an initial agreement on implementing FATCA, the US will treat it as having a full agreement in effect until the end of 2014.
