UAE To Conclude FATCA IGA This Month
The Ministry of Finance of the United Arab Emirates (UAE) held a press conference on February 15, 2015, to discuss the latest developments regarding the draft agreement on implementing the US Foreign Account Tax Compliance Act (FATCA).
FATCA, which took effect on July 1, 2014, is intended to ensure that the US obtains information on accounts held at foreign financial institutions (FFIs) by US persons. Failure by an FFI to disclose information on their US clients will result in a requirement to withhold 30 percent tax on payments of US-sourced income.
The UAE opted to sign a Model 1 Intergovernmental Agreement (IGA) with the US, which provides for the automatic exchange of tax information between the UAE’s Finance Ministry and the US Internal Revenue Service. The agreement was signed in substance by the UAE in June 2014.
During the recent conference, Younis Haji Al Khoori, Undersecretary of the Finance Ministry, said that the draft agreement will be concluded by the UAE this month, with the first data exchanges taking places from September 2015.
Source: tax news – UAE To Conclude FATCA IGA This Month
