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The UK and USA have updated annex II of their agreement to implement the Foreign Account Tax Compliance Act (FATCA).
The move will see a wider range of financial institutions and products become effectively exempt from FATCA’s requirements. The revised annex also provides greater clarity on the categories of bodies that will be non-reporting UK financial institutions treated as deemed-compliant.
The UK and USA have updated annex II of their agreement to implement the Foreign Account Tax Compliance Act (FATCA).
The move will see a wider range of financial institutions and products become effectively exempt from FATCA’s requirements. The revised annex also provides greater clarity on the categories of bodies that will be non-reporting UK financial institutions treated as deemed-compliant.
The UK and the US signed a model intergovernmental agreement last September to improve international tax compliance and implement FATCA. It will see financial institutions passing information to HMRC, which will automatically share the data with the American Internal Revenue Service.
In related news, the Revenue has published a discussion document on the implementation of the model agreement to be entered into between the UK and crown dependencies and overseas territories to improve international tax compliance. Responses should be sent by email no later than 6 September.
