(September 22, 2014)
On September 22, 2014, the Singaporean government opened a consultation on proposed regulations to help financial institutions to comply with U.S. FATCA.
The Ministry of Finance (MOF), Monetary Authority of Singapore (MAS) and the Inland Revenue Authority of Singapore (IRAS) have proposed regulations to help financial institutions in Singapore comply with the U.S. Foreign Account Tax Compliance Act (FATCA). FATCA requires all financial institutions outside of the U.S. to regularly submit information on financial accounts held by U.S. persons to the U.S. Internal Revenue Service, or face a 30% withholding tax on certain gross payments received from the U.S.
To ease the FATCA compliance of financial institutions here, Singapore has substantially concluded a Model 1 Intergovernmental Agreement (IGA) with the U.S. The IGA will be signed in the fourth quarter of 2014.
MOF, MAS, and IRAS are inviting public feedback on:
- the draft Income Tax (International Tax Compliance Agreements) (United States of America) Regulations 2014, which sets out the due diligence and reporting obligations of Singapore-based financial institutions in relation to the FATCA IGA; and
- the draft FATCA e-Tax Guide, which provides further explanation of those obligations (this is the draft version of a 98 page long IRAS e-Tax Guide).
The public consultation will be from 22 September 2014 to 17 October 2014.
For further information click here to be forwarded to the press release the Singaporean Ministry of Finance issued in this respect. The press release of the Singaporean Ministry of Finance contains a link to the draft versions of the documents on which the Singaporean government is looking for feedback (or click here to be directly forwarded to the webpage of the Singaporean Ministry of Finance where you can find a.o. the draft versions of the documents on which the Singaporean government is looking for feedback).
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