Compliance
US Inks Model 1 Inter-Governmental Tax Agreement With Singapore
Singapore has become the latest country to reach an agreement with the US to implement the Foreign Account Tax Compliance Act.
Singapore has become the latest country to reach an agreement
with the US to implement the Foreign Account Tax Compliance
Act.
The deal has been agreed in substance and is expected to be
completed in the second half of 2014, the Singapore Ministry of
Finance said in a statement.
Under the Model 1 Inter Governmental Agreement, Singapore-based
financial institutions will be required to report tax information
about US account holders directly to the Inland Revenue Authority
of Singapore, which will relay that information to the US
Internal Revenue Service.
FATCA is set to take effect on July 1 and requires all financial
institutions outside of the US to regularly submit information on
financial accounts held by US persons to the IRS.
Model 1 IGA (issued in July 2012) highlights and benefits
include: a relaxation of deadlines; simplified due diligence; and
increased clarity around due diligence with country specific
provisions, as stated on the Thomson Reuters website.
A total of 28 countries have now signed tax treaties with the US
in connection with FATCA, including the UK, Canada, Ireland,
Germany, France, the Netherlands, Switzerland and Italy.
