FATCA System Goes Live In Jersey
by Jason Gorringe, Lowtax.net, London
06 February, 2015
Jersey-based financial institutions are now able to register with local authorities in preparation for the submission of the first reports under the US Foreign Account Tax Compliance Act (FATCA).
FATCA requires financial institutions outside the US to report information on financial accounts held by their US customers to the Internal Revenue Service (IRS). Jersey has concluded an intergovernmental agreement with the US to enable financial institutions to submit data to a central authority in Jersey, which will then share that data with the Internal Revenue Service.
A test platform has been available to local financial institutions since the beginning of 2015 to test their file formats and familiarize themselves with the FATCA return process. Now financial institutions can register on the live system and submit information required under the FATCA rules. The information required under FATCA must be submitted by June 30 each year.
The Minister for Treasury and Resources Alan Maclean said: "The launch of the online reporting platform means that our financial institutions will be in the best possible position to ensure that they meet the June 30 reporting deadline for FATCA and avoid the 30 percent US withholding tax. It further demonstrates that Jersey is strongly committed to supporting international initiatives designed to improve tax transparency."
Financial institutions in Jersey should have already registered with the IRS in order to obtain a Global Intermediary Identification Number (GIIN). When registering in Jersey they must enter the GIIN and other information, including a designated point of contact.
See all of today's news