UAE Releases FATCA Guidance, Registration Form
by Lorys Charalambous, Lowtax.net, Cyprus
21 July, 2015
The Finance Ministry of the United Arab Emirates has released US Foreign Account Tax Compliance Act guidance notes and the registration form for entities to access the FATCA reporting portal.
FATCA, enacted by the US Congress in 2010, is intended to ensure that the US obtains information on accounts held abroad 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 guidance notes provide a detailed explanation of FATCA and the terms and conditions for relevant financial institutions identified in the agreement and operating in the UAE banking, insurance, and financial services sectors. The document also includes guidelines for submitting financial reports according to FATCA standards, the UAE's framework and legislation, and an overview of the laws issued by the US Treasury Department.
All relevant financial institutions and entities identified within the agreement are required to register for the portal using the registration form included in the guidance notes.
Following registration, financial institutions need to provide the following documentation: a copy of their work permit, data for any subsidiaries, and audited financial reports for 2014. They must also include copies of US citizens' passports, visas, and Emirates IDs to their compliance officer.
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