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Singapore – Initial Model 1 IGA With United States To Facilitate State’s Compliance With US FATCA.

20 May, 2014

 

Legal News & Analysis – Asia Pacific – Singapore – Tax

 

On 6 May 2014, the Singapore government announced that Singapore and the United States have substantially concluded discussions on an Intergovernmental Agreement (“IGA”), which will facilitate compliance with the U.S. Foreign Account Tax Compliance Act (“FATCA”) by Singapore-based financial institutions.

 

Under FATCA, a US law which targets non-compliance with tax laws by US persons using overseas accounts, all financial institutions outside of the United States are required to regularly submit information on financial accounts held by US persons to the US Internal Revenue Service (“IRS”).

 

Singapore has initialed a “Model 1 IGA” with the US and has been included in the US Department of the Treasury’s list of jurisdictions that are treated as having an IGA in effect. Under the Model 1 IGA, Singapore-based financial institutions will be required to report information on financial accounts held by US persons to the Inland Revenue Authority of Singapore (“IRAS”), which will in turn provide the information to the US IRS. Transmitting such information through the IRAS would likely help facilitate compliance by Singapore financial institutions, as their reporting obligations would be deemed met once they transmit the relevant information to IRAS.

 

Singapore-based financial institutions will have until 31 December 2014 to register as a Foreign Financial Institution within a Model 1 IGA jurisdiction and obtain a Global Intermediary Identification Number at the US IRS’s online FATCA registration portal.

 

Duane Morris Selvam LLP

 

For further information, please contact:

 

David Teo Shih Yee, Director, Duane Morris & Selvam

dteo@duanemorrisselvam.com

 

Homegrown Tax Law Firms in Singapore 

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