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Singapore signs agreement to implement FATCA

Staff writer |
Singapore and the United States have signed an agreement which will enable Singapore-based financial institutions to more easily comply with the US Foreign Account Tax Compliance Act.

The two countries have initialled a model intergovernmental agreement, which requires Singapore-based financial institutions to report information on financial accounts held by US persons to the Inland Revenue Authority of Singapore (IRAS), which in turn will provide the information to the US Internal Revenue Service (IRS).

The countries expect to sign the agreement in the second half of the year, a statement on the Monetary Authority of Singapore’s website said.

The Singapore regulator said transmitting the information through IRAS helps to ease the compliance burden for local financial institutions as their reporting obligations would be deemed met once they have transmitted the information to IRAS.

By December 31, Singapore-based financial institutions will have to register as a foreign financial institution and obtain a global intermediary identification number at the US IRS’ online FATCA registration portal. This will ensure that there is no FATCA-related withholding tax on payments made to them from the US

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