Norris McLaughlin & Marcus, P.A.

Blogs > Business Without Borders

U.S. and Switzerland Sign FATCA Agreement

Posted on March 4th, 2013 | Author: Norris McLaughlin & Marcus

On February 14, 2013, the Treasury Department announced that the United States and Switzerland have signed an agreement to implement provisions of the Foreign Account Tax Compliance Act (FATCA).

The U.S.-Switzerland agreement requires Switzerland to direct all reporting Swiss financial institutions to register with the IRS by Jan. 1, 2014, and to comply with FATCA due-diligence, reporting, and withholding requirements. Switzerland also agrees to instruct reporting Swiss financial institutions to request certain information from pre-existing account holders and report it to the IRS and to obtain consent from new account holders to report this information as a condition of opening the account.

The United States is obligated to treat reporting Swiss financial institutions that register with the IRS and comply with the terms of an FFI agreement as complying with FATCA and not subject to withholding under FATCA.

Please click here for more detail and, certainly, contact your tax advisor to see what impact this may have on your individual situation.