NewsCase StudiesEvents

Bulgaria and the U.S. agree on the implementation of FATCA

Also in the news...

Why an office environment needs branded clothing

Society’s approach to work attire has shifted in recent years, with casual dressing not only widely accepted but also expected. While this enables employees to express their individuality; opting for branded clothing benefits businesses, their office culture, and professional image.

UK and Switzerland's negotiations for an enhanced trade agreement

UK-Switzerland enhanced free trade agreement negotiations

Information on key security and political risks which UK businesses may face when operating in Hong Kong.

Guidance Overseas business risk for Hong Kong

Local sites and numbers of employees linked to businesses involved in international trade in goods, by subnational areas of the UK 2022

The release reports on the number of local sites and the number of employees within each ITL3 area linked to a business carrying out international trade in goods.

Foreign travel advice Sudan

FCDO advises against all travel to Sudan.

Bulgaria and the U.S. agree on the implementation of FATCA

Back to News

The Bulgarian National Revenue Agency and the U.S. Department of Finance agreed on the text of the agreement between Bulgaria and the United States, aimed to improve the compliance of the tax legislation from an international aspect and the enforcement of the Foreign Account Tax Compliance Act (FATCA), voted in 2010. To this effect, Bulgaria is included in the list of countries the Unites States is having a FATCA agreement in force with.

FATCA obliges all foreign financial institutions to provide information to the International Revenue Service (IRS) related to those financial accounts which belong to US taxpayers or foreign companies that are controlled by US taxpayers (with more than 10% direct or indirect participation) . Foreign financial institutions that do not participate in FATCA will be subject to 30% withholding tax in the US, which will make their operations on the US markets extremely difficult. Thus, US tax payers who own financial assets abroad must declare them in the IRS and for this purpose FATCA introduces a regime according to which the foreign financial institutions can chose either to assist IRS (participating) or not (non-participating).

One of the essential obligations of the participating financial institutions is to register and receive a special identification number (GIIN). The registration may be done exclusively online via a safe, web -based system maintained by the IRS. The address for registration is www.irs.gov/fatca-registration

The deadline for the registration of financial institutions located in countries which have signed the Model 1 agreement, Bulgaria being among them, has been prolonged until Jan 1, 2015. Until that date, the financial institutions are not required to specify the GIIN and will not be subject to 30% withholding tax in the U.S. By the beginning of June 2014, the IRS is expected to announce the list of the participating financial institutions which will be updated on monthly basis.

Article Supplied by Eurofast

You are not logged in!

Please login or register to ask our experts a question.

Login now or register.