The United States Internal Revenue Service (IRS) has signed the Competent Authority Agreement (CAA) with Bahrain.
The US Treasury Department and IRS released publications for the final regulations under Foreign Account Tax Compliance Act.
Under FATCA, withholding agents must withhold tax on certain payments to foreign financial institutions (FFIs) that do not agree to report certain information to the IRS about their U.S. accounts or accounts of certain foreign entities with substantial U.S. owners
Amends FATCA provisions and coordinates FATCA regulations with preexisting tax rules
Form used to request the taxpayer identification numbers of US persons
Revised timeline for FATCA implementation, employer obligations under the Affordable Care Act, and impact of DOMA ruling on benefits for same sex spouses
Would bring EU exchange of information rules closer to FATCA standard
Switzerland joins US in fighting tax evasion by facilitating reporting and due-diligence standards
Beginning in January 2013, FATCA requires U.S. and Foreign Financial Institutions to annually identify and report their U.S. account holders.
The IRS has delayed the timelines for withholding agents and foreign banks to complete the due diligence requirements of the Foreign Account Tax Compliance Act (FATCA).