Russia and America sign agreement on exchange of taxpayers' informationThe Federation Council of Russia, on Wednesday authorized the direct exchange of information between Russian banks and US tax authorities on US taxpayers, RIA Novosti reports.The US Foreign Account Tax Compliance Act (FATCA) requires foreign banks to supply the Internal Revenue Service (IRS) with information on the bank accounts of Americans. Under FATCA, signed into law in 2010, financial institutions worldwide are required to report details on the accounts and transactions of US taxpayer clients to the IRS and act as fiscal agents for the US, with the right to charge a 30 percent tax on their passive income related to the United States. If a bank does not join FATCA, it can be sanctioned.As under Russian law, banks are not allowed to disclose information to foreign government institutions, the US was previously in negotiations with Russia on signing an intergovernmental agreement that would simplify the process for all banks acceding to FATCA requirements.
The Federation Council of Russia, on Wednesday authorized the direct exchange of information between Russian banks and US tax authorities on US taxpayers, RIA Novosti reports.The US Foreign Account Tax Compliance Act (FATCA) requires foreign banks to supply the Internal Revenue Service (IRS) with information on the bank accounts of Americans. Under FATCA, signed into law in 2010, financial institutions worldwide are required to report details on the accounts and transactions of US taxpayer clients to the IRS and act as fiscal agents for the US, with the right to charge a 30 percent tax on their passive income related to the United States. If a bank does not join FATCA, it can be sanctioned.As under Russian law, banks are not allowed to disclose information to foreign government institutions, the US was previously in negotiations with Russia on signing an intergovernmental agreement that would simplify the process for all banks acceding to FATCA requirements.
