CONTINUEThis site uses cookies. By continuing to browse this site you are agreeing to our use of cookies. Find out more.
  1. Front Page
  2. News By Topic
  3. Bulgaria Concludes US FATCA Deal

Bulgaria Concludes US FATCA Deal

by Lorys Charalambous, Tax-News.com, Cyprus

10 December 2014


Bulgaria has formally signed up to the US's Foreign Account Tax Compliance Act (FATCA), just over six months after the two countries concluded a transitional "in substance" agreement.

FATCA, which was enacted by the US Congress in 2010 and took effect on July 1, 2014, is intended to ensure that the US Internal Revenue Service (IRS) obtains information on financial accounts held at foreign financial institutions (FFIs) by US persons. Failure by an FFI to disclose information on their US clients will result in a requirement to withhold 30 percent tax on payments of US-sourced income.

The US and Bulgaria reached an "in substance" agreement in April, under which the US temporarily regarded Bulgaria as complying with the FATCA provisions, pending the completion of final preparations in Bulgaria.

Countries that entered "in substance" agreements with the USA before July 1, 2014, were given until the end of December to sign a formal intergovernmental agreement (IGA). However, this deadline was recently extended for jurisdictions that show a firm resolve to sign an IGA as soon as possible.

The US Treasury has developed two alternative model IGAs, and Bulgaria's agreement follows Model 1, under which Bulgarian institutions will report information on US taxpayers to a central authority, which will then relay the information to the Internal Revenue Service.

TAGS: compliance | Foreign Account Tax Compliance Act (FATCA) | tax | FATCA | law | banking | Bulgaria | Internal Revenue Service (IRS) | ministry of finance | legislation | United States | Compliance | Tax

To see today's news, click here.

 















Tax-News Reviews

Cyprus Review

A review and forecast of Cyprus's international business, legal and investment climate.

Visit Cyprus Review »

Malta Review

A review and forecast of Malta's international business, legal and investment climate.

Visit Malta Review »

Jersey Review

A review and forecast of Jersey's international business, legal and investment climate.

Visit Jersey Review »

Budget Review

A review of the latest budget news and government financial statements from around the world.

Visit Budget Review »



Stay Updated

Please enter your email address to join the Tax-News.com mailing list. View previous newsletters.

By subscribing to our newsletter service, you agree to our Terms and Conditions and Privacy Policy.


To manage your mailing list preferences, please click here »