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. Switzerland Enacts Law To Support FATCA

Switzerland Enacts Law To Support FATCA

by Ulrika Lomas, Tax-News.com, Brussels

11 June 2014


The Swiss Federal Council has decided to bring the Foreign Account Tax Compliance Act (FATCA) Act, together with the ordinance on disclosure obligations, into force on June 30, 2014, to ease Swiss financial institutions' implementation of the new disclosure rules.

The Swiss parliament approved the FATCA-implementing Act in September 2013, at the same time as it approved the FATCA intergovernmental agreement between Switzerland and the US, which came into force on June 2, 2014, through an exchange of notes.

The FATCA agreement simplifies matters for Swiss financial institutions in their compliance with the US FATCA, which covers deposits held on behalf of US persons. FATCA implementation in Switzerland will be facilitated by a Model Two Intergovernmental Agreement, which requires Swiss financial institutions to disclose account details directly to the US tax authority with the consent of the US clients concerned. The US will have to request data on any recalcitrant clients through the normal administrative assistance channels.

Meanwhile, the Federal Council is seeking to switch to Model One, which provides for the automatic exchange of information through a centralized authority. To this end, it approved the draft mandate for negotiations with the US on May 21, 2014.

Worldwide implementation of FATCA will commence on July 1, 2014.

TAGS: compliance | tax | tax compliance | tax avoidance | FATCA | tax authority | agreements | Switzerland | United States | regulation | individual income tax | Compliance | Tax | Tax Evasion

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 »