It was reported in the IRAS’ websites on 6 and 7 May 2014 that both Singapore and the US are to expect to sign the US Foreign Account Tax Compliance Act (“FATCA”) in the second half of 2014. Singapore will adopt the Model 1 IGA.
The effect of this is that the Singapore-based financial institutions will have until 31 December 2014 to register as a Foreign Financial Institution within the Model 1 IGA jurisdiction and obtain a Global Intermediary Identification Number at the US Internal Revenue Service’s online FATCA registration portal. This will ensure that there is no FATCA-related withholding on payments made to them from the US.
IRAS, MAS and MOF will provide Singapore-based FIs with further guidance on how to comply with their FATCA obligations. The MOF will hold a public consultation on the draft guidance before it is finalised.
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