Public consultation launched on proposed regulations for US FATCA

Members of the public will be able to give feedback on the draft income tax regulations and a draft FATCA e-Tax guide.

SINGAPORE: A public consultation has been launched on proposed regulations to help financial institutions comply with the US Foreign Account Tax Compliance Act (FATCA).

In a joint statement on Monday (Sep 22), the Ministry of Finance, Monetary Authority of Singapore and Inland Revenue Authority of Singapore said that the proposed regulations will help financial institutions in Singapore comply with FATCA.

Members of the public will be able to give feedback on the draft income tax regulations, which set out the obligations for Singapore-based financial institutions in regards to FATCA, and a draft FATCA e-Tax guide.

The US FATCA requires all financial institutions outside the United States to regularly submit information on accounts held by US citizens to the US Internal Revenue Service. Failure to do so would result in a 30 per cent “withholding tax” on certain payments received from the US.

The public consultation, which starts Monday, will end on Oct 17