The President signed into law the dot. FATCA

Passing between tax administrations Polish and US information on accounts and income tax residents predicts signed by the president Bronislaw Komorowski law on ratification of the agreement with the USA on the use of so-called FATCA Act.

As reported by the presidential office, in terms of the Act of 20 March, the ratification of the Agreement between the Government of the Polish Republic and the Government of the United States of America on improving the fulfillment of international obligations and to implement tax legislation and accompanying FATCA Final Arrangements.

Under the agreement, Polish tax administrations and the US will exchange information on accounts and income tax residents. Agreement on FATCA (with English Foreign Account Tax Compliance Act) Polish governments and the United States signed on 7 October 2014.

The aim of the US Act on the disclosure of foreign accounts is obliging foreign financial institutions to enter into agreements directly with the US tax authorities. It is about their commitment to transfer data to the United States accounts owned by American taxpayers (residents, citizenship or permanent residency in the US).

In the event of refusal to conclude an agreement with the US tax authorities to provide – for financial institutions and those receiving income in the US through these institutions – a sanction in the form of income tax (revenue) derived from sources in the US tax of 30 percent. American law is intended to prevent the exploitation of foreign financial institutions to hide income and the creation of structures for aggressive tax planning by US taxpayers.

In accordance with provisions of the agreement Polish financial institutions will be the ones to collect and transmit data to the national tax administration, which will automatically make them available on the American side. FATCA provisions will primarily affect banks, investment funds and trusts, and insurance companies; records from under its pension funds were excluded.

The agreement provides for the principle of reciprocity in communication. “In this connection, Poland will have access on an automatic exchange of information, data about the owners, turnover and balances of accounts held in the US to Polish tax residents “- pointed Chancellery of the President in a statement. Intergovernmental agreement with the US ws. FATCA has signed over 40 countries. Among European Union countries are, among others, Germany, Spain , France, Italy and the United Kingdom. (PAP)