Azerbaijani President approves intergovernmental agreement with the US FATCA
Azerbaijani President Ilham Aliyev approved the intergovernmental Azerbaijan-US agreement on “Improving compliance with Azerbaijan and the United States of international rules on tax requirements and fulfilling the requirements of the Act on the taxation of foreign accounts (Foreign Account Tax Compliance Act, FATCA)”.
The relevant law is published in the official website of the head of Azerbaijan.
This agreement was signed on September 9, 2015 in Baku.
According to the document, the competent authority for the implementation of the agreement is the Ministry of Taxes of Azerbaijan and the US Treasury Department.
The agreement defines the criteria (size of account balances), under which the accounts of individuals and entities subject to inspection under the FATCA.
Azerbaijan was included in the number of partner countries the US FATCA May 16, 2014.
Azerbaijan and the US will also have to sign an agreement on the format of the practical organization of data exchange between the relevant authorities of the parties, on the storage of privacy and other issues.
FATCA – enacted in the US in 2010 a law under which foreign banks must either be tax agents of the American tax authorities, or risk the fact that international bank transfers may be forcibly retained 30% if the counterparty bank or a correspondent bank considers that the beneficiary is a taxable person in the United States and the source of funds transferred is the income associated with the United States. FATCA entered into force on 1 July 2014.
