The UAE’s Ministry of Finance (MoF) has launched the UAE Foreign Account Tax Compliance Act (Fatca) Guidance Notes along with the Registration Form for entities to access the Fatca reporting portal on its website.

It is a part of the 2014 agreement signed between the UAE and US to implement the Fatca in the UAE, said a statement.

The Guidance Notes provide a detailed explanation of the Fatca and the terms and conditions for relevant financial institutions identified in the agreement and operating in the UAE banking, insurance and financial services sectors, it said.

The document also includes guidelines for submitting financial reports according to Fatca standards, the UAE’s framework and legislation as well as updates on the laws issued by the US Treasury Department.

All relevant financial institutions and entities identified within the agreement are required to register on the portal using the Registration Form included in the Guidance Notes, which will be provided by their licensed authorities, including the UAE Central Bank, Securities and Commodities Authority, Insurance Authority, and Dubai International Financial Centre.

The entities that are not licensed by these authorities can register via the ministry’s website on a designated webpage for Fatca, said the statement.

The financial institutions are required to submit information about financial accounts held by US persons or by foreign companies with one or more US shareholders that own more than 10 per cent of the company to the ministry by July 30.

Following registration, financial institutions will need to provide the following documentation: a copy of their work permit, data for any subsidiaries and audited financial reports for last year. They must also include copies of US citizens’ passports, visas and Emirates IDs to their compliance officer.

Younis Haji Al Khoori, Undersecretary of the MoF, said: “The launch of the UAE Fatca Guidance Notes and Registration Form is in line with the Cabinet’s decision to select Fatca’s first implementation model, and its directive to assign the Ministry as the point of contact for UAE financial institutions which are compliant with the agreement terms and IRS standards.

“The Guidance Notes provide a reference for financial institutions and serve as an implementation platform for the terms of Fatca. The Guidance Notes have been launched after the Ministry successfully linked federal and financial institutions to the IRS’s private electronic system.”

The ministry has advised financial institutions to seek professional consultation from specialised tax agencies to clarify any queries about the law’s requirements, said the statement.

It will submit its primary report for 2014 by September 30, it said.

Fatca was enacted by the US Congress in 2010 to target non-compliance by US taxpayers using foreign accounts. The law requires foreign financial institutions to provide annual reports on account information of customers who are US citizens, it added. - TradeArabia News Service