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Foreign Account Tax Compliance Act

The Foreign Account Tax Compliance Act (FATCA) was signed into U.S. law in March 2010. Its aim is to prevent U.S. taxpayers from using accounts held outside of the U.S. to evade taxes.

 

FATCA and, in some countries, related local regulations will require financial institutions to report annually on specified accounts held outside of the U.S. by U.S. taxpayers. This reporting will be made available to the U.S. Internal Revenue Service (IRS) either directly or through local regulatory agencies.

 

The Central Bank of the UAE is implementing the Foreign Account Tax Compliance Act (FATCA), in the UAE, in agreement with the U.S. government. The aim is to identify customer’s accounts that meet the definition of “U.S. Reportable Account”, according to the definition as per the IGA (Inter-governmental Agreement)

 

Please note that RAKBANK is unable to offer tax advice. For tax related questions please contact your professional tax advisor or refer to the IRS website.