UAE set to comply with new US tax law

UAE Central Bank Governor Sultan bin Nasser Al Suwaidi has said that the country is considering to comply with the Foreign Accounts Tax Compliance Act, or Fatca.

Speaking at a seminar on the new US Fatca, in which banks and other financial institutions in the UAE were invited, Al Suwaidi said UAE authorities are considering to sign an agreement with the United States in this regard.

The governor asked authorities to formulate procedures to facilitate compliance with the US law, seeking to set clear instructions for financial institutions under their supervision in line with the act’s requirements.

The new tax law requires foreign banks and financial entities to find any American account holders and disclose their balances, receipts and withdrawals to the US Internal Revenue Service, or be subject to a 30 per cent withholding tax on income from US financial assets held by banks or financial entities.

Read more: http://www.khaleejtimes.com/kt-article-display-1.asp?xfile=/data/uaebusiness/2013/March/uaebusiness_March435.xml&section=uaebusiness