Uzbekistan, US Sign FATCA Agreement

United States and the Republic of Uzbekistan have inked an agreement to adopt of the Foreign Account Tax Compliance Act (FATCA), the press release from the US Embassy in Tashkent has said, according to UzDaily.

Ambassador Pamela Spratlen and Chairman of the Uzbek State Tax Committee, Botir Parpiyev penned the Inter-Governmental Agreement (IGA) to enhance International Tax Compliance as per FACTA (Foreign Account Tax Compliance Act).

Uzbekistan is the first Central Asian republic to sign an IGA on FATCA with the United States. The IGA is intended to ensure compliance with US tax laws for citizens of the United States who are working in Uzbekistan, the statement from the embassy said.

FATCA requires all financial institutions operating outside of the United States to periodically submit data on bank and financial accounts held by US citizens to the IRS (Internal Revenue Service), or face a 30 percent withholding tax on payments coming from the United States.