Malaysia Delays FATCA Reporting Deadline
The Inland Revenue Board (IRB) has informed Malaysian financial institutions (MYFIs) that their filing deadline in respect of the 2014 reporting year under the US Foreign Account Tax Compliance Act (FATCA) has been deferred from June 30, 2015.
FATCA requires all FIs outside the United States to submit regular information on financial accounts held by US persons to the Internal Revenue Service (IRS), or otherwise face a 30 percent withholding tax on certain payments of US-sourced income.
To ease FATCA compliance for MYFIs, Malaysia agreed a Model 1 Intergovernmental Agreement (IGA) with the United States on June 30, 2014. Model 1 IGAs provide for FIs to report account information relating to US persons to their relevant domestic tax authority – in Malaysia’s case, the IRB – which, in turn, shares this information with the IRS.
However, as the Malaysia-US IGA is still being finalized, the IRB has indicated that a new filing deadline date will be notified to MYFIs in due course.
