Tax chief clarifies FATCA reporting
FIRMS STILL HAVE to report transactions with US citizens to the Bureau of Internal Revenue (BIR) despite registering with the Internal Revenue Service (IRS), a government official said.
BIR Commissioner Kim S. Jacinto-Henares said that while many local firms had committed to supply data to the IRS to comply with the Foreign Account Tax Compliance Act (FATCA), an intergovernmental agreement (IGA) will supersede this.
“Once the FATCA IGA is signed, then all reports will be done through the BIR,” Ms. Jacinto-Henares yesterday said.
A total of 178 local firms have signed up as foreign financial institutions with the IRS in line with the FATCA, which took effect this month and seeks to make Americans holding accounts abroad pay the right taxes.
