US finished FATCA regime use consulting in Baku
Baku, Fineko/abc.az. The U.S. Internal Revenue Service has conducted consultations in Baku on the application of FATCA (Foreign Account Tax Compliance Act).
The Azerbaijani Ministry of Taxes informs that Service’s representatives were received by Deputy Taxes Minister Natig Amirov.
“Consultations concerned the issues of information security in the process of FATCA application, readiness of regulatory framework and infrastructure, control and executive bodies for this. The sides agreed to continue exchange of information on progress in this area,” the Ministry reported.
To solve the issues related to the FATCA, the Cabinet of Ministers by order #103s from April 22 chose model 1A for signing an intergovernmental agreement with US and appointed the Ministry of Taxes as a body authorized for tax information exchange. The draft agreement was worked out by a special commission established in accordance with the other order of the Cabinet of Ministers. The agreement allows Azerbaijan to be included into the list of US partners within the FATCA starting from May 16:
As a result, the registration term of Azerbaijani financial institutions at the portal of the American Internal Revenue System has been extended from May 5 until December 31, 2014, thus lifting the threat of sanctions to be imposed by US from July 1.
At present, the agreement with US is under internal procedures and will be signed before December 31. Within the framework of this agreement the Ministry of Taxes will introduce the format of tax information exchange with US and provide the confidentiality of such exchange.
Model 1A provides tax information exchange through the authorized state body, while model 1B implies the direct registration and providing information by the financial institutions.
