Government approves draft agreement on FATCA with U.S.

11:35, 11.11.2016 1 min read

Ukraine's Cabinet of Ministers has approved a draft agreement with the U.S. government to improve the implementation of tax rules and apply the provisions of the U.S. foreign account tax compliance act (FATCA).

The decision is outlined in government resolution No. 821-r dated November 9, 2016 posted on the government's website.

Ukrainian Finance Minister Oleksandr Danyliuk is authorized to sign the agreement.

This resolution declared void previous similar decision (resolution No. 401 dated April 22, 2015).

The U.S. Congress endorsed FATCA in 2010: all foreign financial institutions are obliged to disclose information about funds on accounts of U.S. taxpayers and companies affiliated with them to the U.S. Internal Revenue Service (IRS) and act as tax agents.

The gradual introduction of the FATCA requirements for the institutions operating in all countries started on January 1, 2014 and will last until 2017 inclusively.