Monday 16 June 2014
The Director of Income Tax has today provided clarity regarding certain effective dates in Guernsey's Intergovernmental Agreements (IGAs) with the United Kingdom (UK) and the United States of America (US) relating to FATCA. Details of changes made to Annexes II and III of the UK Agreement will be published in the very near future.
In May 2014, the US announced a six month delay to the new entity account on-boarding rules, from 1 July 2014 to 1 January 2015, for the operation of the US FATCA regulations, which can be extended to the US IGA.
HMRC has recently announced that the UK will not adopt a similar delay.
The Director has confirmed that for the purposes of the UK Agreement, Guernsey Financial Institutions will be required to have both new entity and individual account on-boarding procedures in place by 1 July 2014, in line with the requirements of the UK IGA.
The Director has confirmed his agreement to the six month US deferral. As a consequence, for the purposes of that IGA, Guernsey Financial Institutions will be required to have new individual account on-boarding procedures in place by 1 July 2014 and new entity account on-boarding procedures in place by 1 January 2015.
Annexes II and III of the UK IGA have been amended to incorporate changes to the wording on Partner Jurisdiction Accounts and an addition to the Exempt Beneficial Owners category to include a section on Limited Capacity Exempt Beneficial Owners, which covers charities.
The revised annexes will be published in the very near future.