This article was authored by Scott D. Michel for Singapore Business Review. It discusses the recent announcement that Singapore is modifying its Exchange of Information (EOI) regime, including issuing a notice that it intended to conclude an "intergovernmental agreement" ("IGA") with the U.S. for implementation of the Foreign Account Tax Compliance Act ("FATCA"). If this occurs, Singapore's financial institutions and similar entities will join those of other nations, including major financial centers such as Switzerland and probably Hong Kong, in complying with FATCA's due diligence and automatic disclosure provisions next year. This will have an impact on U.S. persons who have financial accounts in Singapore, especially those who may not be in full compliance with their tax and reporting obligations. To view the full article, please go to Singapore Business Review's website.
Excerpt taken from the article.
The Ministry's action is consistent with continuing efforts by Singapore to move toward a more transparent EOI regime that is in line with evolving global standards.
The implications are profound for any U.S. citizen, green card holder or tax resident who has Singapore-based financial accounts or other financial assets, such as life insurance, retirement plans and the like.
FATCA will require banks and other entities to ascertain which clients are subject to the U.S. tax system, to ask them to sign a W-9 form making their account transparent to the IRS and a waiver of domestic bank secrecy or confidentiality rules, and to begin in 2014 to share data with the IRS regarding their assets.
This article is designed to give general information on the developments covered, not to serve as legal advice related to specific situations or as a legal opinion. Counsel should be consulted for legal advice.