Foreign Account Tax Compliance Act (FATCA)

On December 19, 2013, the Government of Bermuda signed a Model 2 Intergovernmental Agreement (IGA) with the Government of the United States to improve international tax compliance and facilitate the implementation of the U.S. Foreign Account Tax Compliance Act (FATCA). Under the Agreement, Reporting Bermuda Financial Institutions are required to report financial account information directly to the US Internal Revenue Service in respect of U.S. reportable accounts on an annual basis.

The legal framework supporting the FATCA in Bermuda is the U.S.A.–Bermuda Tax Convention Act 1986, as amended.

The information to be reported includes the account holder's name, address, U.S. Taxpayer Identification Number (TIN), account number, account balance, and payments (e.g., interest, dividends, gross proceeds).

REQUIREMENTS

• All Reporting Bermuda Financial Institutions must:

• Register with the U.S. IRS

• Obtain a Global Intermediary Identification Number (GIIN).

• Comply with ongoing FATCA due diligence and reporting requirements

IRS FATCA Registration Portal: https://sa.www4.irs.gov/fatca-rup/

Bermuda Financial Institutions are encouraged to monitor updates issued by the U.S. Internal Revenue Service to ensure ongoing compliance with FATCA due diligence and reporting obligations.

RESOURCES

For more information, please visit the U.S. IRS FATCA page

https://www.irs.gov/businesses/corporations/foreign-account-tax-compliance-act-fatca