FOREIGN ACCOUNT TAX COMPLIANCE ACT (FATCA) – BERMUDA

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, commonly referred to as FATCA (Foreign Account Tax Compliance Act). Under this Agreement, Reporting Bermuda Financial Institutions are required to report financial account information directly to the US Internal Revenue Service (IRS) in respect of U.S. reportable accounts, with oversight and compliance supported locally.

The information to be reported includes the account holder 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:

1. Register with the US IRS
2. Obtain a Global Intermediary Identification Number
3. Comply with ongoing FATCA due diligence and reporting requirements

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

For more information, please advise the US IRS FATCA page

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

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

The Corporate Income Tax Agency as delegated competent authority may conduct compliance activities to support the IRS, where necessary.

LEGAL FRAMEWORK

To give effect to the FATCA IGA, Bermuda executed the FATCA Model 2 Intergovernmental Agreement implemented enabling legislation under the:

RESOURCES

For more information, please advise the US IRS FATCA page

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