Hong Kong financial institutions that had been scrambling to meet the 31 March 2015 deadline to file reports to the US Internal Revenue Service (IRS) under the US Foreign Account Tax Compliance Act (FATCA) now have a slight reprieve. The reporting deadline has been extended to 30 June 2015.
There are nearly 3,000 reporting Hong Kong financial institutions, which at the new deadline must ensure their FATCA reports are submitted on the IRS’ new International Data Exchange System (IDES) gateway. Hong Kong has a Model 2 intergovernmental agreement (IGA) with the US.
Hong Kong financial institutions and those in other Model 2 countries should not take the extended deadline as a reason to procrastinate with their FATCA reporting. The IRS IDES presents its own set of complexities for reporting financial institutions (RFIs) and their personnel, and reporting is a multi-step process that includes enrolment, obtaining a certificate, navigating the IDES gateway, and of course preparing and submitting the FATCA report in the required format.
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Peter Stafford, a Cayman Islands attorney-at-law, is a director and technical lead of the tax information services team of DMS Offshore Investment Services
DMS House, 20 Genesis Close
P.O. Box 314, Grand Cayman, KY1-1104
Tel: +1 345 949 2777