In March 2010, the Foreign Account Tax Compliance Act (FATCA) was enacted in the US for the purpose of preventing the non-compliance of US persons with US taxation laws through the participation and co-operation of foreign governments and financial institutions.
On 30 June 2014, Malaysia reached an agreement in substance with the US to implement the FATCA, based on the Model 1 intergovernmental agreement (IGA). However, at the time of publication, the Malaysian government had yet to announce a date for the finalization of the IGA.
Under the framework of the Model 1 IGA, Malaysian-based financial institutions (MYFIs) are to report the required account information on US persons to the Inland Revenue Board Malaysia (IRBM), which shares the information with the US Internal Revenue Service (IRS). The Malaysian government recently announced that the deadline for the submission of reportable information for the years 2014 and 2015 by MYFIs to the IRBM was 30 June 2016.
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