Wealth Management and Financial Services Singapore Client Alert April 2015 FATCA Regulations enter into force and finalised e-Tax Guide for FATCA published; first reporting deadline extended to 31 July 2015 On 9 December 2014, Singapore entered into a Model 1 Intergovernmental Agreement ("IGA") with the US to facilitate compliance by Singapore-based financial institutions ("FIs") with the US Foreign Account Tax Compliance Act ("FATCA"). The IGA provides a framework under which reports of information on US account holders may be made to the US Internal Revenue Service ("US IRS") by Singapore-based FIs via the Inland Revenue Authority of Singapore ("IRAS"). In order to implement Singapore's obligations under the IGA, the Income Tax (International Tax Compliance Agreements) (United States of America) Regulations 2015 (the "Regulations") were enacted on 17 March 2015 and came into force on 18 March 2015. The Regulations set out the due diligence and reporting obligations of Singapore-based FIs for FATCA. On 18 March 2015, IRAS issued the e-Tax Guide on the Compliance Requirements of the Singapore-US Intergovernmental Agreement on Foreign Account Tax Compliance Act (the "e-Tax Guide") to provide Singapore-based FIs with guidance on their obligations. Draft versions of the Regulations and the e-Tax Guide were previously released in September 2014 for public consultation and the responses to the public consultation can be found on the MOF page. Our previous client alert on the consultation exercise can be accessed here. The Regulations and the e-Tax Guide are available on the IRAS website. Before the final versions of the Regulations and e-Tax Guide were available, many Singapore-based FIs had based their FATCA compliance policy on the draft versions. Singapore-based FIs should now review the Regulations and the e-Tax Guide and ensure that their FATCA compliance policy is in line with the final versions. Key upcoming deadlines that Singapore-based FIs should take note of: 30 June 2015: Deadline for the completion of due diligence review procedures for financial accounts maintained by reporting Singapore-based FIs and held by individuals which have a value exceeding USD 1,000,000 prior to 1 July 2014. If any reportable US accounts are found and reports need to be filed, such reports will need to be filed with IRAS by end of May of the following year, i.e., 31 May 2016. 31 July 2015: New deadline for all reporting Singapore-based FIs to submit relevant information from the calendar year 2014 to IRAS. IRAS has recently extended this filing deadline to 31 July 2015 from the original deadline of 31 For more information, please contact: Eugene Lim +65 6434 2633 firstname.lastname@example.org Dawn Quek +65 6434 2599 email@example.com Stephanie Magnus +65 6434 2672 firstname.lastname@example.org Enoch Wan +65 6434 2727 email@example.com Jaclyn Toh +65 6434 2286 firstname.lastname@example.org Baker & McKenzie.Wong & Leow 8 Marina Boulevard #05-01 Marina Bay Financial Centre Tower 1, Singapore 018981 www.bakermckenzie.com 2 Client Alert April 2015 May 2015. This extension is made in relation to calendar year 2014 only. For all subsequent years, reports must be made to IRAS by end of May of the following year, i.e., by 31 May 2016 for the calendar year 2015, and so forth. 30 June 2016: Deadline for the completion of due diligence review procedures for financial accounts maintained by reporting Singapore-based FIs that are held by: (i) individuals and have values between USD 50,000 to USD 1,000,000 prior to 1 July 2014; and (ii) entities and have values exceeding USD 250,000 prior to 1 July 2014. If any reportable US accounts are found and reports need to be filed, such reports will need to be filed with IRAS by end of May of the following year, i.e., 31 May 2017. Singapore-based FIs that maintain financial accounts opened on or after 1 July 2014 where the account balance exceeds USD 50,000 are required to obtain valid self-certification from their account holders. The e-Tax Guide sets out other specific review guidelines, procedures, and deadlines for reporting in relation to different types of accounts and account holders. If a reporting Singapore-based FI does not maintain any reportable US accounts, it is required to file a nil return with the IRAS by either: (i) completing a paper FATCA nil return, or (ii) preparing a FATCA reporting packet to be transmitted through the electronic system prescribed by IRAS.