FATCA Agreement Between Switzerland And United States Delayed By Six Months

Fatca Flag[1]Switzerland and the United States have amended the FATCA agreement in line with the new timetable for FATCA implementation by means of an exchange of notes. Swiss financial institutions now have to implement FATCA from 1 July 2014 rather than from 1 January 2014.

On 12 July 2013, the US Department of the Treasury announced that the FATCA implementation by foreign financial institutions would be postponed by six months. As the FATCA agreement signed between Switzerland and the United States on 14 February 2013 was based on the earlier timetable with commencement on 1 January 2014, it had to be adjusted to the new schedule.

This amendment lies within the authority of the Federal Council and assures Swiss financial institutions the same implementation deadlines as financial institutions in other countries. The agreement was amended by means of an exchange of notes. The amendment will enter into force at the same time as the FATCA agreement.

The agreement was approved and the implementing act adopted in the final vote of parliament on 27 September 2013. The changes necessitated by the postponement are taken into account in the federal decree and in the act. The FATCA agreement and the implementing act are subject to an optional referendum.

 In accordance with Circular 230 Disclosure

Jim Calvin, Deloitte & Touche LLP (Singapore). Jim is the Deloitte Touche Tohmatsu Limited (DTTL) Asia-Pacific Tax Leader for the Financial Services Industry Practice, and currently based in Singapore. Also is DTTL’s Asia-Pacific regional leader for FATCA. Before relocating and joining the Singapore firm of Deloitte & Touche LLP, he had been the Deloitte asset management tax leader for the U.S. member firm, and, until 2002, was the hedge fund practice leader.

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