GCC entities need to factor in new US tax regime | GulfNews.com

GCC entities need to factor in new US tax regime | GulfNews.com:

"The 2008 financial crisis changed many of the principles that had steered the global economy for years and imposed fiscal policies that could not even have been thought of earlier. The repercussions were many, not just for the economies of a few countries but the global economy as a whole, prompting lawmakers in the West to take on new systems to help get things back on track.
The US, one of the countries to have effected tough resuscitation measures, revised its tax structure to pull in higher collections and turn around the deteriorating financial situation. In an unprecedented move, the US decided to implement the Foreign Account Tax Compliance Act (FATCA) law with effect from January, with the stated aim of having all funds and assets of Americans abroad subjected to taxes and tight control.
The law targets American taxpayers with foreign accounts and assets to pay taxes to their home country even if they pay taxes in countries where they work and live. The law also obliges banks and foreign financial institutions in various countries to provide details about Americans’ funds and accounts, otherwise they will face penalties, as was the case with the Swiss Bank Uzbizas in 2009."

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