Minister of Finance Mr. Georgiades, has signed the FATCA Intergovernmental Agreement between Cyprus and USA (Intergovernmental Model 1 Agreement Foreign Account Tax Compliance Act) with the US ambassador, on the 2nd December 2014.
On the 28th of August 2015, a decree was published in the official Gazzete, with which the intergovernmental agreement (IGA) for the purposes of the Foreign Account Tax Compliance Act (FATCA) will be implemented.
The ultimate aim of the FATCA is to combat tax evasion by US persons who hold financial assets outside the U.S. the IGA provides for the automatic exchange of information in relation to financial accounts held by the U.S persons in Cypriot financial institutions and the reciprocal.
The decree specifies that the information required to be submitted by today, to the Cyprus Tax Department by the relevant financial institutions, will be consolidated and communicated to the US treasury by 30th of September 2015.
Also, according to the decree, each financial institution within the scope of FACTA must retain for a period of six years all relevant documents used preparing the information submitted to the Cyprus Tax Department.