Singapore has concluded an information-sharing accord with the US that is aimed at checking offshore tax evasion, according to Reuters.
The agreement, which was agreed in principle in May this year, will enable financial institutions in Singapore to easily comply with US tax law.
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Set to take effect on 1 July 2014, the Foreign Account Tax Compliance Act of 2010 (FATCA) will require foreign banks, investment funds and insurers to hand over information to the U.S. Internal Revenue Service about accounts with more than $50,000 held by Americans.
The foreign companies could be charged with a 30% withholding tax on their US investment income. Non compliance with the act will lead to freezing of company accounts in US capital markets.
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