The governments of Slovenia and the US are set to sign a Model 1 bilateral inter-governmental agreement (IGA) to implement the Foreign Account Tax Compliance Act (FATCA), which will be effective from 1 July 2014.
The act, which was enacted in 2010 by the US Congress, is aimed at obtaining financial information of US entities related to account ownership, balances and amounts moving in and out of the accounts that are held abroad at foreign financial institutions (FFIs).
Non-disclosure of information by an FFI will result in a requirement to hold back 30% tax on payments of US-sourced income, reported tax-news.com.
The deal will make mandatory for Slovenian FFIs to provide their accounts data to the Slovenian tax authorities that will be exchanged with the US Internal Revenue Service. The automatic exchange of information will be vice versa.
The Slovenian Government will further discuss on the deal and sign before the process of its ratification by the National Assembly starts.