On 18 September 2015, the Parliament of Georgia ratified the agreement on Foreign Account Tax Compliance Act (FATCA) between Georgia and the United States. The agreement – a Model 1 intergovernmental agreement – was signed on 10 July 2015.
The purpose of the agreement is to obtain information about US taxpayers’ accounts opened with financial institutions in Georgia. The agreement implies that financial institutions in Georgia will report the information required under FATCA about US accounts to the Georgian Government, which will in turn report the information to the US Internal Revenue Service (IRS).
The FATCA between Georgia and the US is aimed at, in particular, the coordination of respective obligations of the Georgian Revenue Service (GRS) of the Ministry of Finance of Georgia in terms of liaison with the financial institutions of the country and annual exchange of information regarding reportable accounts with the IRS on an automatic basis.
The USA also undertakes to provide the same information to the Georgian Government with respect to the Georgian individuals and legal entities which have accounts opened in the US.
With the signing and ratification of the FATCA, Georgia joined the list of over sixty countries which provide financial information to the US for the prevention of tax avoidance by US citizens.
Anna Pushkaryova, Country Director, Eurofast Georgia
T. +995 595 100 517
+995 595 100 517