The Government of the United States of America and the Government of the Republic of Cyprus have concluded an agreement aimed at improving tax compliance through mutual assistance in tax matters based on an effective infrastructure for the exchange of information.
On April 20th, 2016, the Cyprus Ministry of Finance released the official text of the competent authority arrangement (CAA) that the United States and Cyprus have signed in accordance with the US-Cyprus intergovernmental agreement (IGA) for implementation of the Foreign Account Tax Compliance Act (FATCA).
Under the US-Cyprus intergovernmental agreement (IGA) that has been concluded, the competent authorities of Cyprus and the United States have entered into a mutual agreement procedure provided by the convention. The agreement has been concluded in order to establish that the procedures related to automatic exchange of information regarding reportable accounts and that annual obligations for reporting will be fulfilled.
The information to be obtained and exchanged by the two jurisdictions includes the following:
Regarding U.S. Reportable Accounts by reporting Cypriot financial Institutions:
• The name, address, and U.S. TIN of each specified U.S. person that is an account holder.
• The account number.
• The name and registration number of institution.
• The balance in the account reported at the end of the calendar year.
for custodial accounts – the total gross amount of interest must be reported and total gross proceeds from the sale or redemption of property paid or credited to the account during the calendar year.
• For depository accounts – the total gross amount of interest paid or credited to the account during the calendar year.
Regarding Cyprus reportable account of each reporting U.S. financial institution:
• The name, address, and Cyprus TIC of any person that is a resident of Cyprus and is an account holder of the account.
• The account number.
• The name and registration number of institution.
• The gross amount of interest paid on a depository account.
• The gross amount of U.S. source dividends paid.
• The gross amount of other U.S. source income paid or credited to the account.
All information exchanged by the two countries shall be subject to the confidentiality and other protections provided for in the Convention, including the provisions limiting the use of the information exchanged.
Andri Christodoulou
E. andri.christodoulou@eurofast.eu
T. +357.22.699.224