The Department of Finance of the Philippines represented by Finance Secretary Cesar V. Purisima and U. S. Ambassador to the Philippines Philip S. Goldberg signed a reciprocal intergovernmental agreement (IGA) to implement provisions of the Foreign Account Tax Compliance Act (FATCA) to promote transparency in financial accounts between the two nations for tax purposes.
According to Secretary Purisima, the agreement also eases the compliance burden of Philippine financial institutions, who risked facing a 30 percent withholding tax on certain U. S-sourced income if they failed to comply with FATCA related reporting requirements.
The automatic reporting of financial accounts is premised on the appropriate safeguard measures to ensure confidentiality of information that will be used solely for tax purposes, and the necessary infrastructure to effectively,accurate, and secure.
Please refer http://www.bir.gov.ph/images/bir_files/internal_communications_1/FATCA%20press%20release_10Jully2015.pdf of the full text of the Press Release of the Department of Finance in the Philippines.
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