CYPRUS: FATCA UPDATE
The U.S. Department of Treasury has declared Cyprus within the jurisdictions that signed an Intergovernmental Agreement (“IGA”) with the U.S. Department of Treasury for enhancing International Tax Compliance with respect to FATCA (Foreign Account Tax Compliance Act) effective as of 22 April 2014. The IGA is based on the most recent version of the Model 1-A IGA and includes the FATCA deadlines consistent with Notice 2013-43 of the U.S. Department of Treasury.
A foreign financial institution (FFI) based in a jurisdiction with an IGA in effect, will have the right to register on the FATCA registration website as a registered compliant FFI (which would include all reporting Model 1 FFIs). FFIs based in a jurisdiction that signed a Model 1 IGA will need to register and obtain a Global Intermediary Identification Number prior to 22 December 2014, in order to ensure inclusion on the IRS FFI list on 1 January 2015.