Project name

Foreign Account Tax Compliance Act (FATCA) Tax LawWe designed this template so that each member of the project team has a set of slides with its own theme. Members, heres how you add a new slide to just your set:

Mark where you want to add the slide: Select an existing one in the Thumbnails pane, click the New Slide button, then choose a layout. The new slide gets the same theme as the other slides in your set.

Careful! Dont annoy your fellow presenters by accidentally changing their themes. That can happen if you choose a different theme from the Design tab, which changes all of the slides in the presentation to that look. 1Agenda / TopicsMeaning of FATCAKey objectives and featuresForeign Financial Institutions and their responsibilitiesIntergovernmental agreementsImpact of FATCA on Azerbaijan2Why FATCA ?The effect of 2008 financial crisisAnticipated budget loss of $100 bln . Foreign Account Tax Compliance Act3FATCA Stands for Foreign Account Tax Compliance Act U.S. Federal law that requires U.S. citizens to report their financial accounts held outside the U.S. It further requires the FFI (Foreign Financial Institutions) to report to the IRS (Internal Revenue Services) about their U.S. clientsWas signed into law on March 18, 2010 and is effective from January 1, 2013

4Key objectives/ features of FATCA5Foreign Financial InstitutionsAny financial institution that is a foreign entityA financial institution is any entityAccept deposits in the ordinary course of banking or similar businessHolds, as a substantial part of its business, financial assets for the accounts of othersIs engaged primarily in investing, reinvesting or trading of securities, commodities, insurance or any interest in such securityIs an insurance company which issues contract with an investment companyFFI responsibilitiesUnder the FFI agreement, FFIs must:

Report annually on its account holders who are U.S. citizens or foreign entities with substantial U.S. ownershipWithhold and pay to the IRS 30% of any payments of U.S. source income

Reporting methods No intergovernmental agreement : FFIs IRS

Intergovernmental agreement : FFIs Intermediate organization U.S. authoritiesIntergovernmental agreementsUnder the model IGA, FFIs in partner jurisdictions will report information on U.S. account holders to their National Tax Authorities, which in turn will provide this information into the U.S. under automatic exchange of informationIGAIGA 1IGA 2

Impact of FATCA on AzerbaijanAzerbaijan signed Intergovernmental Partnership Agreement with U.S. in 2014, 22nd of AprilAs a result: 12Thank you!Presenters:Ildirim JafarliKamran MehdiyevRashad AbdurahmanliSarkhan FezievYasin Aliyev Zamig Nazarov

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