The Foreign Account Tax Compliance Act (FATCA) was enacted by the US to target non-compliance with US tax laws by US persons using non-US accounts. FATCA requires Financial Institutions (FI) outside the US to report on the assets held by their US account holders or be subject to withholding tax on certain payments. Singapore has entered into an Intergovernmental Agreement (IGA) with the US to facilitate the FATCA obligations of FIs in Singapore, and has been reporting financial account information to the US since 2015.
If you are a Reporting Singapore Financial Institution (SGFI), you will have to register for FATCA with IRAS. You are required to conduct due diligence on all US Financial Accounts you maintain and report the relevant account information in a timely and accurate manner to IRAS in an annual return.
If you are an individual holding an account with a Reporting SGFI, you may be affected by FATCA in several ways. You may refer to the Basic information for account holders of Financial Institutions for more information.
|19 July 2022|
IRAS FATCA File and Record Level Validations (PDF, 241KB) document updated: Added error code 1036
|25 April 2022|
FATCA Return Filing For Reporting Year 2021
All Reporting SGFIs must submit their FATCA return(s) to IRAS, setting out the required information in relation to every US Reportable Account that was maintained in calendar year 2021, by 31 May 2022.
Please submit your FATCA return early so that you have time to resolve any unexpected issues during the submission process. Enforcement actions will be taken against Reporting SGFIs that do not submit their FATCA returns on time.
Please refer to the FATCA Filing webpage for more information.
|23 February 2022||IRAS FATCA FAQs (PDF, 484KB) document updated: FAQ B.7 updated|
|23 February 2022||Paragraph 7.3 of the IRAS Supplementary XML User Guide for Preparing the FATCA Reporting Data File ("Supplementary Guide") (PDF, 266KB) updated|
|1 Dec 2021|
Increased Penalties for FATCA Filing Offences
With effect from 16 November 2021, the penalties for FATCA non-filing offences have been increased to $5,000 upon conviction, and a further fine of $100 per day for a continuing offence.
More than 90% of Reporting SGFIs have filed their annual FATCA returns on time. We strongly encourage Reporting SGFIs to put in place the necessary controls to ensure their returns are filed on time. Please refer to the FATCA Compliance section for more information.
|12 May 2021|
Simplified FATCA Filing Requirements for Qualifying Personal Investment Companies (PICs)
A Qualifying PIC that is liable to fulfil FATCA reporting obligations may qualify for simplified FATCA registration and reporting requirements and file its FATCA return annually using the simplified AEOI registration and reporting form.
Please refer to FATCA Filing Requirements section for more information.
You may refer to past updates at FATCA Update History.
FATCA was enacted by the US in March 2010 to target non-compliance with US tax laws by US persons using accounts outside the US. FATCA requires all FIs outside the US to report, on a regular basis, information about Financial Accounts held by US persons to the US IRS. FIs that fail to comply will face a 30% FATCA-related withholding tax on certain payments made from the US to them.
Singapore entered into a Model 1 IGA with the US to facilitate the discharge of SGFIs’ obligations arising under FATCA. Under the Agreement, instead of having to report financial account information of US persons directly with the US, reporting SGFIs will benefit from simplified compliance procedures and will instead report such account information to IRAS. IRAS will subsequently provide the reported information to the US Internal Revenue Service (“US IRS”).
In Singapore, the FATCA Regulations in the Income Tax Act requires and empowers all reporting SGFIs to put in place necessary processes and systems to collect such financial account information from their US account holders to IRAS.
FATCA Domestic Legislation
The domestic legislative provisions to implement the FATCA are set out at:
- Part XXB of the Income Tax Act (Cap. 134) – International Agreements to Improve Tax Compliance. This contains the enabling provisions to implement the FATCA in Singapore; and
- Income Tax (International Tax Compliance Agreements)(United States of America) Regulations 2015 ("FATCA Regulations 2015"). This incorporates the requirements of the 2014 FATCA Model 1 IGA (PDF, 495KB), signed by Singapore and the US, into Singapore’s domestic legislative framework. These regulations entered into force on 18 March 2015 are relevant for reporting years before 2021.
- Income Tax (International Tax Compliance Agreements)(United States of America) Regulations 2020 ("FATCA Regulations (2020)"). This incorporates the requirements of the 2018 reciprocal FATCA Model 1 IGA (PDF, 430KB), signed by Singapore and the US, into Singapore’s domestic legislative framework. These regulations entered into force on 1 January 2021 and are relevant for reporting years 2021 and beyond.
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