International Tax Newsletter - Summer 2011 - UNITED STATES: Key International Tax Developments
EisnerAmper LLP has in recent months issued Alerts describing several significant U.S. international tax developments, to which links are provided below:
FOREIGN BANK ACCOUNT REPORTS (FBARs)
U.S. Treasury Department Form 90-22.1 generally is required to be filed by any U.S. person who has a financial interest in or signatory authority over any foreign financial account, if the aggregate value of that person's accounts exceeds $10,000 at any time during the year. Reports for calendar year 2010 generally must be received by the Treasury Department no later than June 30, 2011. However, persons having signature authority over, but no financial interest in, a foreign financial account in 2009 or earlier calendar years will now have until November 1, 2011 to file FBARs with respect to those accounts. In addition, FINCEN has now extended the FBAR filing deadline to June 30, 2012 for employees or officers of SEC registered investment advisors who have signature authority over, but no financial interest in, foreign financial accounts of persons that are not registered investment companies. These exceptions are described in our Alert dated June 17, 2011.
OFFSHORE VOLUNTARY COMPLIANCE INITIATIVE
For U.S. taxpayers not fully disclosing their offshore financial accounts on required foreign bank account reports (FBARs) for part or all of the eight years 2003-2010, the U.S. Treasury Department has adopted a new Offshore Voluntary Disclosure Initiative (OVDI) limiting penalties on such late disclosures. This has been scheduled generally to close on August 31, 2011, by which date all documents must be submitted by the taxpayer. However, a taxpayer may now request an extension of the deadline to complete his or her submission if the taxpayer can demonstrate a good faith attempt to fully comply with submissions required to enter the OVDI on or before August 31, 2011. This new guidance contemplates a maximum extension of up to 90 days, or until November 30, 2011, as described in our Alert dated August 2, 2011.
FOREIGN ACCOUNT TAX COMPLIANCE ACT
The Foreign Account Tax Compliance Act (FATCA) provisions were included in the Hiring Incentives to Restore Employment (HIRE) Act, which was enacted on March 18, 2010. FATCA provides, among other matters, a complex new reporting regime for foreign financial institutions (FFIs) — including banks and investment funds, among others — intended to identify the financial accounts of U.S. persons held in such FFIs. Two important new sets of guidance under these provisions have been issued and are described in our Alert dated July 15, 2011.
International Tax Newsletter - Summer 2011
- CHILI: New Audit Process For Transfer Pricing
- CHINA: Corporate Income Taxes (CIT) Treatment On Asset Transfer Income Derived By Enterprises
- CZECH REPUBLIC: Corporate Tax Legislation
- GERMANY: Electronic Transmission Of Tax Accounting Introduced For 2012 Onward
- HUNGARY: Corporate Income Taxation
- INDIA: Finance Act 2011 — Amendments Relevant To International Taxation
- IRELAND: Finance Act 2011 Changes For Companies Investing In Ireland
- JAPAN: Recent Tax Treaty Reforms
- MEXICO: Recent Tax Treaty Reforms
- NETHERLANDS: Corporate Income Tax
- RUSSIA: New Zero Rating For Income From The Sale Of Shares In Russian Companies
- UNITED KINGDOM: Corporation Tax Rate
- UNITED STATES: Key International Tax Developments