Hi,
I have found that Cyprus has signed Fatca agreement with the US.
Here is the agreement:
https://www.treasury.gov/resource-c...ocuments/FATCA-Agreement-Cyprus-12-2-2014.pdf
It looks like if a US company (defined as US person) opens a new bank account in Cyprus it is automatically reported to the US tax authority. The agreement says that only credit card account should not be reported. Is it is "prepaid credit card account"?
If yes, that would mean that any Delaware companies with a Cyprus bank account would be reported to the USA.
What do you think?
I can read...
V. New Entity Accounts. The following rules and procedures apply for purposes of identifying U.S. Reportable Accounts and accounts held by Nonparticipating Financial Institutions among Financial Accounts held by Entities and opened on or after July 1, 2014 (“New Entity Accounts”).
A. Entity Accounts Not Required to Be Reviewed, Identified or Reported. Unless the Reporting Cyprus Financial Institution elects otherwise, either with respect to all New Entity Accounts or, separately, with respect to any clearly identified group of such accounts, where the implementing rules in Cyprus provide for such election, a credit card account or a revolving credit facility treated as a New Entity Account is not required to be reviewed, identified, or reported, provided that the Reporting Cyprus Financial Institution maintaining such account implements policies and procedures to prevent an account balance owed to the Account Holder that exceeds $50,000.
B. Other New Entity Accounts. With respect to New Entity Accounts not described in paragraph A of this section, the Reporting Cyprus Financial Institution must determine whether the Account Holder is: (i) a Specified U.S. Person; (ii) a Cyprus Financial Institution or other Partner Jurisdiction Financial Institution; (iii) a participating FFI, a deemed-compliant FFI, or an exempt beneficial owner, as those terms are defined in relevant U.S. Treasury Regulations; or (iv) an Active NFFE or Passive NFFE.
I have found that Cyprus has signed Fatca agreement with the US.
Here is the agreement:
https://www.treasury.gov/resource-c...ocuments/FATCA-Agreement-Cyprus-12-2-2014.pdf
It looks like if a US company (defined as US person) opens a new bank account in Cyprus it is automatically reported to the US tax authority. The agreement says that only credit card account should not be reported. Is it is "prepaid credit card account"?
If yes, that would mean that any Delaware companies with a Cyprus bank account would be reported to the USA.
What do you think?
I can read...
V. New Entity Accounts. The following rules and procedures apply for purposes of identifying U.S. Reportable Accounts and accounts held by Nonparticipating Financial Institutions among Financial Accounts held by Entities and opened on or after July 1, 2014 (“New Entity Accounts”).
A. Entity Accounts Not Required to Be Reviewed, Identified or Reported. Unless the Reporting Cyprus Financial Institution elects otherwise, either with respect to all New Entity Accounts or, separately, with respect to any clearly identified group of such accounts, where the implementing rules in Cyprus provide for such election, a credit card account or a revolving credit facility treated as a New Entity Account is not required to be reviewed, identified, or reported, provided that the Reporting Cyprus Financial Institution maintaining such account implements policies and procedures to prevent an account balance owed to the Account Holder that exceeds $50,000.
B. Other New Entity Accounts. With respect to New Entity Accounts not described in paragraph A of this section, the Reporting Cyprus Financial Institution must determine whether the Account Holder is: (i) a Specified U.S. Person; (ii) a Cyprus Financial Institution or other Partner Jurisdiction Financial Institution; (iii) a participating FFI, a deemed-compliant FFI, or an exempt beneficial owner, as those terms are defined in relevant U.S. Treasury Regulations; or (iv) an Active NFFE or Passive NFFE.
