Foreign Account Tax Compliance Act (FATCA) – UPDATE
Due to the fact that Germany’s lower house (Bundestag) founded a “Grand Coalition” between the two leading parties (CDU/ CSU and SPD), they formed a coalition agreement, which states that they want to develop and adjust the currently existing modern and competitive tax law. The key aspect on this part of the agreement are the tax simplification and enforcement, containment of tax evasion and avoidance. The coalition also considered other additional tax issues.
In November 2013, the German upper house (Bundesrat) approved the draft of the Bundestag on the AIFM Taxation Adjustment Act (AIFM Steueranpassungsgesetz). This Act in particular introduces the statutory provisions to support the implementation of the FATCA Agreement as well as future similar bilateral agreements with other countries based on the exchange of tax information. The AIFM Taxation Adjustment Act was passed in December 2013 and entered into force on December 24th, 2013.
The reports in respect of the years 2013 and 2014 are required by the IRS by the end of September 2015.
und viele Grüße aus Charlotte
Reinhard von Hennigs