MOSCOW, July 17 (Itar-Tass) - Russia does not intend to change its plans on signing an agreement with the United States to join FATCA (Foreign Account Tax Compliance Act), Finance Minister Anton Siluanov told journalists on the sidelines of a conference organized by Vnesheconombank.
“The term is not principled. We’re planning to complete the talks till the end of the year,” Siluanov said.
According to earlier reports, American legislators postponed the start of FATCA withholding until January 1, 2014.
FATCA is the legislation written in order to specifically address the avoidance of tax by US persons through foreign financial institutions. The purpose of FATCA is, therefore, to ensure that the IRS can identify and collect the appropriate tax from US persons holding financial assets outside the US. FATCA legislation potentially applies to any company or entity with US clients or assets that could generate U.S. source income.
The fact that Russia is holding talks with the United States to join FATCA was announced by the finance minister in May. He stressed the need to intensify the exchange of information in this aspect. “This should be done long ago,” Siluanov explained.