UAE MoF introduced the UAE-FATCA Guidance Notes and Registration Form

The UAE and USA signed the Foreign Account Tax Compliance Act (FACTA) agreement in 2014. As part of the FACTA agreement, the UAE’s Ministry of Finance (MoF) has added the UAE FACTA Guidance Notes as well as Registration Form to its website so that entities can easily access the requirements.

The Guidance Notes provide a detailed summary of what is included in the FACTA and outline the terms, conditions and requirements UAE financial institutions are subject to comply with by law. Financial institutions that operate within the UAE financial services, insurance and banking sectors of the UAE are subject to comply with the FACTA. The Guidance Notes also provide information on the UAE’s legislation framework as well as any updates or amendments made on laws by the Treasury Department of the USA and information on how to submit financial reports in accordance to the FACTA regulations and standards.

All financial institutions that are called to comply with the FACTA agreement must register on the MoF’s portal via the Registration Form found within the Guidance Notes. The licensed authority of the financial institution provides the Registration Form. Some of the licenses authorities include the Dubai International Financial Centre, the UAE Central Bank, Insurance Authority and the Securities and Commodities Authority. 

Any financial institutions or entities which have not already registered or licensed by the aforementioned authorities may do so by using the MoF’s website on the allocated webpage for FACTA. All relevant financial institutions and entities must disclose information concerning the financial accounts of USA individuals or foreign companies whereby one or more shareholders are USA citizens and hold more than 10% of the company’s shares. All information must be submitted to the MoF by 30 July 2015.

After the registration process has been completed, the relevant financial institutions are required to submit a copy of their work permit, their audited 2014 financial reports as well as information concerning subsidiary companies, copies of USA citizens’ visas, passports and Emirates IDs.

The initiation of the UAE FACTA Guidance Notes and Registration Form is in accordance to the government’s assessment to choose the first implementation model of FACTA. The MoF has been assigned the point of contact for all relevant UAE financial institutions that comply with the IRS’s standards as well as terms and conditions. The purpose of the guidance terms is to inform the relevant financial institutions of the FACTA. The online Guidance Notes and Registration form was launched after the UAE MoF connected all relevant government and financial institutions to the private IRS electronic system.

The UAE MoF counsels all relevant financial institutions to inquire the opinion of experts, such as tax agencies, in order to get informed about the requirements and policies of the legislation.  The MoF will submit its first report to the IRS for the previous year by 30 September 2015.

The US Congress introduced the FACTA in 2010 to battle against tax evasion from US citizens who hold foreign accounts. Under the law, financial institutions are obligated to provide detailed financial reports of their US clients’ accounts.