Tax
Israel To Hand Over Tax Information To US
The Israeli Finance Ministry has agreed with the US Treasury Department in principle the outlines of a deal to implement the Foreign Account Tax Compliance Act.
The Israeli Finance Ministry has agreed with the US Treasury
Department in principle the outlines of a deal to implement the
Foreign Account Tax Compliance Act.
Israel's Finance Ministry said in a statement that the US
Internal Revenue Service will now be able to access information
on bank accounts held by Americans in Israel under an agreement
reached between the two countries.
The agreement applies to US Green Card holders and residents, as
well as legal entities in which American citizens have
substantial holdings.
The deal has only been agreed in substance and is set to be
formalized at the end of 2014.
While the flow of information is currently one way, it was also
agreed that the IRS would transfer account details of Israelis in
the US at a later date.
"The agreement in essence gives Israel the status of a country
that has signed an agreement with the US,” said Frida Israeli,
the director of Israel's state revenue department.
A total of 28 countries have now signed tax treaties with the US
in connection with FACTA, including the UK, Canada, Ireland,
Germany, France, the Netherlands, Switzerland and Italy.
