Thomson Reuters Tax & Accounting News

Featuring content from Checkpoint

Back to Thomson Reuters Tax & Accounting News

Subscribe below to the Checkpoint Daily Newsstand Email Newsletter

Israel, U.S. sign tax information agreement

TEL AVIV (Reuters) – Israel and the United States have signed an agreement aimed at improving international tax law enforcement and implementing the U.S. Foreign Accounts Tax Compliance Act (FATCA), Israel’s Finance Ministry said on Wednesday.

The agreement regulates the transfer of information to the U.S. Internal Revenue Service (IRS) via the Israel Tax Authority, which will obtain the information from Israeli financial institutions.

Information that will be transferred will include details of financial accounts held in Israel by U.S. citizens and residents or a legal entity in which U.S. citizens have a material holding.

The agreement will also enable the IRS to report on Israeli residents’ accounts in the United States, the ministry said.

The first date for the transfer of information is Sept. 30, 2015.

Pension fund managers will not be obliged to report on pension savings accounts.

Tagged with →