Singapore’s policymakers are consulting the financial industry on proposed rules to assist firms such as banks to comply with the US FATCA Act legislation.

Singapore’s policymakers are consulting the financial industry on proposed rules to assist firms such as banks to comply with the US FATCA Act legislation.

The consultation deadline for responses is 17 October, according to a statement from the Monetary Authority of Singapore.

The US legislation, taking effect in a series of stages, requires all financial institutions outside of the US to regularly submit information on financial accounts held by US persons to the US Internal Revenue Service, or face a 30 per cent withholding tax on certain gross payments received from the US. Already, the law has prompted some of the world’s largest financial institutions, such as HSBC and Deutsche, to cease offering accounts to US expats.

Already, Singapore has “substantially concluded” a Model 1 Intergovernmental Agreement (IGA) with the US. The IGA will be signed in the fourth quarter of 2014, the statement said.

Public feedback is sought on the draft Income Tax (International Tax Compliance Agreements) (United States of America) Regulations 2014, which sets out the due diligence and reporting obligations of Singapore-based financial institutions in relation to the FATCA IGA; and a draft FATCA e-Tax Guide, which provides further explanation of those obligations.