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Jersey’s financial institutions are now able to register in Jersey in preparation for US FATCA, which commences this year.
The Foreign Account Tax Compliance Act (FATCA) requires financial institutions outside the USA to report information on financial accounts held by their US customers to the Internal Revenue Service (IRS).
A test platform has been available to local financial institutions since the beginning of 2015 to test their file formats and familiarise themselves with the FATCA return process. Now financial institutions can register on the live system and submit information required under the FATCA rules. The Comptroller of Taxes, acting as Jersey’s Competent Authority, requires the information to be submitted by 30 June each year. The information is then forwarded to the IRS.
The Minister for Treasury and Resources, Senator Alan Maclean, said: “The launch of the online reporting platform means that our financial institutions will be in the best possible position to ensure that they meet the 30 June reporting deadline for FATCA and avoid the 30% US withholding tax. It further demonstrates that Jersey is strongly committed to supporting international initiatives designed to improve tax transparency.”
Financial institutions in Jersey should have already registered with the IRS in order to obtain a Global Intermediary Identification Number (GIIN). When registering in Jersey they must enter the GIIN and other information, including a designated point of contact.
In order to assist industry, two sets of guidance notes have been prepared, both currently in draft format. The first are general guidance notes, and have been drawn up in conjunction with Guernsey and the Isle of Man. They are available to download here.
There are also Jersey-specific IT guidance notes to help users to prepare for the exchange of information with the Comptroller of Taxes. These notes include details about the new online portal and how to register, and the required file format for data exchange. The IT guidance notes are also available here.
Although the system is now live, the test site will remain open for any financial institution wishing to trial their IT systems ahead of live registration.
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