An online platform has been launched allowing companies to register and submit information required under the controversial act.
The controller of taxes, acting as Jersey’s competent authority, requires information about US clients to be submitted by 30 June each year before it is forwarded to the US Internal Revenue Service (IRS).
A test platform had previously been available to local financial institutions since the beginning of 2015 to allow them to test their file formats and familiarise themselves with the FATCA return process.
Passed in 2010 by Barack Obama, FATCA requires foreign financial institutions (FFI) to identify and report the financial details of their American clients, whose tax duties still apply when they move either themselves or their money from the US.
In the event that an FFI fails to comply, a 30% tax will be imposed by US authorities on withholdable payments.
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.
A GIIN is a unique identifier that FIs will have to supply to other financial institutions with which they maintain accounts or act as payees.
Jersey’s minister for treasury and resources, Alan Maclean, said: “The launch of the online reporting platform means 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% withholding tax.
“It further demonstrates that Jersey is strongly committed to supporting international initiatives designed to improve tax transparency.”
