Today, after negotiations lasting for 4 years, Ukraine and the United States have signed an agreement providing implementation of provisions of US law “Foreign Account Tax Compliance Act” (FATCA). Cooperation under the agreement will assist in combating tax evasion and avoiding double taxation.
The agreement was signed by the Minister of Finance Alexander Danyluk from the Ukrainian side and by US Ambassador in Ukraine Marie Jovanovich – from the American. As for now, about 60 countries, including EU countries have joined the agreement.
According to Ukraine’s Minister of Finance, the agreement will reduce opportunities for financial fraud and facilitate the exchange of information and experience between Ukraine and the USA.
Under FATCA law, banks should provide US Revenue Service (IRS) access to information on accouns of holders that are subjects to US taxing. First of all, it is referred to accounts that have balance more than 250 thousand USD for legal entities and 50 thousand USD for individuals.
US law “Foreign Account Tax Compliance Act” is valid from July 1, 2014.
Source: Ukrainian news