F.A.T.C.A: Lifting of the professional secrecy in favor of the US tax administration
The Foreign Account Tax Compliance Act adopted on March 18, 2010 by the US Congress and effective since July 1, 2014, obliges financial institutions around the world to lift the professional secrecy for the benefit of the US tax administration.
This law requires financial institution of foreign countries to exchange with the US tax administration all financial information relating to bank accounts and financial investments held by US persons.
This law targets US citizens, Us residents and US shareholders of non-US companies.
The refusal of foreign financial institutions to comply with FATCA obligations would expose them to a 30% withholding tax on the income of their financial assets detained in the United States.
The United States has signed more than 113 agreements worldwide in order to enable the automatic exchange of financial information on a reciprocal basis.
As for Morocco, the 2018 Finance Bill provides for new provisions relating to communication right and exchange of information for tax purposes with the signatories’ states of the law FATCA.
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