Agreement on implementation of FATCA regulations between Serbia and USA
Author: Attorney-at-Law Todorović A. Aleksandra, Law Firm „VUK Tax Attorneys“
Date: 27th January 2020
On 23rd December 2019, National Assembly of the Republic of Serbia adopted the Law that ratifies
Agreement between the Serbian Government and the USA Government, concluded on 10th April 2019
with the aim to improving compatibility of tax regulations on international level and implementation of
FATCA regulations (Foreign Account Tax Compliance Act), which have the purpose to combat against
tax evasion (hereinafter: the “Agreement”). These regulations define that foreign financial institutions or
other financial agents, participate by reporting in prevention of tax avoidance by American citizens or
residents that keep their funds in non-American institutions and on foreign accounts.
Serbia, as a partner jurisdiction under the Agreement, will submit once per year, for the previous year, to the competent US authorities the data for US citizens holding their financial resources in financial institutions in the Republic of Serbia. Information will be gathered and exchanged for the year 2014 onwards. Due date for reporting is end of September of current year for relevant information relating to the previous year. Competent Serbian institution authorised for data delivery is the Directorate for Prevention of Money Laundering, while authorised US institution for receiving of information is the US Secretary of Treasury, or another person appointed by the Secretary.
Information that are being collected, concerning financial accounts which are subject to reporting to USA, are as follows: name, address, Tax Identification Number of concerned USA person, account number, business name and registration number of the Serbian reporting financial institution, gross amount of interest, dividends or any other generated income, total gross income from sales or purchase of property, that are paid or approved through the given account in concerned calendar year.
Persons that can be regarded as owners of accounts with the Serbian financial institutions, are US citizens, meaning US resident individuals, as well as partnerships or corporations organized in the USA or in accordance with the US regulations or any of its states.
Information delivered to authorised US bodies will be treated as confidential and will be allowed for disclosure only to US bodies competent for evaluation, collection or foreclosure, or criminal prosecution, or deciding upon appeals in relation to US federal taxes, or surveillance of mentioned functions, and which authorised bodies will use such information solely for indicated purposes.
The Agreement entered into force on 8th January 2020, in accordance with the Notice on the date of entry into force, published in the “Official Gazette of the RS – International Treaties”, no. 2/2020 of 5th February 2020.