FATCA regime with a 91.6 percent participation rate

Luanda – 44 of the 48 financial institutions (FIs) submitted financial information to the General Tax Administration under the Foreign Account Tax Compliance Act (FATCA), representing a participation rate of 91.6%.

This information refers to 2017 as of June 30 of the current year, according to the head of the Department of International Cooperation and Exchange of the General Tax Administration, Luis Gomes Sambo.

FATCA regime regulates the obligations of banks and financial institutions in Angola in identifying and reporting certain financial accounts of US taxable persons to AGT to enable the implementation of this agreement signed between Angola and the US on November 9, 2015 and approved on 29 August 2016.

Since the entry into force of this agreement in August 2016, the Angolan and United States Governments have been designated as the competent authorities representing both, for the purposes of compliance with the FATCA regime.

The General Tax Administration and the Internal Revenue Service (IRS) are the competent authorities that have maintained frequent contact in order to ensure the proper fulfillment of the obligations under the FATCA regime.

He added that the creation of the FATCA generated an international movement of cooperation with the principles that preside over it, to date there are more than 100 countries participating in the regime.

FACTA’s financial reporting regime determines that reporting financial institutions are required to submit, electronically, to AGT by June 30 of each year, the information containing the required reporting elements.

Also under the FACTA, the USA also reports to AGT balances and income obtained in financial accounts maintained at the moment in the Country, whose holders are persons resident in Angola.

This regime is allowing the inspection by the AGT of those Angolan taxpayers who do not declare certain income obtained in the United States of America, within the framework of FACTA compliance.

The automatic exchange of financial information between countries is a measure that will put an end the banking secrecy and aims to combat tax evasion.

Source: Angola Press News Agency