KUWAIT CITY, Oct 5, (KUNA): The Ministry of Finance has signed a contract with the audit taxation bureau, Baker Tilly, in collaboration with Faizur Company, for implementing the taxation information exchange system between Kuwait and the United States of America according to FATCA, the Foreign Account Tax Compliance Act.
The ministry said in a statement on Wednesday that the data swap system would enable financial establishments to send reports about individuals’ assets to the ministry by October, pending dispatch to the US by Nov 30.
The system will be launched by end of October to give ample time to the financial institutions to finalize uploading the necessary data. As for the future, the financial institutions will refer the required reports by June 30 each year, pending referral to the US by Sept 30.
The system had already been installed in Saudi Arabia, the UAE and Oman. FATCA, which went into effect on Feb 7, 2016, aims to ensure greater transparency and disclosures for the American taxation authorities. It is applicable on US citizens whose assets or investments exceed $50,000. For companies, the relevant fund starts at $250,000. The law had been enacted to combat tax evasion .