This is the 20th fatCA Model I bilateral agreement that has been published so far; the last 19 were signed between the United States and individually between the United Kingdom, Denmark, Mexico, Ireland, Norway, Spain, Germany, France, Costa Rica, the Cayman Islands, Guernsey, Jersey, the Isle of Man, Italy, Mauritius, the Netherlands, Malta, Hungary and Canada. The national legislation on the FATCA agreement was approved by the Finnish President on 20 February 2015. The financial sector began recognizing its customers in accordance with FATCA on July 1, 2014. The first FATCA reports (for 2014) were to be submitted to the Finnish tax authorities by 30 April 2015. FATCA is the US Foreign Account Tax Compliance Act for the fight against tax evasion in the United States. The Nordic countries have all agreed to transpose FATCA requirements into local law, including provisions that require financial institutions to identify U.S. reporting persons among their clients. Similar agreements have been concluded by a large number of countries around the world. FATCA has been or will be transposed into local law in all Nordic and Baltic countries. The tax laws between Finland and the United States are harsh. This is because there are several different tax agreements between the United States and Finland, including: are you resident in a country other than Finland? Banks are required to collect information on their clients` tax stays under various legal instruments and international agreements. The United States and Finland have signed an information exchange agreement under the Foreign Account Tax Compliance Act (FATCA). Under the agreement, financial institutions must identify U.S.
individuals` accounts and assets and disclose their amounts to local tax authorities. The information is provided to the US Internal Revenue Service (IRS). On 5 March 2014, Finland signed an Intergovernmental Agreement (IGA) on FATCA with the United States. On the basis of the agreement, Finland agreed to adopt legislation requiring Finnish financial institutions to apply specific due diligence obligations in order to identify their taxable clients in the United States and to report information about the income and assets of these clients to the Finnish tax authorities. The information to be reported includes. B interest, dividend and derivatives income, life insurance payments and gross selling prices of stocks and bonds.