Serbia and USA work on taxation agreement

Serbia and USA are continuing cooperation in order to sign Intergovernmental agreement with respect to implementation of the Law on aligned foreign currency account taxation (FATCA) for American citizens which have accounts in banks in Serbia, the Ministry of Finance announced.

The USA Ministry of Finance announced that Serbia, as jurisdiction with “essential agreement” with respect to the Intergovernmental agreement, will still be treated as if the agreement were effective.

The finalization deadline extension of the "essential agreement" with respect to the Intergovernmental agreement proves USA commitment in fight against tax evasion, since this way Serbia and USA have time essential for development of sustainable tax issues information exchange framework.

- Practically, this announcement from the USA Tax department, means that financial institutions in Serbia are not subject to withholding tax based on FATCA regulation as well as that the Government of Serbia does not have any commitments or mechanisms for providing information to USA authorities with respect to the accounts of American citizens with banks in Serbia – the Ministry of Finance explains.

As announced, Serbia and USA are expecting signing of the Intergovernmental agreement as soon as possible.