The law was passed for the implementation of the American Legal system FACTA

by:MICHAEL KYPRIANOU & CO. LLC

On 3 February 2017 the official Government Gazette published the law: “Agreement between the Government of the Republic of Cyprus and the Government of the United States of America (USA) for the improvement in international tax compliance of the FACTA (Foreign Account Tax Compliance Act) of 2017.”

The Agreement was signed between the two member states on 2 December 2014 and its aim is to improve international tax compliance through mutual cooperation in fiscal issues on the basis of information exchange.

The objective of this Act is the application of the American legislation, the Foreign Account Tax Compliance Act (FACTA), where the competent authorities of the Republic of Cyprus shall provide the competent authorities of the USA with financial information regarding banking accounts of Americans, as defined in the Agreement of 2 December 2014.