Bahrain has signed an agreement to implement the US Foreign Account Taxpayer Compliance Act with the United States.
FATCA, enacted by the US Congress in 2010, is intended to ensure that the US obtains information on accounts held abroad at foreign financial institutions (FFIs) by US persons. Failure by an FFI to disclose information on their US clients will result in a requirement to withhold 30 percent tax on payments of US-sourced income.
The Intergovernmental Agreement will provide for a simplified framework for Bahraini financial institutions to comply with the US FATCA, through a centralized agency, and remove any legal restrictions on the collection and exchange of the relevant information.
IMC Group