CBDT amends definition of ‘non-reporting financial institution’ for purpose of reporting under FATCA

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  • Last Updated on 12 October, 2022

FATCA; non-reporting financial institution

Notification no. 112/2022, dated 07-10-2022

The Central Board of Direct Taxes (CBDT) has amended the definition of ‘non-reporting financial institution’ as defined under Rule 114F. Section 285BA talks about reporting requirements by a “non-reporting financial institution” that is responsible for registering, and maintaining books of account or other documents containing a record of any reportable account.

The definition of ‘non-reporting financial institution’ has been amended to provide that

a) a financial institution with a local client base;

b) a local bank; and

c) a financial institution with only low-value accounts.

shall be termed as a non-reporting financial institution only in case of any U.S. reportable account.

Further, the Board has also amended the definition of ‘Treaty Qualified Retirement Fund’ to make it USA country-specific.

Click Here To Read The Full Notification

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