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FATCA Implementation Agreement between the United States and San Marino

This treaty outlines the implementation of the Foreign Account Tax Compliance Act (FATCA) and related tax matters between the United States and San Marino.

Article 3: Special Rules Regarding Related Entities and Branches

The following rules apply to San Marino Financial Institutions with related entities or branches:

  • Non-Compliance Exemption: If a San Marino Financial Institution has a related entity or branch that cannot comply with FATCA requirements due to local laws, it will not affect the participation status of the San Marino Financial Institution.
  • Reporting Requirements: The San Marino Financial Institution must treat each related entity or branch as a separate non-participating financial institution and have them identify themselves as such to withholding agents.
  • IRS Reporting: Each related entity or branch must report information about U.S. accounts to the IRS, subject to local laws.

Article 4: Verification and Enforcement

The following procedures outline verification and enforcement measures:

  • Minor Errors: The U.S. Competent Authority may make inquiries directly with Reporting San Marino Financial Institutions regarding minor errors in reporting.
  • Significant Non-Compliance: If significant non-compliance is found, the United States will treat the Reporting San Marino Financial Institution as a non-participating financial institution after a 12-month period.

Article 4: Coordination of Definitions

The following guidelines outline coordination of definitions:

  • U.S. Treasury Regulations: In implementing this agreement, San Marino may use definitions from U.S. Treasury Regulations instead of those in the agreement if it does not frustrate the purposes of the agreement.

Overall, this agreement outlines procedures for reporting and compliance with FATCA requirements by San Marino Financial Institutions and related entities or branches.