On March 1, 2016 the Swiss State Secretariat for International Financial Matters (SIF) issued a press release announcing that the competent authorities of Switzerland and the United States signed an agreement with which an exception clause for accounts held by lawyers or notaries was included in the Swiss – U.S. FATCA Agreement. According to the press release the negotiated exception clause has the advantage that clients of Swiss lawyers or notaries no longer have to be identified, and thereby the professional confidentiality of lawyers or notaries can be maintained.

According to SIF, due to this exception clause, accounts maintained for specific purposes by Swiss lawyers or notaries for their clients (i.e. accounts in connection with specific activities protected by law under the professional confidentiality) will be excluded from the scope of application of the Foreign Account Tax Compliance Act (FATCA). As a result of this exception, the financial institution maintaining the account will not have to identify the clients of Swiss lawyers or notaries, provided the lawyers or notaries confirm in writing to the financial institution that the accounts come under the scope of application of the exception clause.

Click here to be forwarded to the agreement to update Annex II (to the U.S. – Swiss FATCA Agreement) to include additional products in a new subsection “C” under Section III as published on the website of the Swiss State Secretariat for International Financial Matters, which will open in a new window.

Copyright – internationaltaxplaza.info

Are you looking for a motivated new colleague? Then place your job ad on International Tax Plaza!

and

Stay informed: Subscribe to International Tax Plaza’s Newsletter! It’s completely FREE OF CHARGE!