FATCA Implementation In Switzerland – A General Overview

1. Background

On 18 March 2010, the U.S. Hiring Incentives to Restore Employment Act of 2010 (known as the Hire Act) amended the U.S. Internal Revenue Code of 1986, respectively its sections 1471 through 1474 which are commonly referred to as the Foreign Account Tax Compliance Act ("FATCA"). FATCA is implemented through the Final Regulations¹ issued by the U.S. Treasury Department and the Internal Revenue Service (the "IRS") on 17 January 2013 (the "Final Regulations").

FATCA targets non-compliant U.S. taxpayers with offshore accounts by requesting foreign (i.e., non U.S.) financial institutions ("FFIs") to report certain information to the IRS regarding their United States accounts ("U.S. Accounts")².