The US Foreign Account Tax Compliance Act - FATCA comprises US legislation enacted with the aim of fighting tax evasion. These regulations require foreign financial institutions and other financial intermediaries to participate, by filing data, in preventing tax avoidance by US nationals or residents who hold their funds in non-US financial institutions and in foreign accounts.
Based on the conclusion of the Serbian Government 05 No: 337-6683/2014 оf 28 June 2014, Serbia confirmed on 30 June 2014 its intention to enter into a FATCA intergovernmental agreement, and thus the Republic of Serbia was included on the list of jurisdictions that will apply FATCA regulations.
On 10 April 2019, an Agreement between the Government of the Republic of Serbia and the Government of the United States of America to Improve International Tax Compliance and to Implement FATCA was signed together with Annex I and Annex II to the Agreement.
Serbian Parliament adopted the Law Ratifying this intergovernmental agreement on 23 December 2019 (Official Gazette of the Republic of Serbia - International Agreements, No 16 оf 27 December 2019).
Article 1 (Definitions) of the Agreement provides that the competent authority for the implementation of the Agreement in the case of the Republic of Serbia is the Administration for the Prevention of Money Laundering (APML).
The APML and the US Internal Revenue Service (IRS) signed, as competent authorities, a Competent Authority Arrangement to further specify the implementation of the Agreement.
APML has a special FATCA Section responsible for implementation of the Agreement.