International News

  • 7th June 2019US Expats Must File By June 17

    On June 5, 2019, the United States Internal Revenue Service reminded taxpayers living and working outside of the United States that they must file their 2018 federal income tax return by June 17, 2019.

    While the individual tax deadline for federal tax returns is set at April 15, taxpayers living and working outside of the US are granted an automatic two-month filing extension. This June 17 deadline applies to both US citizens and resident aliens abroad, including those with dual citizenship.

    An income tax filing requirement generally applies even if a taxpayer qualifies for tax benefits, such as the Foreign Earned Income Exclusion or the Foreign Tax Credit, which substantially reduces or eliminates US tax liability. However, these tax benefits are only available if an eligible taxpayer files a US income tax return.

    A taxpayer qualifies for the special June 17 filing deadline if both their tax home and abode are outside the United States and Puerto Rico. Those serving in the military outside the US and Puerto Rico on the regular due date of their tax return also qualify for the extension to June 17.

    However, the tax payment deadline remains set at April 15, and interest, currently at the rate of six percent per year, compounded daily, still applies to any tax payment received after the original deadline.

    Taxpayers abroad who can’t meet the June 17 deadline may apply for an automatic extension to October 15, 2019, although this does not extend the payment deadline.

    Any income received or deductible expenses paid in foreign currency must be reported on a US tax return in US dollars. Likewise, any tax payments must be made in US dollars.

  • 24th May 2019BVI Sets Deadlines For CbC, FATCA, CRS Filing Obligations
    The British Virgin Islands has set out the deadlines for certain submissions required from financial institutions under the OECD’s Common Reporting Standard (CRS), the US Foreign Account Tax Compliance, and the territory’s country-by-country reporting framework. The Government on May 15, 2019, noted that the BVI Financial Account Reporting System (BVIFARS) is still in the process of being updated. As a result, the reporting deadline for financial institutions that qualify as Trustee Documented Trusts (TDT) under the CRS that have reportable accounts for 2018 has been extended to June 28. Trustees that have already registered their documented trusts on the BVI reporting system have been advised to follow the instructions in the recently published Guidance Notes on the Common Reporting Standard and submit the filings via the TDT accounts. Trustees who have not yet registered their documented trusts on BVIFARS and are waiting for the system to be updated have been advised to submit their TDT filings via their Trustee’s account. The Common Reporting Standard requires the Trustee’s Documented Trusts to be identified. Therefore, their information must be inserted in the Reporting FI Section of the report when preparing the filing via the Trustee account. This provision for TDTs to report via their Trustee’s account is for the reporting year 2018. The BVI Government has also reminded reporting financial institutions it is now mandatory for those entities that do not maintain any reportable accounts to submit a nil report. The statement says, for constituent entities of multinational groups situated in the BVI, the period for enrolment for country-by-country reporting via email is being extended. The BVI Government said such entities should register via email as instructed in the recently published Guidance Notes for Country by Country Reporting until they are advised that the system is ready to accept their registration or enrolment applications and filings. These entities should consult the Guidance Notes to obtain the correct format to submit your email registration applications, it said. The statement sets out the following deadlines for US FATCA reporting, reporting under the CRS, or country-by-country reporting for the 2018 reporting year: The filing deadline for 2018 Reportable Accounts for Virgin Islands Financial Institutions, except reportable accounts for TDTs, is May 31. This filing deadline is applicable for both US FATCA and CRS filings. Nil reports …
  • 24th May 2019BVI Sets Deadlines For CbC, FATCA, CRS Filing Obligations
    The British Virgin Islands has set out the deadlines for certain submissions required from financial institutions under the OECD’s Common Reporting Standard (CRS), the US Foreign Account Tax Compliance, and the territory’s country-by-country reporting framework. The Government on May 15, 2019, noted that the BVI Financial Account Reporting System (BVIFARS) is still in the process of being updated. As a result, the reporting deadline for financial institutions that qualify as Trustee Documented Trusts (TDT) under the CRS that have reportable accounts for 2018 has been extended to June 28. Trustees that have already registered their documented trusts on the BVI reporting system have been advised to follow the instructions in the recently published Guidance Notes on the Common Reporting Standard and submit the filings via the TDT accounts. Trustees who have not yet registered their documented trusts on BVIFARS and are waiting for the system to be updated have been advised to submit their TDT filings via their Trustee’s account. The Common Reporting Standard requires the Trustee’s Documented Trusts to be identified. Therefore, their information must be inserted in the Reporting FI Section of the report when preparing the filing via the Trustee account. This provision for TDTs to report via their Trustee’s account is for the reporting year 2018. The BVI Government has also reminded reporting financial institutions it is now mandatory for those entities that do not maintain any reportable accounts to submit a nil report. The statement says, for constituent entities of multinational groups situated in the BVI, the period for enrolment for country-by-country reporting via email is being extended. The BVI Government said such entities should register via email as instructed in the recently published Guidance Notes for Country by Country Reporting until they are advised that the system is ready to accept their registration or enrolment applications and filings. These entities should consult the Guidance Notes to obtain the correct format to submit your email registration applications, it said. The statement sets out the following deadlines for US FATCA reporting, reporting under the CRS, or country-by-country reporting for the 2018 reporting year: The filing deadline for 2018 Reportable Accounts for Virgin Islands Financial Institutions, except reportable accounts for TDTs, is May 31. This filing deadline is applicable for both US FATCA and CRS filings. Nil reports …