Thousands of American expats will have their bank account details shared with the US government as part of a crackdown on tax evasion.
The UAE’s Ministry of Finance has signed an agreement with the US that will make it mandatory for all banks here to provide account numbers, balances, names and addresses on their American clients through an annual report, reported state news agency WAM.
Unlike many expats, US citizens have to pay tax on their income at rates ranging from 10 to 40 per cent, regardless of where in the world they live, and the move is part of efforts to enforce the Foreign Account Tax Compliance Act (FATCA), passed by the US Congress in 2010.
US Ambassador Barbara Leaf said: “This agreement reflects the UAE’s commitment to the adoption of best practices as well as the growing strength and breadth of our bilateral relationship.”
The first report will be submitted by 30 September.