Seven thousand Kuwaitis who also hold the US citizenship shall be subject to pay taxes according to the provisions commonly known as the Foreign Account Tax Compliance Act (FATCA), reports a local daily.
The Kuwaitis who hold the US citizenship are facing a legal problem if they do not correct their situation before September 2016, when the convention will be enforced as per the statement issued by the Ministry. The list contains the names of 7,000 Kuwaitis as per the last census conducted by the US government and then sent to the Kuwaiti authorities. Available information says 13 Kuwaitis have recently given up the US citizenship.
According to the agreement, which is expected to be signed next Wednesday with the US authorities, all financial institutions shall be committed to prepare the information required by the US Internal Revenue System (IRS) — the IRS is the US government agency responsible for tax collection and tax law enforcement. The number of persons bound by the FATCA law of US citizenship or green card holders in the Gulf region is believed to be 600,000 of whom 2,500 have amended their situations.