FATCA Compliance Solutions
Foreign Accounts Tax Compliance Act (FATCA) is a U.S law that is aimed at combating tax evasion by US tax payers. It requires non-U.S financial institutions (Foreign Financial Institutions or FFIs) to identify US persons and report foreign assets held in their account to the US tax authority — the Internal Revenue Service (IRS).
Foreign Financial Institutions are also supposed to report foreign entities in which U.S. taxpayers hold a substantial ownership interest. Failure to comply attracts withholding penalty of 30% on withholdable payments.
FFIs include, but are not limited to deposit taking institutions like banks, investment entities like fund managers and stock brokers. Also classified as FFIs are certain insurance companies and custodial institutions.
FATCA legislations requires FFIs to;
- Perform due diligence to identify U.S persons using specified indicia
- Report financial information in the financial accounts held by U.S. taxpayers
- Withhold tax of 30% on certain payments to FFIS that fail to comply with FATCA obligations
- Periodically certify to the IRS that they have complied with the terms of the FFI agreement
Among other responsibilities, FATCA Responsible Officers are supposed to develop FATCA policies and procedures to ensure compliance with FATCA obligations.
As a trusted partner, we help FFIs to navigate FATCA compliance challenges of due diligence, reporting and withholding.
Our FATCA supporting services include;
- FATCA program compliance gap analysis and implementation
- U.S persons account due diligence, classification and remediation
- FATCA withholding and reporting to the IRS
- Drafting FATCA Policies and Procedures
- FATCA hands-on training
Our hands on and practical training provides complete guidance on the compliance and implementation aspects of FATCA. Practical case studies are used.
We partner with global and reputable regulation technology companies that provide FATCA electronic reporting solutions. These institutions also help with electronic data search to identify US indicia.
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