Just wondering if someone can explain what exactly FATCA is and how it affects offshore company owners if not all company owners.
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Do you know what it is about the new FATCA Policy all are implementing?
- Thread starter clemens
- Start date
What is FATCA?
FATCA stands for the Foreign Account Tax Compliance Act. It colloquially refers to provisions included in the Hiring Incentives to Restore Employment Act signed into law on March 18, 2010
and effective January 1, 2013 (although, as explained in more detail below, withholding does not start at the earliest until January 1, 2014)
It adds a new chapter to the Internal Revenue Code (Chapter 4) aimed at addressing perceived tax abuse by U.S. persons through the use of offshore accounts.
The new rules require fo reign financial institutions (FFI?
s) to provide the Internal Revenue Service ( IRS) with information on certain U.S. persons invested in accountsoutside of the U.S. and for certain non- U.S. entities to provide information about any
U.S. owners.
Read more here
FATCA stands for the Foreign Account Tax Compliance Act. It colloquially refers to provisions included in the Hiring Incentives to Restore Employment Act signed into law on March 18, 2010
and effective January 1, 2013 (although, as explained in more detail below, withholding does not start at the earliest until January 1, 2014)
It adds a new chapter to the Internal Revenue Code (Chapter 4) aimed at addressing perceived tax abuse by U.S. persons through the use of offshore accounts.
The new rules require fo reign financial institutions (FFI?
s) to provide the Internal Revenue Service ( IRS) with information on certain U.S. persons invested in accountsoutside of the U.S. and for certain non- U.S. entities to provide information about any
U.S. owners.
Read more here
BACKGROUND
There are a number of substantial changes being made by financial regulators, governments and banks to ensure the protection and long-term
safety of both the financial system and our customers? interests. One of these changes is the Foreign Account Tax Compliance Act (FATCA), which
has been introduced by the US government as part of the United States Internal Revenue Code of 1986 (together with regulations made under the
Code). The purpose of FATCA is to report financial assets owned by United States persons to the United States tax authorities.
How does FATCA affect Bank Public Company Ltd and you?
Bank Public Company Ltd has made a commitment to being fully FATCA compliant. This means we have to report affected customers?
income and profit details to the Cyprus Tax Authorities. In order to do so, we will need to obtain additional information from our customers to identify
US Persons (USPs) and Foreign Financial Institutions (FFIs). There may also be other customers who we have to identify for this purpose. Every
year Banks and other Financial Organisations will be required to report information on financial accounts held directly or indirectly by US Persons. In
order to identify the customers where reporting under FATCA may apply, we need to match our customer base against certain categories set out in
the FATCA legislation.
Does this apply to you?
Whilst most FATCA categories set out in the legislation are not reportable, some may be applicable to our customers. In order to make sure that we
are able to match our customers against the FATCA categories, we are asking our customers to provide confirmation of their FATCA status, review
the conditions that apply, and confirm that they are satisfied. Bank Public Company Ltd is not able to provide tax advice in respect of this
process or for FATCA classification purposes.
Who do we need to report under FATCA?
We are required to report certain information on accounts held by Specified US Persons. This includes accounts held by U.S. citizens and U.S.
residents, certain corporations or partnerships created or organised in the United States, as well as accounts held by certain passive entities (please
see the section on Passive Income and the section What is meant by a passive entity (Passive NFFE) under FATCA?) with shareholders who are
U.S. citizens or U.S. resident persons. We will also be required to report certain information on customers or financial counterparties who do not
provide us with documentation to establish a tax status under FATCA.
Hope it can be of help for some or two
There are a number of substantial changes being made by financial regulators, governments and banks to ensure the protection and long-term
safety of both the financial system and our customers? interests. One of these changes is the Foreign Account Tax Compliance Act (FATCA), which
has been introduced by the US government as part of the United States Internal Revenue Code of 1986 (together with regulations made under the
Code). The purpose of FATCA is to report financial assets owned by United States persons to the United States tax authorities.
How does FATCA affect Bank Public Company Ltd and you?
Bank Public Company Ltd has made a commitment to being fully FATCA compliant. This means we have to report affected customers?
income and profit details to the Cyprus Tax Authorities. In order to do so, we will need to obtain additional information from our customers to identify
US Persons (USPs) and Foreign Financial Institutions (FFIs). There may also be other customers who we have to identify for this purpose. Every
year Banks and other Financial Organisations will be required to report information on financial accounts held directly or indirectly by US Persons. In
order to identify the customers where reporting under FATCA may apply, we need to match our customer base against certain categories set out in
the FATCA legislation.
Does this apply to you?
Whilst most FATCA categories set out in the legislation are not reportable, some may be applicable to our customers. In order to make sure that we
are able to match our customers against the FATCA categories, we are asking our customers to provide confirmation of their FATCA status, review
the conditions that apply, and confirm that they are satisfied. Bank Public Company Ltd is not able to provide tax advice in respect of this
process or for FATCA classification purposes.
Who do we need to report under FATCA?
We are required to report certain information on accounts held by Specified US Persons. This includes accounts held by U.S. citizens and U.S.
residents, certain corporations or partnerships created or organised in the United States, as well as accounts held by certain passive entities (please
see the section on Passive Income and the section What is meant by a passive entity (Passive NFFE) under FATCA?) with shareholders who are
U.S. citizens or U.S. resident persons. We will also be required to report certain information on customers or financial counterparties who do not
provide us with documentation to establish a tax status under FATCA.
Hope it can be of help for some or two
Some some great information.. thank you I was not aware of TIEAS, FATCA and all before I came here.
Thank you so much for sharing, has been exactly what I was looking for to read, with insider informationBACKGROUND
There are a number of substantial changes being made by financial regulators, governments and banks to ensure the protection and long-term
safety of both the financial system and our customers? interests. One of these changes is the Foreign Account Tax Compliance Act (FATCA), which
has been introduced by the US government as part of the United States Internal Revenue Code of 1986 (together with regulations made under the
Code). The purpose of FATCA is to report financial assets owned by United States persons to the United States tax authorities.
How does FATCA affect Bank Public Company Ltd and you?
Bank Public Company Ltd has made a commitment to being fully FATCA compliant. This means we have to report affected customers?
income and profit details to the Cyprus Tax Authorities. In order to do so, we will need to obtain additional information from our customers to identify
US Persons (USPs) and Foreign Financial Institutions (FFIs). There may also be other customers who we have to identify for this purpose. Every
year Banks and other Financial Organisations will be required to report information on financial accounts held directly or indirectly by US Persons. In
order to identify the customers where reporting under FATCA may apply, we need to match our customer base against certain categories set out in
the FATCA legislation.
Does this apply to you?
Whilst most FATCA categories set out in the legislation are not reportable, some may be applicable to our customers. In order to make sure that we
are able to match our customers against the FATCA categories, we are asking our customers to provide confirmation of their FATCA status, review
the conditions that apply, and confirm that they are satisfied. Bank Public Company Ltd is not able to provide tax advice in respect of this
process or for FATCA classification purposes.
Who do we need to report under FATCA?
We are required to report certain information on accounts held by Specified US Persons. This includes accounts held by U.S. citizens and U.S.
residents, certain corporations or partnerships created or organised in the United States, as well as accounts held by certain passive entities (please
see the section on Passive Income and the section What is meant by a passive entity (Passive NFFE) under FATCA?) with shareholders who are
U.S. citizens or U.S. resident persons. We will also be required to report certain information on customers or financial counterparties who do not
provide us with documentation to establish a tax status under FATCA.
Hope it can be of help for some or two
Thank you for clarification truebunny, this is interesting reading and makes a sense in regards to FATCA regulations which seem to take effect now!!
Here we go, much more information from a true source http://www.amcham.ch/publications/downloads/2014/yb/fatca-vs-aei.pdf
Most for US however, look over your shoulder and watch such instruments coming soon for Europeans too
When you are doing business with any US citizen or corporation and you apply for banking in Cyprus they will ask you to complete a FATCA form too :bettyboop:
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