With the Foreign Account Tax Compliance Act (FATCA), which entered into force on 18 March 2010, the USA aims to ensure that all foreign accounts held by individuals subject to taxation in the USA are taxed. FATCA requires reports from foreign financial institutions (FFI) regarding their client relationships with US persons.
Subsequently, the Agreement between Switzerland and the USA for Cooperation to Facilitate the Implementation of FATCA (FATCA agreement) entered into force on 2 June 2014. This makes it easier for Swiss financial institutions to implement the new FATCA rules for US persons. The global implementation of FATCA begins on 1 July 2014.
Based on the US FATCA model, the UK concluded an agreement with British crown colonies and the overseas territories of the UK that provides for the automatic exchange of information of the offshore accounts of UK persons and a special reporting procedure for "UK Resident Non-Domiciled Individuals (RND)". The information and reporting obligations apply for existing accounts as at 30 June 2014. With the introduction of the Common Reporting Standard (CRS) in the British crown colonies and the overseas territories jurisdiction in 2016 the UK FATCA is being progressively replaced by the CRS.
In order to meeting the regulatory requirements of FATCA, our specialists offer comprehensive advisory services – from the qualification of legal entities under FATCA to the annual compliance obligation of those liable under FATCA.
Our specialists can support you in the following FATCA duties:
- Qualification of legal entities under FATCA
- Completion of US forms (W-8BEN-E, W-8IMY, W-8BEN etc.) or bank forms for those banks with which the legal entity maintains a banking relationship
- Introduction of FATCA compliance systems in order to meeting the annual FATCA compliance requirements
- Identification of individuals and transactions subject to reporting
- Timely reporting to the relevant authorities in the USA or the corresponding authority in a contracting state of the USA
- Communication with the authorities and banks
If you have questions, contact our specialists.