FATCA Services

The Foreign Account Tax Compliance Act

What is FATCA?

FATCA is a US law aimed at reducing tax evasion by US citizens and residents through the use of offshore assets and accounts.

Don’t get caught with a 30% withholding tax penalty…

FATCA requires reporting on two items:

  • U.S. taxpayers must report on certain foreign financial accounts and offshore assets
  • Foreign Financial Institutions (FFIs) must report on financial accounts held by U.S. taxpayer or foreign entities in which U.S. taxpayers hold a substantial ownership interest.

If FFIs do not comply with FATCA they will be subject to a 30% withholding tax penalty on certain U.S. sources of income.

With extensive understanding of both US tax requirements and local regulations elsewhere in the world, Apex is perfectly placed to assist with FATCA compliance.

Services include:

  • Classifying your corporate and account structures to determine FATCA status
  • Registering your FFI with the IRS and obtaining your Global Intermediary Identification Number (GIIN)
  • Performing detailed due diligence reviews to determine “US accounts”
  • Contacting existing investors where there is insufficient data to determine US status
  • Reporting on all accounts deemed to be held by a US person or entity, as well as those accounts whose status cannot be determined

What is the definition of Foreign Financial Institution?

The following entities are defined as Foreign Financial Institutions; Banks, Investment Funds, Investment Managers, Brokers, Custodians and Insurance Companies among others.