Federal Tax, FATCA Law & Tax Information
Maintain US FATCA Compliance to Avoid Trouble
The Foreign Account Tax Compliance Act, FATCA is not exactly a tax, but a framework to combat tax evasion related to US taxpayers. The regulations to FATCA compliance require tax authorities to obtain detailed bank account information for taxpayers. The act solely intends to increase transparency for the IRS to make sure that US taxpayers pay the appropriate taxes on wealth held in accounts outside the country. However, in case of any default, Federal Tax Singapore, FATCA law may impose a penalty on those who fail to comply.
The main objective of the act is to identify and prevent the ignorance of offshore tax by liable taxpayers. The provision of the act affects financial institutions, non-financial institutions, and individuals among others. Specifically, FATCA federal tax has included additional tax guidelines for both financial institutions (known as FFIs) based outside of the US as well as US persons with foreign financial assets.
Our team works with FFIs who have GIIN registration or FATCA Tax-related reporting requirements. Due to the need to utilize modern technology in extracting FFI client data, there’s a mandatory requirement to transform it into the right XML format and reporting it accordingly.
We offer FFIs FATCA Banks Singapore reporting solutions from US$2, 000 and assist with Federal Tax in Singapore.
We have worked with several US individuals who are now aware of their liabilities to the act of FATCA and file Form 8938 as part of their annual tax filing.
Non–Financial Institutions based overseas are sometimes known as NFFEs or non-financial foreign entities. We work with NFFEs that have been given W-9s and W-8-Ben-Es to complete by their banks. Our experienced tax specialist team would be happy to assist you with the analysis of the entity needed to complete these forms
As a regulated financial institution, Advanced American Tax complies with FATCA compliance in Singapore and Common Reporting Standard (CRS). Both the tax regulations required the Foreign Financial Institutions (FIIs) including FATCA banks Singapore to collect and report information about the financial accounts held by the US taxpayers or by foreign entities.
To overcome the challenges of FATCA compliance, you’re safe to trust the expertise of Advanced American Tax professionals in Singapore.
Should you have any questions, please don’t hesitate to ask. We aim to answer any questions you may have regarding FATCA compliance and the consequences of its non-compliance.
The underlying logic behind our American Taxation Services is to ensure that the right taxes are deducted from the US citizens who are international assets holders. The lack of compliance can cause a huge reclamation of the tax money. For this reason, it is obviously necessary to declare offshore assets.
Our aim is to ensure that the international institutions register themselves with the IRS and report the required information of US citizens and their holdings. Once such important information is delivered by the institution, a large part of the process is done.
Significant Features Of FATCA Law Every US Citizen Living Overseas Should Know
As mentioned, FATCA is specifically introduced to detect the non-US financial accounts of US citizen taxpayers and enforce the collections. In addition to this standard policy of FATCA federal tax, there are certain prominent features of FATCA which US taxpayers living overseas must know.
We are at the forefront of monitoring development in FATCA law to evaluate custom tax solutions for financial institutions to comply with FATCA effectively. In order to meet regulatory requirements of Foreign Act Tax Compliance Act tax law, our FATCA experts offer comprehensive FATCA reporting and advisory services- from FATCA classification, registration, onboarding, pre-existing account on due diligence, and reporting.
Our FATCA solution provides a fully integrated solution to help firms (foreign non-US financial institutions) address the challenges of FATCA tax and reduce the risk and improve profitability whilst safeguarding regulatory compliance. If you’re affected by the provision of complicated FATCA law in Singapore, our tax specialist can assist you to minimize your last-minute FATCA compliance burden.
Frequently Asked Questions About FATCA Compliance
The Foreign Account Tax Compliance Act (FATCA) is a US federal law that is purposely introduced to combat the tax evasion of US taxpayers. FATCA intended to promote cross-border tax compliance by implementing an international standard for the exchange of information by the FIIs (Foreign Financial Institutions) to obtain the detailed account information and tax status of US taxpayers.
Yes, FATCA declaration is mandatory to all those US taxpayers who hold foreign financial assets with an aggregate value of more than the reporting threshold (at least $50,000) to report detailed information about those assets as well as the tax status on Form 8938, which must be attached to the taxpayer’s annual income tax return.
FATCA came into the existence to reduce tax evasion and increase the transparency for the Internal Revenue Service (IRS) with respect to US persons that may be investing and earning income through non-US institutions. Whereas the primary aim of FATCA law in Singapore is to gain detailed information about US persons, it also imposes tax withholding where the applicable documentation and reporting requirements are not met.
U.S. citizens, or residents, and some qualified nonresident individuals who hold certain foreign financial accounts or other offshore assets (specified foreign financial assets) outside the US must report the detailed of those assets.
In general, FATCA withholdings break into two significant categories, namely foreign financial institutions (FFI) or a non-financial foreign entity (NFFE). In addition, as per the FATCA regulations in Singapore FFI need to withhold 30% on payment it makes to the recalcitrant account holder, as well as to the payment it makes to another FFI unless it meets certain requirements.
FATCA compliance in Singapore impacts both personal and business customers who hold an account, policy, or agreement with FATCA authorized banks.
The term US Person, United States person here, means:
- A citizen or the resident of the United States
- A domestic partnership
- A domestic corporation
- Any trust if:
– One or more US person has received the authority to control all substantial decisions of the trust, and
– A court within the US exercise supervisory power over the administration of the trust
If you are categorized under US persons, you may be required to provide essential information and documentation to the FATCA representatives with compliance to FATCA in Singapore. You can visit the official website of the IRS to determine if you need to submit any additional IRS forms or other documentation.
You need to provide details of the information and documentation that the FATCA authority may need in order for compliance with FATCA banks in Singapore purposes. However, documents may include US tax forms (including withholding certificates or W forms) or self-declaration of FATCA compliant status.
If in case, you do not provide the information/documents, you can’t be able to open new accounts or offer additional products or services to customers who choose not to comply with the FATCA requests for submitting documentation to establish a customer’s status under FATCA law in Singapore. Therefore, for appropriate and legal compliance, it is very important that you obtain the assistance of a FATCA law expert.