FATCA: Time to Act
The requirements of FATCA will apply to all financial institutions, including the branches and subsidiaries of foreign entities.
The Foreign Account Tax Compliance Act (FATCA), part of U.S. legislation, is aimed at preventing tax avoidance by U.S. citizens and residents through the application of international financial tools. FATCA establishes requirements for financial institutions around the world to identify the financial accounts of American taxpayers and provide information on them to the U.S. tax authorities.
If a financial institution fails to submit the required information, then certain types of the income of that financial institution will be subject to a 30% withholding tax.
What is FATCA?
We have a proven approach for providing support to financial institutions in the development of measures for the implementation of the requirements of FATCA. Our team has directly participated in the implementation of such projects in the Russian Federation. We will be delighted to answer any questions you may have regarding the understanding of the key requirements of FATCA.