FAQ: FATCA-in-a-Box for Trusts

Find out more about the solution in our Frequently Asked Questions

What is FATCA in the box?

FATCA-in-a-Box (FIAB) is a Solution that converts the interpretations and methodologies for the application of FATCA to trust companies, trusts, and other fiduciary structures into an operationalized solution that enables non-FATCA/non-trusts experts to classify relevant entities and perform FATCA compliance obligations.

What is the purpose of the Solution?

It is designed to assist with fulfilment of the FATCA compliance obligations, including:

  • Classification of a Corporate Trustees’ legal entities
  • Classification of a Corporate Trustees’ client structures
  • Evaluation and determination of the relevant FATCA compliance paths
  • Identification of U.S. persons that must be reported under FATCA
  • Identification of the data that must be reported with respect to the U.S. persons
  • Checklists are provided to guide the user through the compliance process

What types of fiduciary structures will the Solution cover?

  • Trusts
  • Corporate Trustee
  • Underlying Companies
  • Corporate Nominee Shareholder
  • Foundations (Stiftungs/Stichting)
  • Corporate Director
  • Anstalt
  • Stand-Alone Companies

What functionality will be included in the Solution?

The full functionality will be as follows:

  • Entity classification, including determination of the relevant regulation, applicable jurisdiction, entity classification as FFI or NFFE, selection of relevant compliance path, and checklist of compliance activities applicable to relevant compliance path
  • Identification of Substantial U.S. Owners (NFFEs) and of Account Holders (FFIs)
  • U.S. Tax Forms W-8/W-9 information statement functionality
  • FATCA reporting statement functionality

Is the full functionality available now?

Version 1.0 of FIAB will cover the determination of the relevant regulation, applicable jurisdiction, FATCA entity classification, and the determination of the FATCA compliance path for Corporate Trustees, Trusts, and Underlying Companies under the final U.S. FATCA Regulations.
There will be product updates in the future to expand the functionalities of the Solution to include: the rules under both the Model 1 and Model 2 IGAs, the additional functionalities described above, and the additional fiduciary structure types listed above

Is the required information available at the trustee-level?

The information required by FIAB is general entity information that should be on file with the trustee. This includes place of organization and operations, beneficial owner information, distributions made to beneficiaries or the value of their interest.

Can FIAB be interfaced with existing internal databases?

FIAB is a stand-alone application that currently does not have the ability to connect to existing internal client databases.

Is it possible to purchase a “light” version of FIAB?

We understand that many organizations are currently evaluating their FATCA compliance approach. We designed a flexible solution the functionalities of which can be purchased on a modular basis. The base module includes the entity classification. 

What additional optional functionalities will be available in the future?

There are a number of tax authorities evaluating the implementation of their own versions of FATCA or aligning FATCA with other global transparency efforts. We are closely monitoring these developments and potential modules in the future may include:

  • European Union
  • U.K. Son-of-FATCA
  • Organisation for Economic Co-operation and Development: Common Reporting Standard

Is the Solution a one-off use or does it have ongoing functionality?

The FATCA regime obligates the review and identification of relevant persons for all relationships that exist as of 30 June 2014. As a result, there will be a significant one-off due diligence, identification, and documentation exercise to be undertaken. FATCA also requires that all new clients are subject to enhanced due diligence, identification, and documentation procedures. The Solution can be used for both the one-off exercise and the fulfilment of the ongoing requirements for pre-existing and new customers.

How will the Solution be priced?
There are three components to the price:

  1. a one-time software application fee,
  2. a one-time license fee for each entity classified with the Solution, and
  3. an annual maintenance fee.

The amount of the one-time license fee depends on the modules purchased. The maintenance fee will be a percentage of the initial license fee and will be payable annually.

Please contact Deloitte for further details on fees for FIAB.

What is included in the maintenance service?

An account manager will be assigned to each client relationship. The maintenance fee will include modifications based on the implementation of new IGAs and the associated tax residency provisions, changes in the regulations or other guidance, and to reflect any changes in interpretations.

What additional support does Deloitte offer?
The software application fee includes a FATCA-in-a-Box user guide. If desired, Deloitte also offers Solution training for your company or together as a group with other companies to assist your team in understanding how to use the Solution and all of its functionalities. Deloitte is also happy to provide ad-hoc advisory support for specific questions.

When will the Solution be available for purchase?
Version 1.0 is available for purchase. Updates will be provided on a monthly or quarterly basis, as needed.

Who do I contact for more information?
Please contact one of our Deloitte experts listed under "Next Steps"