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(Foreign Accounts for Tax Compliance American Act - FATCA
Foreign Accounts for Tax Compliance American Act (FATCA) is an important development in the USA efforts to combat fiscal evasion by individuals of US nationality who have investments in accounts outside of their country.
According to FATCA, specific USA taxpayers holding financial assets outside of the United States should report such assets to the Internal Revenue Service – IRS. Also, FATCA shall request foreign financial institutions to report directly to the IRS about specific information pertaining to the financial accounts of USA taxpayers, or foreign entities in which USA taxpayers have considerable asset interest.
The individual should be dealt with as important according to FATCA if one of the items below is applicable:
An individual with a residency permit in the US or American national
An individual with a US address
An individual born in the US
An individual with an address “in care of” or “hold mail” which is the only address of the account holder
An individual who has given authorization to an individual with an address in the United States of America
An individual who has instructions to transfer funds to an account maintained in the United States or instructions obtained from an address in the USA.
