Both the US FATCA, and the Organisation for Economic Co-operation and Development (OECD) Common Reporting Standard (CRS) have the ability to significantly shift the fight against worldwide tax evasion.
Both regimes aim to automatically report and share financial information by enforcing obligations on Financial Institutions to undertake due diligence and report account holders. Though the two regimes are fundamentally similar, they are separate frameworks with specific penalties for non-compliance.
The level of compliance imposed on an institution will depend on whether it is classed as a:
The impact of FATCA and CRS will vary according to the circumstances of each entity, with detailed analysis required to determine full levels of exposure.
FIs have now started collecting information for their reporting, and as part of that exercise they require entities to provide their FATCA and CRS classifications, as well as providing updated US withholding forms. The current withholding forms have been updated to include FATCA classifications. As with the old withholding forms, these are valid for three years from issue unless a significant change occurs for the respective entity.
Here at Frank Hirth, we have a specialist team that assists with FATCA and CRS compliance, including classification services. We also advise on withholding tax requirements, whether you are a US withholding agent or foreign payee.
In this article we tackle the complex rules of US real estate ownership and what this means for your tax planning… twitter.com/i/web/status/8…
+44 (0)20 7833 3500
London: 236 Gray's Inn Rd, London WC1X 8HB, UK
+1 212 465 7800
New York: 100 Wall St, Suite 802, New York, NY 10005, USA
+64 4 499 6444
Wellington: Level 4, Office 2, 24 Johnston Street, Wellington 6011, New Zealand