Foreign Account Tax Compliance Act (FATCA) was introduced as a part of the HIRE Act 2010 with a purpose to prevent tax evasion by US citizens with the use of offshore accounts. The regulatory act requires foreign financial institutions (FFIs) to provide transparent and up-to-date information to the IRS, directly or via local tax authority, on accounts held by the US citizens or entities. For FATCA compliance in Singapore, one needs to have a detailed understanding of its regulations and penalties imposed by the authorities.
You may know that FATCA requires foreign financial institutions to provide information, but do you know, despite this, it also requires non-financial foreign entities (NFFEs) to unfold the identities of their US owners to the IRS? Are you aware of the fact that the FATCA law in Singapore imposes a strict penalty of 30% withholding tax on payments made to non-participating FFIs, who refuse to share the information with the IRS? The guidance of the right FATCA tax expert will help you comply with FATCA compliance.
End-to-End Compliance Solution To FATCA Tax in Singapore
Tax expert’s excellence in compliance with FATCA tax Singapore has always been on the priority of tracking development introduced in FATCA legislation. Their expertise and sound knowledge of FATCA compliance in Singapore empower the taxpayers to effectively and legally cope up with FATCA regulations, effectively. These FATAC law experts in Singapore encompasses the following initiatives:
- Group profiling
- Identify US indicia
- Verification rules
- Report manager
- Assets aggregation
- Establish audit trail for IRS
Furthermore, FATCA professionals provide a flexible framework for FATCA in Singapore as well as CRS enables financial institutions to comply with updated data consistency whilst strengthening audit capability.
- Identification of account holders- Enables the financial institution to identify the accounts of US citizens based on US indicia, as mentioned in FATCA regulations. This will follow the various business rules for determining reportable accounts, taking into consideration the previous one which is already excluded from FATCA.
- Streamlines regulatory- The regulations for FATCA tax in Singapore aim to reduce the level of tax avoidance by U.S citizens and entities through non-U.S. financial institutions and offshore accounts. However, expert FATCA compliance in Singapore streamlines regulatory, data, and onboarding processes while enabling financial institutions to meet their tax compliance obligations.
- Integration- These FATCA compliance experts in Singapore supports the financial enterprise to link as well as integrate the accounts of US individuals and entity across different business units. They simply facilitate these obligations by taking into accounts the following reference, for instance, customer name, customer ID, and tax identification number. This will simplify to aggregate the balance of accounts held by the US citizens, to identify whether the balance is above the threshold amount, and the accounts are reported under FATCA.
- Updated information- FATCA experts the efficient and easy way to reveal the FATCA- specific information through specific data, which works best to make the on-going process of tracking and managing citizens US indicia a lot easier and hassle-free. Their advanced FATCA compliance solution in Singapore conducts an extensive client identification process according to pre-identified US indicia on all available US citizen data.
- Robust reporting- Evaluates reports for FATCA taxed accounts, as per the guidelines issued by the IRS or the proposed tax authority of the home country. However, the evaluated FATCA reports will vary depending on the type of accounts it belongs to, for instance, determining whether it is a custodial account, depository account, or the account of an investment or insurance entity.
Whatever the FATCA challenges or complications you are facing, it is the sound knowledge of tax professionals that may help you comply with FATCA requirements effectively.