FATCA

Objectives

On completion of this tutorial, you will be able to:

• Define important FATCA-related terms and concepts

• Recognize the requirements that must be satisfied to avoid withholding taxes, including exceptions and exemptions

• Identify the registration process that foreign financial institutions (FFIs) must follow

• Recognize the reporting requirements that US taxpayers must satisfy

• Recognize “passthru” payments and the need for multilateral agreements into which the US Department of the Treasury has entered into with other countries

Tutorial Overview

The Foreign Account Tax Compliance Act (FATCA) is a controversial and unpopular piece of legislation, but the US government deems it necessary in order to ensure that its ability to determine the ownership of US assets in foreign accounts is not hindered. Through enhanced reporting requirements, FATCA is designed to combat tax evasion that the government believes is the result of the use of offshore accounts by US taxpayers.

This tutorial will provide you with a detailed overview of the Act, including two major elements of the legislation – the requirements that must be satisfied for foreign entities to avoid withholding taxes and the requirements that US taxpayers must satisfy.

Prerequisite Knowledge

None

Tutorial Level

Introductory

Tutorial Duration

60 minutes