Introduction
What is FATCA??
- FATCA stands for Foreign Account Tax Compliance Act.
- It was enacted by the United States (“US”) to target non-compliance with US tax laws by US persons using non-US accounts.
- FATCA requires Financial Institutions outside the US to report on the assets held by their US account holders or be subject to withholding tax on certain payments.
- The main objective of the information exchange is for tax authorities to detect and deter taxpayers that have kept their untaxed money in accounts held in foreign financial institution.
FAQ
Why is this relevant to me as a customer?
- Financial Institutions are required to establish the tax residence of their account holders, and for FATCA purposes, to identify specified US persons.
- As such, you will be asked for information on your jurisdiction of residence for tax purposes, or confirmation of your non-US or US person status and your Taxpayer Identification Number if applicable. In addition, you may be asked to explain or provide supporting document to verify your tax residence or non-US person status.
- If you maintain or open an account in the name of a company, partnership or trust (such accounts are categorised as “entity accounts”), you could be asked to provide information relating to the tax residence of the entity and in some situations, the details of individuals who control the entity.
- The Branch will then report to IRAS the financial account information of customers who are specified US persons to IRAS annually to onward transmit the information to the US IRS.
What if my information or tax status change after my initial declaration?
- Please inform and update us on the change which affect your tax residency status (e.g. you have been seconded by your employer to work in the US for more than 6 months and you are a tax resident there) as soon as reasonably possible.
- You will be required to complete new self-certification and provide the relevant details.
