Foreign Account Tax Compliance Act (FATCA)
The Foreign Account Tax Compliance Act (FATCA), which was passed by U.S., requires that foreign financial Institutions and certain other non-financial foreign entities report on the foreign assets held by their U.S. account holders or be subject to withholding on withholdable payments.
Reporting SGFIs can register or update their FATCA classification at the US IRS' FATCA Registration Portal as a "Reporting Financial Institution under a Model 1 IGA" and obtain a Global Intermediary Identification Number (GIIN) from the US IRS to be included in the US IRS' Foreign Financial Institution (FFI) List.
Provision of FATCA Registration Information to IRAS
Reporting SGFIs must provide IRAS with their FATCA Registration Information. A CRS-registered SGFI should submit only the FATCA Registration Information of the entity under the e-Service. Reporting SGFIs that do not provide their FATCA Registration Information will be unable to file their FATCA returns via myTax Portal.
The application will take about 3 weeks to be processed. Once the application is processed, IRAS will send an email to the Point of Contact or individual trustee to inform him/her on the application’s outcome.
FATCA Reporting Requirements
Under the FATCA Regulations, a Reporting SGFI is required to submit an annual return to IRAS setting out the required information in relation to every US Reportable Account that is maintained by the SGFI. Reporting SGFIs that did not maintain any US Reportable Accounts are required to file a nil return to IRAS, by selecting “Return with Nil Data”.
If you would like to know more, please contact Bestar.