What is a specified US person under FATCA?

What is a specified US person under FATCA?

(3) Specified United States person Except as otherwise provided by the Secretary, the term “specified United States person” means any United States person other than— (A) any corporation the stock of which is regularly traded on an established securities market, (B) any corporation which is a member of the same …

What is non participating FFI under FATCA?

The term “Non-Participating Foreign Financial Institution” means a non-participating FFI, as that term is defined in relevant U.S. Treasury Regulations, but does not include a South African Financial Institution or other Partner Jurisdiction Financial Institution other than a Financial Institution identified as a Non- …

What is an exempt beneficial owner under FATCA?

Exempt Beneficial Owner The term Exempt Beneficial Owner means any of the following persons: (A) Any Foreign Government, any political subdivision of a Foreign Government, or any wholly owned agency or instrumentality of any one or more of the foregoing; OR.

What is non FFI?

The US Treasury definition of a Non-Participating Foreign Financial Institution: “The term non-participating FFI means an FFI other than a participating FFI, a deemed-compliant FFI, or an exempt beneficial owner.”

Who is eligible for FATCA?

A FATCA needs to be filed by any American taxpayer with financial assets totaling $50,000 or more. Those assets may be in a bank account or may be in stocks, bonds, and other financial instruments.

Who Must File FATCA?

FATCA requires certain U.S. taxpayers who hold foreign financial assets with an aggregate value of more than the reporting threshold (at least $50,000) to report information about those assets on Form 8938, which must be attached to the taxpayer’s annual income tax return.

What does exempt beneficial owner mean?

Exempt Beneficial Owner means a Governmental Organisation, an International Organisation whose income does not benefit private persons, a Central Bank, a qualifying Retirement Plan, Entity wholly owned by an Exempt Beneficial Owner.

What happens if your account is not FATCA compliant?

In case of non-compliance by May 1, accounts will be blocked i.e. no transactions will be allowed in such non-compliant accounts this date. If you still haven’t submitted the FATCA declaration in your mutual fund investments then you must hurry.

Who is considered a beneficial owner of an account?

Where the customer is a company, the beneficial owner is the natural person(s), who, whether acting alone or together, or through one or more juridical persons, has/have a controlling ownership interest or who exercise control through other means.

What entities are exempt from beneficial ownership rule?

Sole Proprietorships. Trusts (other than statutory trusts created by a filing with the Secretary of State or similar office) Authorized Users for credit cards. Non-Account Owners.

What is a recalcitrant account holder?

Recalcitrant account holder means any account holder who fails to comply with FATCA information requests or to waive banking secrecy. Section 1471 (d) (6).

What is FATCA (foreign account Tax Compliance Act)?

The Foreign Account Tax Compliance Act (FATCA) is a piece of US legislation designed to prevent tax evasion by US citizens using offshore banking facilities. FATCA creates a new tax information, reporting and withholding regime, designed to enable the US IRS to gain information about US persons and US source income held outside the US.

What is FATCA and how does it affect you?

Broadly, FATCA requires non-US financial institutions to enter into agreements with the US Internal Revenue Service (IRS) to provide certain information about their US account holders. If a financial institution fails to comply with its obligations under FATCA, it may be subject to a 30% withholding tax on payments of US source income.

What happens if a financial institution fails to comply with FATCA?

If a financial institution fails to comply with its obligations under FATCA, it may be subject to a 30% withholding tax on payments of US source income. FATCA requires information to be provided in respect of certain accounts in existence on or after 30 June 2014.