A new update on the deadlines of Foreign Account Tax Compliance Act, best known as FATCA, was reported on 4 June 2015. FATCA enrolment and reporting deadlines for 2015 for BVI RFIs to enrol with, and report to the BVI International Tax Authority (the “BVI Tax Authority”) have been extended.
About FATCA
The provisions commonly known as the Foreign Account Tax Compliance Act (FATCA) became law in March 2010 and it targets tax non-compliance by U.S. taxpayers with foreign accounts.
FATCA focuses on reporting:
- by U.S. taxpayers about certain foreign financial accounts and offshore assets
- by foreign financial institutions about financial accounts held by U.S. taxpayers or foreign entities in which U.S. taxpayers hold a substantial ownership interest.
The objective of FATCA is the reporting of foreign financial assets; withholding is the cost of not reporting.
The update
- the deadline to enrol with the BVI Tax Authority has been extended to 30 June 2015; (which has been and extended from 1 June 2015)
- the deadline for submitting a report to the BVI Tax Authority has been extended to 31 July 2015. (Extended from 30 June 2015, which was extended from 31 May 2015).
For subsequent years, the deadline for enrolment will be 1 April and the deadline for reporting will be 31 May in the relevant year.
This reminder of the impending deadlines and action that is required for those BVI entities that are classified as “Foreign Financial Institutions” for the purposes of FATCA. No action is required for BVI entities that are not Foreign Financial Institutions.
Reporting must be done through the BVI Portal to the BVI Tax Authority, which will share such information with the US Internal Revenue Service (“IRS”). BVI RFIs are required to submit information to the BVI Tax Authority electronically via the BVI Portal.
The BVI Portal allows BVI RFIs to submit their FATCA filings on reportable accounts either by manually entering the information into an online form on the BVI Portal or uploading an XML file. Whether this information is entered manually or by uploading a file, the information submitted is then validated. The system will only accept XML filings that are in the correct format as stipulated by the US FATCA XML Schema.
How can we support?
TMF Group is a global leader in managing and administering trusts worldwide, with more than 5,500 accounting and legal administration professionals across more than 80 countries around the globe. Our wholly-owned network of 120 offices enables us to support the widest range of multi-jurisdictional investments and efficient structuring possibilities. We have also assisted thousands of companies to establish and manage tax-efficient holding and finance structures in the major onshore and offshore treaty hubs for more than 25 years.
TMF Group in the British Virgin Islands (BVI) has been a pioneer in the financial services industry and is regulated and licensed by the Financial Services Commission. Our BVI team has been leading the field since 1988, and were a pioneer in the local financial services industry. Our qualified, knowledgeable staff have many years’ international experience in the offshore industry. We can provide legal, compliance, trust and estate planning, accounting, mutual fund, company management and company administration support for complex structures or family operations.
Learn more about doing business in BVI
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