Foreign Account Tax Compliance Act (FATCA) services

The United States FATCA law has far-reaching consequences for non-US companies with US assets or accounts. Failure to comply can mean big penalties and multiple country-specific mechanisms make global compliance complicated.

TMF Group’s comprehensive FATCA compliance services and global network of local experts can simplify and support any aspect of compliance or relieve you of the entire burden.

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What is FATCA?

Under FATCA, the Foreign Account Tax Compliance Act, any company officially classified as a ‘foreign financial institution’ (FFI) must report to the US authorities any financial accounts held for US persons or citizens, as well as any foreign entities in which US persons or citizens own a substantial stake. Penalties for failure include a 30% withholding tax on gross US earnings.

FATCA compliance is through bilateral inter-governmental agreements (IGAs), which vary from jurisdiction to jurisdiction, making global compliance complicated.

  • Some IGAs let FFIs report locally – but only through that jurisdiction’s unique local process because the FATCA requirements have been incorporated into local law in a distinctive way.
  • Other IGAs let FFIs report straight to the US tax authorities but here there is a risk of conflict with local regulations governing things like data protection.

FATCA reporting, classification and compliance with TMF Group

Classification

Companies must determine for themselves whether they qualify as an FFI or fall into some other FATCA classification. TMF Group’s comprehensive classification service does this job quickly and reliably.

Registration

We help FFIs register with the US tax authorities (IRS) to obtain their Global Intermediary Identification Number (GIIN). 

New client onboarding

For FATCA onboarding, customer due diligence checks must be performed on all new account holders to check whether they are ‘reportable’. We help collate and review the critical documentation, identify US indicia (signs of possible FATCA reporting obligations) and resolve any problems, working sensitively with the account holder where necessary.

Due diligence for existing accounts

As with onboarding, we collect, review and assess account-holder information, review indicia, and help resolve issues as part of FATCA due diligence. We then provide clients and their account holders with clear compliance overviews.

Reporting

Whether reporting direct to the US or via the local tax authorities, our FATCA reporting services relieve international clients of their entire administrative burden, as well as all procedural uncertainty, across any number of jurisdictions.

One world of local service

TMF Group is an independent global multinational with some 7,800 in-house experts across 120 offices covering 80-plus jurisdictions. Together we deliver a broad portfolio of consistent, integrated but localised services covering the business administrative essentials of accountancy and tax, HR administration, global payroll and employee benefits, and global entity management, corporate secretarial and regulatory compliance.

Rapid response consultancy solutions support cross-border projects large and small, at every stage, across all our disciplines, and in every market.

Specialised teams support fund and capital markets administration and private wealth and family offices.

Because we know how to unlock access to some of the world’s most attractive markets – no matter how complex – swiftly, safely and efficiently, more than 60% of the Fortune Global 500 and FTSE 100, and almost half the top 300 private equity firms, use us.

So, whether you are operating across one border or many, with a handful of staff or several thousand, we have all the flexible, coordinated, business-critical support you need to open up in new markets, build strong businesses and stay nimble, efficient and in good standing everywhere.