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.

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.

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.

We make a complex world simple

TMF Group is a leading provider of critical administrative services, helping clients invest and operate safely around the world.

Our 9,100 experts and 120 offices in 85 jurisdictions worldwide serve corporates, financial institutions, asset managers, private clients and family offices, providing the combination of accounting, tax, payroll, fund administration, compliance and entity management services essential to global business success.

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

Our unique global delivery model, underpinned by our innovative digital platforms, means we can cover sectors as diverse as capital markets, private equity, real estate, pharmaceuticals, energy and technology, with experts on the ground providing local support.

With year-on-year growth averaging 8% since 2013, TMF Group is a trusted and reliable partner. Whether operating across one border or many, with a handful of staff or several thousand, we have the business-critical support you need to expand, operate and grow while remaining compliant, everywhere.