This website endeavors to point out the basics and meaning of FATCA (Foreign Account Tax Compliance Act) for you as clients of financial service providers such as banks and insurers. It further endeavors to offer assistance for the purpose of determining whether a person is affected by FATCA and to indicate the effects of a triggering circumstance. As a result of FATCA, information on assets of affected clients must be reported to the American tax authority, the IRS (Internal Revenue Service). So that problems due not arise for affected persons as a result of FATCA, it is of central importance that you fully comply with your US tax obligations. For this reason, these obligations are also addressed on this website.
This website does not constitute an advisory tool. Please read the important legal information below.
It is also important to note that the regulatory statutes on FATCA are still in the consultation phase and upcoming changes may still be applied.
With the introduction of FATCA, the US government is striving for disclosure of the assets of US tax persons held by financial service providers throughout the world. Beginning in 2014, FATCA should ensure that all foreign financial intermediaries provide insight into business relationships with US tax persons to the American tax authority IRS. For example US citizens, US dual-citizens, green card holders, persons who stay for an extensive period of time in the USA for work, as well as US partnerships and US legal entities are deemed to be US tax persons. Upon the coming into force of the law, all foreign financial service providers (e.g. including Swiss banks) must periodically and automatically report the identity and assets of their US clients to the IRS. As part of the process, FATCA goes significantly further than the applicable Qualified Intermediaries provisions.
As leverage for the enforcement of FATCA, a new 30% withholding tax is being imposed on all income from US securities. The withholding tax can only be avoided if the financial service provider enters into an agreement with the IRS that obligates the service provider to comply with FATCA provisions.