FATCA
Foreign Account Tax Compliance Act (FATCA) guidance and documentation for Saint Kitts and Nevis.
FATCA Background
The Foreign Account Tax Compliance Act (FATCA) was enacted by the United States of America on March 18, 2010 as part of the U.S. Hiring Incentives to Restore Employment (HIRE) Act. FATCA is geared towards combating tax evasion by U.S. taxpayers holding assets in non-U.S. financial accounts and institutions.
FATCA requires Foreign Financial Institutions (FFIs) to report to the U.S. Internal Revenue Service (IRS) information on assets held by U.S. taxpayers, or by foreign entities in which U.S. taxpayers hold a substantial (greater than 10%) ownership interest. Where an FFI chooses not to comply with FATCA, the IRS will impose a 30% withholding tax on payments to the FFI and on behalf of its customers.
Entities required to report: non-U.S. financial institutions that accept deposits or hold financial assets on behalf of others.