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Federal Tax ,FATCA Law & Tax Information in Singapore

The Foreign Account Tax Compliance Act, FATCA is not exactly a tax, but a framework to combat tax evasion related to US taxpayers. The regulations to FATCA compliance Singapore require tax authorities to obtain the detailed bank account information for taxpayers. The act solely intends to increase transparency for the IRS to make sure that US taxpayers pay the appropriate taxes on wealth held in accounts outside the country. However, in case of any default, FATCA law Singapore may impose a penalty on those who fail to comply.

The main objective of the act is to identify and prevent the ignorance of offshore tax by liable taxpayers. The provision of the act affects financial institutions, non-financial institutions, and individuals among others. Specifically, FATCA federal tax Singapore has included additional tax guidelines for both financial institutions (known as FFIs) based outside of the US as well as US persons with foreign financial assets.

Our team works with FFIs who have GIIN registration or FATCA Tax Singapore related reporting requirements. Because of the need to utilize the modern technology in extracting FFI client data, transforming it into the right XML format and reporting it accordingly.

We offer FFIs FATCA Banks Singapore reporting solutions from US$2, 000

We have worked with several US persons who now aware of their liabilities to the act of FATCA Singapore and file the Form 8938 as part of their annual tax filing.

Non–Financial Institutions based overseas are sometimes known as NFFEs or non-financial foreign entities. We work with NFFEs that have been given W-9s and W-8-Ben-Es to complete by their banks. Our experienced tax specialist team would be happy to assist you with the analysis of the entity needed to complete these forms

As a regulated financial institution, we Advance American Tax complies with FATCA compliance Singapore and Common Reporting Standard (CRS). Both the tax regulations required the Foreign Financial Institutions (FIIs) including FATCA banks Singapore to collect and report information about the financial accounts held by the US taxpayers or by foreign entities.

To overcome the challenges of FATCA compliance, if you have been asked to trust the expertise of Advance American Tax professionals in Singapore, you may have some questions which you want to get the answer to sorted first. We aim to answer any questions you may have regarding FATCA compliance Singapore and the consequences regarding its non-compliance.

Frequently Asked Questions On FATCA Compliance

Q1. What is FATCA?

The Foreign Account Tax Compliance Act (FATCA) is a US federal law which is purposely introduced to combat the tax evasion of US taxpayers. FATCA intended to promote the cross-border tax compliance by implementing an international standard for the exchange of information by the FIIs (Foreign Financial Institutions) to obtain the detailed account information and tax status of US taxpayers.

Q2. What is the objective of FATCA?

The main objective of FATCA compliance Singapore is to eliminate the offshore tax evasion by US citizens or residents by increasing the transparency of their status for federal tax Singapore and imposing a withholding tax when the documentation and reporting requirement doesn’t match.

Q3. Who is liable to file FATCA?

U.S. citizens, or residents, and some qualified nonresident individuals who hold certain foreign financial accounts or other offshore assets (specified foreign financial assets) outside the US must report the detailed of those assets.

Q4. Is FATCA mandatory?

Yes, FATCA declaration is mandatory to all those US taxpayers who hold foreign financial assets with an aggregate value of more than the reporting threshold (at least $50,000) to report detailed information about those assets as well as the tax status on Form 8938, which must be attached to the taxpayer’s annual income tax return.

Q5. Is FATCA only for US residents?

Yes, FATCA compels US citizens at home and abroad to file annual taxation reports on any foreign account holdings

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