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, Federal Tax Singapore,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 and help in Federal Tax Singapore

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.

The underlying logic behind US Tax Singapore is to ensure that the right taxes are deducted from the US citizens who are international assets holders. The lack of compliance can cause huge reclaiming of the tax money. As a result of the same, it is necessary to declare offshore assets.

American Tax Singapore is designed to ensure that the international institutions register themselves with the IRS and report the required information of US citizens and their holdings. Once such an important information is delivered by the institution, a large part of the process is done.

End-to-End Compliance Solution To FATCA Tax in Singapore

Tax expert’s excellence in compliance with FATCA tax Singapore has always been on the priority of tracking development introduced in FATCA legislation. Their expertise and sound knowledge of FATCA compliance in Singapore empower the taxpayers to effectively and legally cope up with FATCA regulations, effectively. These FATAC law experts in Singapore encompasses the following initiatives:

  • Group profiling
  • Identify US indicia
  • Verification rules
  • Report manager
  • Assets aggregation
  • Establish audit trail for IRS

Significant Features Of FATCA Law In Singapore

As mentioned, FATCA is specifically introduced to detect the non-US financial accounts of US citizen taxpayers and enforce the collections. In addition to this standard policy of FATCA federal tax Singapore, there are certain prominent features of FATCA which US taxpayers living overseas must know.

  • Identification-The law of FATCA in Singapore helps in the identification of the account holder as a US citizen, thereby containing all the details like name, address, contact number, residence, mailing address of the respective individual, tax identification number (TIN) and so other crucial information.
  • Foreign Relations– FATCA narrow down the gap between the US and Singapore and establish a trusted link between both the country. Compliance with FATCA tax Singapore assists the US citizen who has been refused by the foreign banks to open an overseas account, making it easy and convenient for them to work and stay in Singapore.
  • Revenue-It is due to the lack of awareness of US taxpayers that led the FATCA Banks Singapore helped the IRS to receive penalty amounts from the FBAR (Foreign Bank Accounting Report). However, during implementation, it was estimated by the United States Congress Joint Committee on FATCA to produce approx $8.7 billion in additional tax revenue over 11 successive years.

We are at the forefront of monitoring development in FATCA law Singapore to evaluate custom tax solutions for financial institutions to comply with FATCA effectively. In order to the meet regulatory requirements of Foreign Act Tax Compliance Act tax law, our FATCA experts offer comprehensive FATCA reporting and advisory services- from FATCA classification, registration, onboarding, pre-existing account on due diligence, and reporting.

Our FATCA solution provides a fully integrated solution to help firms (foreign (non-US) financial institutions) address the challenges of FATCA tax in Singapore and reduce the risk and improve profitability whilst safeguarding regulatory compliance. If you’re affected by the provision of complicated FATCA law in Singapore, our tax specialist can assist you the best way possible to minimize your last-minute FATCA compliance burden.

Frequently Asked Questions On FATCA Compliance Singapore

Q. 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.

Q. 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

Q. What is the purpose of FATCA law in Singapore?

FATCA came into the existence to reduce tax evasion and increase the transparency for the Internal Revenue Service (IRS) with respect to US persons that may be investing and earning income through non-US institutions. Whereas the primary aim of FATCA law Singapore is to gain detailed information about US persons, it also imposes tax withholding where the applicable documentation and reporting requirements are not met. 

Q. 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. 

Q. What are the withholding requirements under FATCA compliance in Singapore?

In general, FATCA withholdings break into two significant categories, namely foreign financial institutions (FFI) or a non-financial foreign entity (NFFE). In addition, as per the FATCA regulations in Singapore FFI need to withhold 30% on payment it makes to the recalcitrant account holder, as well as to the payment it makes to another FFI unless it meets certain requirements. 

Q. Is FATCA tax in Singapore applicable to personal or business customers?

FATCA compliance in Singapore impacts both personal and business customers who hold an account, policy, or agreement with FATCA authorized banks.

Q. What is a US person?

The term US Person, United States person here, means:

  • A citizen or the resident of the United States
  • A domestic partnership
  • A domestic corporation
  • Any trust if:

–  One or more US person has received the authority to control all substantial decisions of the trust, and

–  A court within the US exercise supervisory power over the administration of the trust

Q. What does FATCA means for you if you’re a US person?

If you are categorized under US persons, you may be required to provide essential information and documentation to the FATCA representatives with compliance to FATCA in Singapore. You can visit the official website of the IRS to determine if you need to submit any additional IRS forms or other documentation.

Q. What kinds of information or documents I need to provide for compliance with FATCA Singapore?

You need to provide details of the information and documentation that FATCA authority may need in order for compliance with FATCA banks in Singapore purposes. However, documents may include US tax forms (including withholding certificates or W forms) or self-declaration of FATCA compliant status.

Q. What will FATCA do If you fail to provide the information required under the law of FATCA in Singapore?

If in case, you do not provide the information/documents, you can’t be able to open new accounts or offer additional products or services to customers who choose not to comply with the FATCA requests for submitting documentation to establish a customer’s status under FATCA law in Singapore. Therefore for appropriate and legal compliance with FATCA law in Singapore, you need to get the assistance of our FATCA law experts.