Integrated services to comply with the FATCA law
¿What is FATCA?
  • USA legislation that promotes cross border tax compliance by implementing an international standard for the identification of US taxpayers with assets abroad.
¿What is the purpose of FATCA?
  • Financial Institutions shall register at the Internal Revenue Services (IRS) and obtain a Global Intermediary Identification Number(GIIN) and be considered as a participating entity.
  • To identify owners of financial assets abroad.
  • Set forth the policies and procedures for the proper identification of US tax payers with assets abroad.
  • Set forth the policies and procedures for the proper identification of financial asset control by US Tax Payers.
  • To report to the IRS US Tax payers holding financial assets abroad exceeding certain amount set forth in FATCA Law.
  • To execute measures and procedures in order to identify US Tax Payers being beneficiaries of trust or other similar structures register outside the United States of America.
  • To designate an internal officer for FATCA matters.
Who is enforced by FATCA Law?
  • Financial and no financial entities domiciled outside the United States are subject to FATCA Law. The term Financial entity shall be deemed as banks, cooperatives, pension funds, broker houses, mutual funds, wealth management office or private banking, trust and insurances companies, law firms among others
  • US corporations obliged to withhold taxes for payments made to financial institutions or participating financial institutions.
  • To foreign governments that must negotiate an intergovernmental agreement (IGA) with USA authorizing the delivery of confidential information an define the reporting mechanism to the IRS.
¿What is IGA?
  • The intergovernmental agreement duly signed between the US and a foreign government on reciprocal or non-reciprocal basis.
  • Panama executed an IGA under Model 1 with the USA, that is to say, that Financial Institutions subject to FATCA will report to the Panamanian Government and the latter to the IRS.
Who is a US taxpayer?
  • Any US Citizen or resident in the US notwithstanding the precedence of its income.
  • Any entity organized under the laws of any state of USA or USA territory.
  • Any individual or corporation having an income within the territory of USA.