What is FATCA?
The law of Foreign Account Tax Compliance Act (FATCA), it is a law american and Its purpose prevent the tax evasion of the American taxpayers through of information Exchange with financial institutions worldwide.
What is FATCA?
It is the law called Foreign Account Tax Compliance Act. ( FATCA. Issued in March 2010, with the objective of identifying and obtaining information about citizens, residents and taxpayers of the United States, whoever has money or other financial assets outside the United States.
When does it come into effect in Panama?
The main changes established in the norm come into effect on July 1, 2014. There being a delay in the signing of the IGA treaties while negotiating to eliminate a series of demands imposed by the United States as to exclude some entities from the financial sector.
Who are considered U.S. Person for compliance with FATCA?
American citizens (by birth or naturalization), tax residents (those who have Green Card residence cards meet the requirement of substantial presence greater than 183 days in the last 3 years). Likewise, companies incorporated in the United States, or in accordance with the legislation of the United States, and companies with at least one shareholder.
What are the main obligations of FATCA for financial institutions?
a- Identify US clients (U.S. Person) that comply with the indications and other conditions established by FATCA.
b- Report the information of the financial accounts of the clients that are considered US persons (U.S. Person), according to the FATCA regulations.
c- Withhold 30% of the income received from the US source, as a tax to customers who do not provide the required information