1. What is FATCA?
The U.S. Foreign Account Tax Compliance Act (FATCA) was enacted in 2010 by the U.S. Congress in an effort to combat perceived tax evasion by certain U.S. persons with offshore accounts and assets.
FATCA requires non-U.S. Financial Institutions (so-called Foreign Financial Institutions - FFIs) to report information about specified financial accounts held by U.S. taxpayers or by certain foreign legal entities in which U.S. taxpayers hold a substantial ownership interest, to the U.S. Internal Revenue Service (IRS) either directly or via national tax authorities. Under certain conditions FFIs are also required to withhold on payments they make to specified financial accounts.
2. Role of Allianz Lanka on FATCA compliance
Allianz Lanka is committed to the highest standards of compliance with applicable laws, including regulations regarding the prevention of international tax evasion. In this context, Allianz Lanka strives to establish policies and procedures for compliance with FATCA.
Allianz Lanka will support an exchange of FATCA-related account information among tax authorities, by providing them with relevant data according to applicable FATCA laws and regulations. Non-compliance by Allianz Lanka as a Participating FFI can expose Allianz Lanka to regulatory, reputational and withholding risk.
3. Who is a US Person?
- A citizen or resident of the United States
- A domestic partnership
- A domestic corporation
- Any estate other than a foreign estate
- Any trust if:
i. A court within the United States is able to exercise primary supervision over the administration of the trust, and One or more United States persons have the authority to control all substantial decisions of the trust
ii. Any other person that is not a foreign person.
4. FATCA Forms