Foreign Account Tax Compliance Act (FATCA) is a legislation passed by the Internal Revenue Service (IRS) and the United States Department of the Treasury, in order to promote fiscal transparency and strengthen compliance with tax obligations of citizens or residents . It was signed into law as the United States on March 18, 2010.
FATCA requires financial institutions around the world identify clients with tax nationality or residence in the US that have, among others, financial accounts abroad and annually report their positions and movements to the US tax authority. To ensure compliance with FATCA, 30% withholding tax on certain payments made to entities and individuals who fail to comply with FATCA will apply.
FATCA requires financial institutions around the world that meet a series of requirements:
- Identify any customers who hold an account at Zuma Bank, and answer the following characteristics:
- Citizens or residents of the United States.
- Corporate America.
- Certain legal entities, mostly heritage, with American owners.
- Holders of accounts that do not provide the required identification documents.
- Report information of account holders mentioned previously, the IRS or to the competent tax authority.
ZUMA BANK CORPORATION, in compliance with international standards is attached to this law and asks its customers filling the following forms.