Foreign Account Tax Compliance Act – FATCA
Foreign Accounts Tax Compliance Act
FATCA is a mandatory regime for the identification and reporting by Brazilian financial institutions of US Persons clients.
The US and Brazilian governments signed the Intergovernmental Agreement (IGA) on 9/23/2014. Under the agreement, Brazil and the United States will exchange, annually, information on account holders that financial institutions of each country will provide to their respective governments.
B&T, as an currency exchange, is registered with the US Internal Revenue Service (IRS) and must declare the information of its Clients for foreign exchange operations [RFB no. 1571, July 02, 2015] .
US Persons - Who are they? How to identify them?
- They are born in the United States and its territories, except those who have renounced their citizenship
- They are permanent residents in the US [including green card holders]
- Persons who have resided for more than 30 days in the last year or who have resided for more than 180 days in the last 3 years in the US or in their territories
- Holders of dual nationality and American passport, even if they reside outside the US
- Persons who are the children of at least one US citizen
- Persons whose parents became US citizens before reaching 18 years of age
- Account holder at a financial institution in the USA
- A person with any source of income in the USA
- A person who has more than 10% ownership interest in a US company
US Tax Residence – What is it?
- It is the client's fiscal country [income tax returns, for example]
- The fiscal residence may be different from the address where the customer resides
- The persons described above are considered as having tax residence in the US. The client must inform the tax address if it is not the US
- The client may have a US TIN – Taxpayer Identification Number or a Social Security Number.
The Federal Revenue Service of Brazil has established that Brazilian financial institutions should report annually and directly the following information: name, nationality, fiscal residence, address, account number, or contract, CPF, for example:
Doubts? If you have any questions, please contact B&T Corretora at - email@example.com