FATCA stands for the Foreign Account Tax Compliant Act and it pertains to the issue of tax abuse by U.S. persons through the use of offshore accounts.
Both financial and non-financial operating companies may be impacted by FATCA and any entity making a payment of income derived from the US must establish whether it is affected by FATCA regulations.
Most non-US entities, be it directly or indirectly, receiving any sort of US derived income, including gross proceeds from the sale or disposition of US property which can produce interest or dividends, will more than likely be subject to FATCA.
Furthermore, under FATCA , financial and non-financial US entities making payments of income originating from the US to non-US persons may also be required to withhold a 30% tax on that income paid.
PANGLOBE realised the necessity to prepare its clients for the impact that FATCA would have on their business operations and have thus done the relevant assessments to determine what steps need to be taken to ensure FATCA compliance.
For any further information that you require in respect of FATCA, please do not hesitate in contacting us on (357) 22 451 222.