What is FATCA?
The Foreign Account Tax Compliance Act (FATCA) is a tax law that requires U.S. persons to file annual reports on any foreign account holdings.
On the 19th August, 2016 Trinidad and Tobago entered into a Model 1A Inter-Governmental Agreement (IGA) with the U.S. and brought same into our local laws by the passage of the Tax Information Exchange Agreements (United States of America) Act, 2017 (TIEAA).
The Board of Inland Revenue (BIR) was appointed the competent authority for the purpose of FATCA reporting. All reporting financial institutions within Trinidad and Tobago are required to provide the BIR with information on U.S. Reportable Accounts held by U.S. persons.
Who are considered U.S. Persons?
Persons who have one or more of the following U.S. Indicia:
- U.S. person citizenship (Lawful permanent resident/ green card holder).
- A U.S. place of birth/ incorporation.
- A U.S. address i.e. residence address or mailing address in the U.S. (including U.S. post office box).
- A U.S. telephone number.
- A U.S. address i.e. residence address or mailing address
- Standing Order instructions to transfer funds to an account maintained in the U.S. or directions regularly received from a U.S. address.
- A U.S. “in-care-of” or “hold mail” address that is the sole address the Foreign Financial Institution (FFI) has identified for the account holder.
- A power of attorney or signatory authority granted to a person with a U.S. address.
What is a US Reportable account?
A U.S Reportable Account is an account held by one or more U.S. Person or by a Non-U.S. entity with one or more controlling person that is a U.S. Person.
A joint account which has one U.S. Person as an owner is treated as a U.S. Reportable account and the entire account shall be subject to reporting. Where the joint account has more than one U.S. Person as an accountholder, each holder will be attributed the entire balance or value of the account.
The current reportable threshold amount for the total balance of all accounts held by a U.S. person is equal to or greater than USD$50,000.00 (or its equivalent in other currencies). In the case of accounts operated by U.S.-Entities, the threshold amount is equal to or greater than USD$250,000.00 and up.
What is your Responsibility?
- Complete the applicable form (below) to determine whether you are a U.S person/Entity.
- Inform the TTCD (or your respective broker) of any changes relating to your U.S. status.
disclaimer
In keeping with the reporting requirements outlined for countries that have entered into a Model 1 IGA Agreement, we will be required to report you as ‘Recalcitrant’ to the United States Inland Revenue Service via the Board of Inland Revenue.
Should you have any further questions and/or concerns regarding this notice, please do not hesitate to contact us at 1 (868) 625-5107 ext. 225, 234, 235 and 242.
For further information about the Foreign Account Tax Compliance Act please visit www.irs.gov/Businesses/Corporations/Foreign-Account-Tax-Compliance-Act-FATCA
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