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FATCA

LOI FATCA

Foreign Account Tax Compliance Act

What is FATCA?

FATCA is a law that was passed in the United States in 2010. This law is intended to detect "US persons" who use foreign accounts to avoid paying US tax.

Under FATCA, non-US financial institutions must disclose to the IRS any relevant information about financial accounts held by a client identified as a US Person. In the event that a non-US financial institution does not comply with FATCA, the IRS may impose a 30% withholding tax on US source payments made to that financial institution or its customers.

What is a person from the United States?

According to US tax law, a "US person" is defined as:

  • every citizen of the United States (including a person born in the United States who resides in France or in another country and has not renounced his US citizenship);
  • any legal resident of the United States (including a US green card holder);
  • and any permanent resident of the United States.

You can also be considered a "US" person if you spend a long enough period each year in the United States. If in doubt, please contact your tax advisor.

US corporations, estates and trusts could also be considered US persons.

US persons are generally required to file an annual income tax return and submit additional information to the US government.

For more information on US tax obligations, please visit the IRS website at : www.irs.gov/individuals/international-taxpayers/us-citizens-and-resident-aliens-abroad.