FATCA Full Form
Foreign Account Tax Compliance Act
FATCA full form- Hello Everyone, In this article we will discuss about FATCA,Full form of FATCA, About FATCA,Use of FATCA, Advantages of FATCA and others.
FATCA full form
The full form of FATCA is Foreign Account Tax Compliance Act.
It is an Foreign Account Tax Compliance Act that was enacted in 2010 by congress to target non-compliance by U.S taxpayers using foreign accounts or by foreign entities in which U.S taxpayers hold a substantial ownership.
The reason behind launching FATCA in 2010 is to promote tax compliance and discourage tax evasion. The main aim and objective of FATCA is to prevent tax evasion.
FATCA Used For
- FATCA are used for the following purposes which are as follows:
- FATCA is used to locate U.S. citizens (residing in the U.S. or not) and U.S. persons for tax purposes.
- It is used to collect and store information including total asset value and Social Security number.
- The law is used to detect assets, rather than income.
Advantages Of FATCA
Benefits of FATCA are as follows:
- Helping to avoid 30% withholding tax on all US source payments.
- It also provides 30% withholding tax in future.
- It also helps to avoid unwanted attention from the Internal Revenue Service (IRS) that might infer that the account holder is trying to evade taxes.
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