What is the FATCA law ?
The FATCA (Foreign Account Tax Compliance Act) is a US law introduced by the Internal Revenue Service (IRS) and the US Treasury Department, aimed at limiting tax evasion by US taxpayers outside the United States. It came into force on July 1, 2014 and allows the collection of information on accounts held by US citizens (whether individuals or legal persons) with financial institutions such as banks.
By implementing an Agreement in Substance on November 30, 2014 (on the Intergovernmental Agreement IGA model), Tunisia has officially moved to FATCA. This legislation applies to all financial institutions and bodies such as :
- The banks,
- Brokers,
- OPCs,
- Expert funds,
- Insurance companies,
- Securities portfolio management companies,
- Non-resident investment service providers.
The bank ALUBAF applies the procedure relating to this regulatory device FATCA, on companies but also on individuals considered as "US Persons". This translates into providing the Internal Revenue Service (the US government agency responsible for collecting income tax and other taxes) with information on the accounts held by these individuals.
Reportable accounts are those held by one or more US Person or by companies in which one or more US Persons have a participation exceeding 10%.
What is a "US Person"
It should be noted that the term US Person or US Person refers to:
- All US citizens, even those residing abroad who have not renounced US citizenship.
- Anyone legally resident in the United States, especially those with a green card.
- Anyone who spends a long enough time in the United States.
- American companies.