www.doingbusinessincolombia.com
EMAIL info@doingbusinessincolombia.com
TEL +57-305-461-9162
Our clients when they are doing business in Colombia have been requested by Colombian banks to file a form for FATCA.
This word stands for Foreign Account Tax Compliance Act. Its main purpose is to control the tax evasion of US residents who have investments outside of the US. This law primarily targets financial institutions outside of the US. Its objective is to identify and obtain information about US citizens and residents who have money and other assets outside of the US in order to prevent tax evasion through mechanisms such as direct or indirect investments in foreign countries, especially those with tax advantages for foreign investments.
What does it consist of?
FATCA will come into effect starting in 2013. This law does not seek to increase taxes for US nationals. Instead, it aims to identify and obtain information about US residents who have money and other assets outside of the US to prevent tax evasion through mechanisms such as direct or indirect investments in foreign countries, especially those with tax advantages for foreign investments.
To achieve this objective, the IRS (Internal Revenue Service) will seek the collaboration of foreign financial institutions in this case Colombia and other non-financial foreign entities, who will be required to report information they have about assets owned by US citizens and the respective movements of these investments.
This law is created to provide tax relief and incentives to companies of any size that are being affected by the current economic situation.
If you have been required to file fatca form in Colombia or have any doubt, please contact us.
www.doingbusinessincolombia.com
EMAIL info@doingbusinessincolombia.com
TEL +57-305-461-9162
