.png)
.png)
Two changes to the Foreign Account Tax Compliance Act (FATCA) reporting criteria have been unveiled ahead of the 31 May return deadline.
The first update means UK financial institutions are no longer required to file nil returns – although such a document will still be necessary to make an election where the institution is in a nil position through applying the de minimis $50,000 or $250,000 threshold on pre-existing accounts.
Two changes to the Foreign Account Tax Compliance Act (FATCA) reporting criteria have been unveiled ahead of the 31 May return deadline.
The first update means UK financial institutions are no longer required to file nil returns – although such a document will still be necessary to make an election where the institution is in a nil position through applying the de minimis $50,000 or $250,000 threshold on pre-existing accounts.
Holding companies and treasury companies are no longer defined as financial institutions following the second change, and will not need to report under FATCA. They are now classified as non-financial foreign entities and either are active or passive, depending on activities carried out.
HMRC say they will issue further specific guidance for such entities, which will be incorporated into revised guidance material scheduled to be published later this year.
Organisations that need to submit a FATCA return should register 24 hours before submitting the document.
Read further Revenue guidance.
