FATCA definition: Copy, customize, and use instantly
Introduction
The term "FATCA" refers to the Foreign Account Tax Compliance Act, a U.S. law enacted to combat tax evasion by requiring foreign financial institutions (FFIs) and other entities to report information about U.S. account holders. It is essential for ensuring compliance with international tax reporting obligations and fostering transparency in global financial transactions.
Below are various examples of how "FATCA" can be defined in different contexts. Copy the one that fits your needs, customize it, and use it in your contract.
Definition of "FATCA" as a U.S. tax compliance regulation
This definition ties "FATCA" to its role as a tax compliance law targeting foreign financial assets.
"FATCA" means the Foreign Account Tax Compliance Act, a U.S. federal law that requires foreign financial institutions and certain other entities to report information about financial accounts held by U.S. taxpayers or by foreign entities with substantial U.S. ownership.
Definition of "FATCA" as an international reporting standard
This definition connects "FATCA" to its function as a global standard for tax information exchange.
"FATCA" refers to the Foreign Account Tax Compliance Act, which establishes reporting obligations for foreign financial institutions to disclose financial account information related to U.S. persons to the Internal Revenue Service (IRS).
Definition of "FATCA" as a withholding tax mechanism
This definition links "FATCA" to its role in imposing withholding taxes for non-compliance.
"FATCA" means the Foreign Account Tax Compliance Act, which mandates a 30% withholding tax on certain U.S.-sourced payments to foreign financial institutions that fail to comply with reporting requirements.
Definition of "FATCA" as a due diligence framework
This definition applies "FATCA" to its use in requiring financial institutions to perform due diligence on account holders.
"FATCA" refers to the Foreign Account Tax Compliance Act, which obligates financial institutions to conduct due diligence procedures to identify accounts held by U.S. taxpayers or entities with significant U.S. ownership.
Definition of "FATCA" as a compliance and disclosure law
This definition ties "FATCA" to its purpose of fostering transparency in financial disclosures.
"FATCA" means the Foreign Account Tax Compliance Act, aimed at improving tax compliance through the disclosure of foreign financial accounts and assets by U.S. taxpayers and foreign financial institutions.
Definition of "FATCA" as a cross-border tax compliance measure
This definition ties "FATCA" to its role in cross-border tax compliance.
"FATCA" means the Foreign Account Tax Compliance Act, a U.S. law designed to enforce cross-border tax compliance by requiring foreign financial institutions to report information on U.S. account holders to the IRS.
Definition of "FATCA" as a regulatory framework for foreign entities
This definition connects "FATCA" to its applicability to foreign entities.
"FATCA" refers to the Foreign Account Tax Compliance Act, which establishes regulatory requirements for foreign entities, including financial institutions, to disclose financial account data pertaining to U.S. taxpayers.
Definition of "FATCA" as a global tax transparency initiative
This definition links "FATCA" to its purpose in promoting tax transparency.
"FATCA" means the Foreign Account Tax Compliance Act, a U.S.-led initiative to enhance global tax transparency by mandating the reporting of financial account information involving U.S. persons.
Definition of "FATCA" as a withholding mechanism for non-compliance
This definition applies "FATCA" to its enforcement through withholding penalties.
"FATCA" refers to the Foreign Account Tax Compliance Act, which enforces compliance by imposing a 30% withholding tax on certain U.S.-sourced payments made to non-compliant foreign financial institutions.
Definition of "FATCA" as a bilateral agreement framework
This definition ties "FATCA" to its implementation through intergovernmental agreements (IGAs).
"FATCA" means the Foreign Account Tax Compliance Act, implemented through intergovernmental agreements (IGAs) between the U.S. and other countries to facilitate the exchange of tax information.
Definition of "FATCA" as a reporting obligation for U.S. persons
This definition connects "FATCA" to the reporting requirements imposed on U.S. taxpayers.
"FATCA" refers to the Foreign Account Tax Compliance Act, which requires U.S. persons to report their foreign financial accounts and assets exceeding specific thresholds to the IRS.
Definition of "FATCA" as an anti-tax evasion law
This definition links "FATCA" to its objective of combating tax evasion.
"FATCA" means the Foreign Account Tax Compliance Act, enacted to deter tax evasion by U.S. persons through the use of foreign financial accounts and entities.
Definition of "FATCA" as a financial institution compliance requirement
This definition applies "FATCA" to its role in mandating compliance for foreign financial institutions.
"FATCA" refers to the Foreign Account Tax Compliance Act, which obligates foreign financial institutions to register with the IRS and report information on accounts held by U.S. taxpayers or U.S.-owned entities.
Definition of "FATCA" as a global financial governance tool
This definition ties "FATCA" to its influence on global financial governance practices.
"FATCA" means the Foreign Account Tax Compliance Act, a U.S. regulation influencing global financial governance by requiring transparency and reporting on cross-border financial activities involving U.S. taxpayers.
Definition of "FATCA" as a U.S. tax enforcement strategy
This definition connects "FATCA" to its role in enforcing U.S. tax laws internationally.
"FATCA" refers to the Foreign Account Tax Compliance Act, a strategic enforcement tool used by the U.S. government to ensure compliance with tax obligations for foreign financial assets and accounts.
Definition of "FATCA" as an information-sharing mandate
This definition ties "FATCA" to its requirement for sharing account information with the IRS.
"FATCA" means the Foreign Account Tax Compliance Act, which mandates foreign financial institutions to share information on U.S. account holders with the Internal Revenue Service (IRS) to enhance tax compliance.
Definition of "FATCA" as a mechanism for detecting hidden assets
This definition connects "FATCA" to its role in identifying undeclared financial assets.
"FATCA" refers to the Foreign Account Tax Compliance Act, designed to detect hidden financial assets held by U.S. taxpayers in foreign jurisdictions to prevent tax evasion.
Definition of "FATCA" as a tax compliance tool for U.S.-sourced income
This definition links "FATCA" to its focus on income originating from U.S. sources.
"FATCA" means the Foreign Account Tax Compliance Act, which ensures that foreign entities handling U.S.-sourced income comply with reporting and withholding requirements.
Definition of "FATCA" as a compliance obligation for non-financial entities
This definition applies "FATCA" to its requirements for certain non-financial foreign entities (NFFEs).
"FATCA" refers to the Foreign Account Tax Compliance Act, which imposes compliance obligations on non-financial foreign entities to disclose substantial U.S. ownership or face withholding penalties.
Definition of "FATCA" as a deterrent to offshore tax shelters
This definition ties "FATCA" to its goal of discouraging the use of offshore accounts for tax evasion.
"FATCA" means the Foreign Account Tax Compliance Act, which aims to deter the use of offshore accounts and structures as tax shelters by increasing reporting requirements and penalties for non-compliance.
Definition of "FATCA" as a treaty-based enforcement mechanism
This definition connects "FATCA" to its enforcement through international treaties.
"FATCA" refers to the Foreign Account Tax Compliance Act, implemented through treaties and agreements between the U.S. and foreign governments to facilitate enforcement of tax compliance measures.
Definition of "FATCA" as a global standard for financial transparency
This definition links "FATCA" to its influence as a model for international tax transparency initiatives.
"FATCA" means the Foreign Account Tax Compliance Act, which has set a global standard for financial transparency, inspiring similar tax compliance initiatives worldwide.
Definition of "FATCA" as a compliance driver for U.S. citizens abroad
This definition applies "FATCA" to its impact on U.S. citizens living overseas.
"FATCA" refers to the Foreign Account Tax Compliance Act, which compels U.S. citizens living abroad to report their foreign financial accounts and comply with U.S. tax laws.
Definition of "FATCA" as a measure for identifying substantial U.S. ownership
This definition ties "FATCA" to its role in identifying U.S. ownership in foreign entities.
"FATCA" means the Foreign Account Tax Compliance Act, which requires foreign entities to identify and report substantial U.S. ownership or risk withholding penalties.
Definition of "FATCA" as a regulatory tool for financial institutions
This definition connects "FATCA" to its function in regulating financial institutions for tax compliance.
"FATCA" refers to the Foreign Account Tax Compliance Act, a regulatory framework obligating foreign financial institutions to identify and report accounts held by U.S. taxpayers, ensuring adherence to U.S. tax laws.
Definition of "FATCA" as an enforcement tool for financial integrity
This definition ties "FATCA" to its purpose of enforcing financial integrity and accountability.
"FATCA" means the Foreign Account Tax Compliance Act, designed to promote financial integrity by requiring transparency and disclosure of financial accounts held by U.S. taxpayers abroad.
Definition of "FATCA" as a compliance framework for global entities
This definition connects "FATCA" to its role in establishing compliance frameworks for entities with U.S. connections.
"FATCA" refers to the Foreign Account Tax Compliance Act, which provides a compliance framework for foreign entities to report U.S.-related financial accounts and avoid penalties.
Definition of "FATCA" as a measure targeting undisclosed offshore accounts
This definition links "FATCA" to its objective of addressing undisclosed offshore accounts.
"FATCA" means the Foreign Account Tax Compliance Act, aimed at targeting and curbing the use of undisclosed offshore accounts by U.S. taxpayers to evade taxes.
Definition of "FATCA" as a system for reciprocal information exchange
This definition applies "FATCA" to its system of reciprocal information-sharing agreements.
"FATCA" refers to the Foreign Account Tax Compliance Act, which establishes systems for reciprocal information exchange between the U.S. and foreign governments to enforce tax compliance.
Definition of "FATCA" as a withholding mechanism for passive income
This definition ties "FATCA" to its function of imposing withholding taxes on passive U.S.-sourced income.
"FATCA" means the Foreign Account Tax Compliance Act, which imposes withholding taxes on passive income, such as interest or dividends, paid to non-compliant foreign entities.
Definition of "FATCA" as a requirement for entity classification
This definition connects "FATCA" to its requirement for classifying foreign entities for compliance purposes.
"FATCA" refers to the Foreign Account Tax Compliance Act, which mandates the classification of foreign entities as compliant or non-compliant based on their adherence to reporting requirements.
Definition of "FATCA" as a mandate for U.S. expatriate tax compliance
This definition links "FATCA" to its role in ensuring tax compliance among U.S. expatriates.
"FATCA" means the Foreign Account Tax Compliance Act, which enforces tax compliance obligations on U.S. expatriates holding foreign financial accounts or assets.
Definition of "FATCA" as a deterrent to international tax evasion schemes
This definition applies "FATCA" to its use in deterring international tax evasion schemes.
"FATCA" refers to the Foreign Account Tax Compliance Act, which deters international tax evasion by increasing transparency in cross-border financial transactions involving U.S. taxpayers.
Definition of "FATCA" as a standard for financial institution registration
This definition ties "FATCA" to its requirement for foreign financial institution registration with the IRS.
"FATCA" means the Foreign Account Tax Compliance Act, which requires foreign financial institutions to register with the IRS and comply with reporting obligations related to U.S. account holders.
Definition of "FATCA" as a compliance protocol for intergovernmental agreements
This definition connects "FATCA" to its implementation through intergovernmental protocols.
"FATCA" refers to the Foreign Account Tax Compliance Act, implemented through intergovernmental agreements (IGAs) that establish protocols for compliance with U.S. tax reporting requirements.
Definition of "FATCA" as an anti-tax avoidance measure
This definition ties "FATCA" to its purpose of combating tax avoidance.
"FATCA" means the Foreign Account Tax Compliance Act, a U.S. regulation aimed at preventing tax avoidance by requiring foreign institutions to disclose financial accounts held by U.S. taxpayers.
This article contains general legal information and does not contain legal advice. Cobrief is not a law firm or a substitute for an attorney or law firm. The law is complex and changes often. For legal advice, please ask a lawyer.