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FATCA stands for the Foreign Account Tax Compliance Act. It is a new regulation enacted by the U.S. Government, which will require foreign financial institutions to report specific information on accounts held by U.S. persons to the Internal Revenue Service (IRS). VM Wealth Management Limited is in the advanced stages preparation for the July 1, 2014 implementation.
Foreign Account Tax Compliance Act (FATCA)
What is FATCA?
FATCA stands for the Foreign Account Tax Compliance Act. It is a new regulation enacted by the U.S. Government, which will require foreign financial institutions to report specific information on accounts held by U.S. persons to the Internal Revenue Service (IRS). It aims to prevent U.S. taxpayers from using accounts held outside of the U.S. to evade taxes.
A Foreign Financial Institution (FFI) which does not comply with FATCA may be subjected to a 30% withholding tax on US-sourced payments. In addition, an FFI may be required to withhold 30% on certain payments to foreign payees if such payees fail to comply with FATCA.
What does this mean for Victoria Mutual Wealth Management and our customers?
As a participating FFI, VM Wealth Management intends to meet all obligations imposed under FATCA in accordance with the relevant banking and tax laws. In line with this, we have identified a team within our organisation which will undertake the planning and implementation process, ensuring that we are compliant, while maintaining our usual high standards of customer service.
Our expectation is that FACTA will have little to no impact on most of our customers. However, for those who may be impacted, we will:
- provide detailed information regarding why the customer’s account may be affected
- advise and support the customer with becoming compliant
As we seek to be compliant with FATCA, VM Wealth Management assures our customers that we will ensure the highest levels of security, confidentiality and privacy regarding the collection and use of your personal information. This approach will be observed in our response to FATCA.
When will FATCA become effective?
FATCA will become effective on July 1, 2014.
How will customers be kept informed?
As part of our commitment to keeping our customers informed, we will communicate with you via mail, and will also post updates on our website and other channels as they become available.
Click here to view a list of Frequently Asked Questions.
Visit the IRS website http://www.irs.gov/FATCA
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