A] In General: Fatca
The Foreign Account Tax Compliance Act (FATCA) is a law that was passed in the USA. U.S. Persons are taxed on their worldwide income regardless of where they live.
Fatca aims to combat U.S. tax evasion by U.S. Persons with financial assets outside of the USA. Thus Fatca is meant to encourage proper reporting of all investment income and all dispositions of securities by a U.S. Person no matter where in the world the investment is held.
As of 01-07-’14 non U.S. financial institutions are required to identify, document and report on accounts held by U.S. Persons.
On the basis of this law as well as agreements between the Dutch and American governments, financial institutions must determine whether customers fall under these regulations. These regulations involve customers of Dutch financial institutions being required to provide information to the financial institution.
In practice this means that it is difficult for a U.S. Person to start a new financial product in The Netherlands as many providers do not accept U.S. Persons due to all Fatca related costs.
B] Definition U.S. Person
In general a U.S. Person is someone who is:
- A citizen of the U.S. including individuals who hold U.S. citizenship but reside in another country who has not renounced their U.S. citizenship;
- A resident of the U.S. including U.S. green card holders;
- A non-exempt U.S. Corporation, U.S. Partnership, U.S. Estate or U.S. Trust;
- A person who spends considerable time in the USA in one year or over a period of years.
C] Consultancy: Private/Workplace Pensions & Investments
Even though Fatca has made it much more difficult for a U.S. Person in The Netherlands to get the desired advice and financial solutions, we are still able to provide this in many situations.
Feel free to contact us at:
- Tel : 06-26014112
- Mail : firstname.lastname@example.org