Foreign Account Tax Compliance Act (FATCA)

The Foreign Account Tax Compliance Act (FATCA) is a controversial and unpopular piece of legislation, but the US government deems it necessary in order to ensure that its ability to determine the ownership of US assets in foreign accounts is not hindered. Through enhanced reporting requirements, FATCA is designed to combat tax evasion that the government believes is the result of the use of offshore accounts by US taxpayers.


This course will provide you with a detailed overview of the Act, including two major elements of the legislation – the requirements that must be satisfied for foreign entities to avoid withholding taxes and the requirements that US taxpayers must satisfy.


    On completion of this course, you will be able to:

    Define important FATCA-related terms and concepts

    Describe the requirements that must be satisfied to avoid withholding taxes, including exceptions and exemptions

    Outline the registration process that foreign financial institutions (FFIs) must follow

    Describe the reporting requirement that US taxpayers must satisfy

    Define “passthru” payments and explain why such payments face a withholding tax

    Explain the need for multilateral agreements into which the US Department of the Treasury has entered into with other countries


    Topic 1: Key Definitions

    • Financial Institution

    • Foreign Financial Institution (FFI)

    • Nonfinancial Foreign Entity (NFFE)

    • Financial Account

    • Specified US Person

    • US- Owned Foreign Entity

    • Substantial US Owner

    • US Account

    • Withholdable Payment

    • Withholding Agent

    • Passthru Payment

    Topic 2: Requirements for Avoiding Withholding Taxes

    • Requirements for FFIs

    o Participating FFIs

    • Terms That Participating FFIs Must Comply With

    o Account and Account Holder Information

    o Waivers from Non-US Jurisdictions

    o Passthru Payments and ‘Withheld Upon’ Provision

    • Requirements for NFFEs

    • Exceptions and Exemptions

    o Exempt Beneficial Owners

    o Excepted FFIs

    o Deemed-Compliant FFIs

    • Registered Deemed-Compliant FFIs

    • Certified Deemed-Compliant FFIs

    • Owner-Documented FFIs

    • FFIs Subject to Same Reporting Requirements as US Financial Institutions

    Topic 3: Registration Process for FFIs

    • Selection of Responsible Offer (RO)

    • Selection of Points of Contact (POCs)

    • Delegation of Role to an Authorized Third Party (ATP)

    • Obtaining a FATCA Individual Identification Number (FIIN)

    Topic 4: Reporting Requirements for US Taxpayers

    • Foreign Financial Assets

    • Value of Foreign Financial Asses

    • Required Information

    • Penalties

    Topic 5: Implementation of FATCA

    • Implementation Issues

    o Calculation of Passthru Payments

    o Multilateral Agreements with Other Countries



    60 Minutes

Next Course





General: info@intuition.com

Accounts: ar@intuition.com


Intuition engages with over 30 accreditation bodies to ensure Know-How can be used for CPE credits. If your organization needs CPE from a body not listed below, contact us and we will endeavour to have them included.

© Copyright 2016 by Intuition. All Rights Reserved.