On June 4, 2015, a new update was announced for the terms of the Fiscal Compliance Act regarding Foreign Accounts (FATCA). The deadline for the registration and submission of documents before the international tax authority of BVI, (the "BVI Tax Authority") has been extended.
About FATCA
The provisions generally known as the Fiscal Compliance Act Relating to Accounts Abroad (FATCA) were enacted in March 2010. This law focuses on tax noncompliance of taxpayers in the United States of America who have accounts abroad.
FATCA focuses on the presentation of:
- certain financial accounts and assets abroad belonging to taxpayers of the United States of America
- foreign financial institutions with respect to financial accounts held by taxpayers of the United States of America or foreign entities in which taxpayers have a substantial property interest.
The objective of FATCA is to present financial assets abroad; Withholding is the cost that must be paid against the lack of presentation.
The update
i. The deadline to register before the IVB tax authorities was extended until June 30, 2015 (initially the deadline was until June 1, 2015).
ii. The deadline to send a report to the tax authorities in IVB was extended until July 31, 2015 (initially the deadline was until May 31, 2015 and, subsequently, until June 30, 2015).
For the next few years, the deadline for registration will be until April 1 and the deadline for submission will be until May 31 of the corresponding year.
This reminder of the deadlines and the steps to be followed applies to IVB entities that are classified as "Foreign Financial Institutions" with respect to the purposes of FATCA. No action is necessary for IVB entities that do not have this feature.
The presentation must be made through the IVB portal through the IVB Tax Authority, which will share the information with the Treasury Department of the United States of America (IRS, for its acronym in English). The IVB Financial Institutions (RFI) must submit the information to the BVI tax authorities electronically and through the BVI portal.
The BVI portal allows RFIs to submit their FATCA files in financial accounts either by entering the information manually in a form on the BVI portal or by uploading a file in XML format. In either case, the information is validated once presented. The system only accepts files with XML format that are in good condition, as stipulated in the FATCA XML Scheme of the United States.
How can we help?
TMF Group is a global leader in the administration and management of credit worldwide, with more than 6,500 professionals in the areas of accounting and legal administration in more than 80 countries around the world. Our own network of 125 offices allows us to support a wide range of investments and efficient structuring possibilities in several jurisdictions. We have also assisted hundreds of companies to establish themselves, managing taxes and financial structures effectively, with the largest agreements at local and international level for more than 25 years.
TMF Group in the British Virgin Islands has been a pioneer in the financial services industry. The company is regulated and authorized by the Financial Services Commission. Our IVB team has led the area since 1988. Our highly qualified and knowledgeable professionals have several years of experience in the foreign industry. We provide legal services, trusts and real estate planning, accounting, investment funds, support in the management of companies for complex structures and family operations.
Find out about businesses in the British Virgin Islands.
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