CRS and FATCA Reporting pages on DIFC Portal are now open till June 30th, 2020
DIFC Firms are required to complete their annual reporting obligations under the United States (U.S.) Foreign Account Tax Compliance Act (FATCA), if applicable and the Common Reporting Standard (CRS). Certain non-regulated entities may also have such reporting obligations.
Reportable accounts maintained by the following entities are to be identified by conducting prescribed due diligence measures after a thorough understanding of various defined terms.
Foreign Account Tax Compliance Act (FATCA)
FATCA is a U.S. legislation. The intent behind the law is for Foreign Financial Institutions (FFIs), i.e. non-U.S. financial institutions to identify and report U.S. persons that hold assets abroad to the Internal Revenue Service (IRS). Reporting is through DIFC portal as part of implementation of IGA between UAE and the USA.
FATCA classifies foreign entities broadly under two categories-
A thorough understanding of FATCA definitions, and how to apply them, is critical to meeting reporting obligations.
Common Reporting Standard (CRS)
DIFC Common Reporting Standard Law has come into force with effect from 21st March 2018. This Law applies to-
Reporting Financial Institutions include -
This Law applies retrospectively to:
Errors or non compliance may have regulatory consequences
FATCA: Non-compliance will be subjected to penalty of full withholding of 30% on with holdable payment.
CRS: Non-compliance may lead to fines from USD 7,000 to USD 70,000.
The Authority may order a Reporting Financial Institution to:
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