What is FATCA?

What is FATCA?

FATCA stands for the Foreign Account Tax Compliance Act. It is a new piece of legislation to help counter tax evasion in the US. Introduced in 2010 by the United States Department of Treasury (Treasury) and the US Internal Revenue Service (IRS), the purpose of FATCA is to encourage better tax compliance by preventing US persons from using banks and other financial organisations to avoid US taxation on their income and assets.

FATCA promotes cross-border tax compliance by implementing an international standard for the automatic exchange of information related to US taxpayers. FATCA regulations require tax authorities to obtain detailed account information for US taxpayers on an annual basis.

    • Related Articles

    • Can an LLP (Limited Liability Partnership) open an account at FYERS?

      Absolutely, FYERS welcomes LLP entities to open accounts with us. However, please be aware that the process for opening an LLP account is conducted offline. Here's a breakdown of the essential steps and documents required for a successful LLP account ...
    • Can NRIs open an account with FYERS?

      Yes, Non-Resident Indians (NRIs) can open an account with FYERS through a simplified onboarding process that complies with FEMA and SEBI regulations. FYERS supports NRO Non-PIS accounts, allowing NRIs to trade in the Indian equity market using their ...