What is FATCA?
FATCA, the Foreign Account Tax Compliance Act, is legislation enacted by the United States government to combat tax evasion by U.S. citizens or residents holding financial assets outside the country. Its primary goal is to promote transparency and increase tax compliance.
What does FATCA mean for a person opening a bank account in Japan?
When opening a bank account in Japan, the bank, as a foreign financial institution, will usually ask you to declare whether FATCA applies to you. This declaration is part of the bank's own compliance with FATCA.
If you are a U.S. person for tax purposes (a U.S. citizen or resident, a U.S. corporation, partnership, estate, or trust), FATCA will likely apply to you.
If you are not a U.S. person, and you do not own any foreign entity where U.S. persons have substantial ownership, FATCA may not apply to you.
How to confirm if FATCA applies to me or not?
If you are uncertain about whether FATCA applies to you, it is recommended to consult with a tax professional or legal advisor. You may also find further information from the Internal Revenue Service (IRS) on their official FATCA webpage.
I confirmed that FATCA doesn't apply to me. How do I proceed?
If you have determined that FATCA does not apply to you, you can make that declaration (toggle the button) during the account opening process in Japan.
Please remember, it's essential to make sure your situation is accurately represented, as providing incorrect information may lead to penalties or account suspension.
Remember, FATCA regulations can be complex and it's important to seek advice if you're unsure. Always consider consulting with a professional who understands the complexities of FATCA and can provide guidance based on your individual circumstances.