Fri | Sep 22, 2017

FATCA reports due May 31

Published:Friday | April 1, 2016 | 4:00 AM

Tax Administration Jamaica (TAJ) said that all reporting financial institutions are required to submit their foreign account tax-compliant reports for 2015 on or before May 31, 2016.

In addition, financial institutions reporting for the first time are required to notify and provide the TAJ with the name of the institution, their categorisation, the Global Intermediary Identification Number of the institution, as well as the full name, address, designation and contact details of the compliance officer who is the institution's principal point of contact for purposes of the Foreign Account Tax Compliant Act (FATCA) by March 31.

TAJ is the designated central authority to which financial houses will transmit tax-complaint reports, and which, in turn, will report the data to the Internal Revenue Service (IRS).

The United States passed FATCA in 2010, requiring all foreign financial institutions to identify and report on customers who are "specified US persons", whether or not they are the primary account holders, as well as "recalcitrant customers".

The FATCA reporting requirement was introduced in 2014, with the first set of reports submitted to the TAJ in September 2015. In a statement, TAJ said those were in turn transmitted to the IRS in accordance with the Revenue Administration (Amendment) Act and the FATCA intergovernmental agreement.

TAJ said any applicable feedback from the IRS will be subsequently communicated to the financial institutions in question.

The requirements for the 2016 submission, in accordance with the inter-governmental agreement, are as follows: the name, address, United States Tax Identification Number of the account holder, the account number, name and identifying number of the financial institution, the account balance or value, total gross amount of interest, dividends or other income paid or credited to the account.

The TAJ said it portal will be opened this month to facilitate early submission of FATCA reports for calendar year 2015.

The FATCA submission process is facilitated through the TAJ's new revenue administration information system that is accessible through its web portal at www.jamaicatax.gov.jm. TAJ said the system employs industry standard security practices at the database and communication layers.

Reporting financial institutions will be required to upload their FATCA reports through the information system.

Financial institutions are being encouraged to contact TAJ before the May 31 submission deadline for any guidance on FATCA to avoid any last-minute rush.

business@gleanerjm.com