FATCA stands for the Foreign Account Tax Compliance Act. It is a new regulation enacted by the U.S. Government, which will require foreign financial institutions to report specific information on accounts held by U.S. persons to the Internal Revenue Service (IRS). The Victoria Mutual Building Society is in the advanced stages preparation for the July 1, 2014 implementation.
Foreign Account Tax Compliance Act (FATCA)
What is FATCA?
FATCA stands for the Foreign Account Tax Compliance Act. It is a new regulation enacted by the U.S. Government, which will require foreign financial institutions to report specific information on accounts held by U.S. persons to the Internal Revenue Service (IRS). It aims to prevent U.S. taxpayers from using accounts held outside of the U.S. to evade taxes.
A Foreign Financial Institution (FFI) which does not comply with FATCA may be subjected to a 30% withholding tax on U.S. source payments. In addition, an FFI may be required to withhold 30% on certain payments to foreign payees if such payees fail to comply with FATCA.
What does this mean for Victoria Mutual Building Society (VMBS) and our Members and customers?
As a participating FFI, VMBS intends to meet all obligations imposed under FATCA in accordance with the relevant banking and tax laws. In line with this, we have identified a team within our organisation which will undertake the planning and implementation process, to ensure that we are compliant.
Our expectation is that FATCA will have little impact on most of our Members and customers. However, for those who will be affected, we will:
- provide detailed information regarding why the Member’s/customer’s account may be affected
- and support the Member/customer with becoming compliant
As we seek to be compliant with FATCA, VMBS assures our Members and customers that we will maintain the highest levels of security, confidentiality and privacy regarding the collection and use of your personal information.
When will FATCA become effective?
FATCA will become effective on July 1, 2014.
How will Members and customers be kept informed?
As part of our commitment to keeping our Members and customers informed, we will communicate with you via mail, and will also post updates on our website and other channels.
Click here to view a list of Frequently Asked Questions.
Visit the IRS website http://www.irs.gov/FATCA
The Home of Financial Independence