FATCA and CRS Compliance
Stay compliant with global tax regulations using FATCA and CRS Compliance services, ensuring accurate reporting and reduced financial risks
Ensuring Global Tax Transparency for Your Business
In today’s increasingly interconnected world, ensuring compliance with global tax reporting standards is critical for businesses operating across borders. The Foreign Account Tax Compliance Act (FATCA) and Common Reporting Standard (CRS) are two key international frameworks that enforce transparency in financial reporting and prevent tax evasion. At Stratify Consulting, we provide comprehensive FATCA and CRS compliance services to help businesses navigate these complex regulations and avoid penalties for non-compliance.
What is FATCA?
The Foreign Account Tax Compliance Act (FATCA) is a U.S. regulation designed to prevent tax evasion by U.S. citizens and residents who hold financial assets outside the United States. FATCA requires financial institutions globally to report the financial accounts held by U.S. taxpayers to the U.S. Internal Revenue Service (IRS).
Failure to comply with FATCA can result in significant penalties, including withholding taxes on U.S.-sourced payments.
What is CRS ?
The Common Reporting Standard (CRS) is a global initiative developed by the Organisation for Economic Co-operation and Development (OECD) to combat tax evasion. Under CRS, financial institutions are required to report information about financial accounts held by non-residents to their local tax authorities, which then exchange this information with the tax authorities of the account holders’ home countries.
CRS involves over 100 participating jurisdictions, making it a global standard for automatic exchange of information (AEOI) aimed at improving tax transparency
The Process of FATCA and CRS Compliance
Our comprehensive approach to FATCA and CRS compliance includes the following steps
Initial Consultation
We begin with a detailed consultation to understand your business’s operations, client base, and regulatory obligations.
Data Review and Analysis
We conduct a review of your existing client data to determine which accounts fall under FATCA or CRS regulations
Gap Analysis
A thorough gap analysis helps identify any shortcomings in your current compliance processes
Compliance Implementation
We implement the necessary changes to your systems, processes, and policies to ensure compliance with FATCA and CRS.
Ongoing Support
After compliance has been established, we offer ongoing monitoring, training, and updates to ensure you remain compliant with any new regulatory developments.
Required Documents for FATCA and CRS Compliance
Client Account Information
Details of account holders, including tax residency information and financial account details.
W-8 and W-9 Forms (for FATCA)
U.S. taxpayers must submit these forms to verify their tax status
Self-Certification Forms (for CRS)
These forms are used to collect tax residency information for CRS purposes
Why FATCA and CRS Compliance Matters
Avoiding Penalties
Non-compliance with FATCA or CRS can lead to severe financial penalties, including withholding taxes, fines, and reputational damage
Maintaining Global Integrity
FATCA and CRS are designed to foster transparency and ensure tax fairness across international borders. Compliance helps businesses maintain their global reputation and integrity
Building Trust with Clients
Clients expect their financial institutions to comply with international tax laws. Demonstrating compliance with FATCA and CRS strengthens trust between your business and its clients
Enhancing Operational Efficiency
Implementing robust FATCA and CRS compliance processes helps streamline tax reporting and ensures that your business is well-prepared for regulatory audits
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Our Services
Stratify Corporate services is an independent and international organisation with a specialization in crafting sustainable solutions and strategies
Value Added Tax
Ensure full compliance with UAE’s Value Added Tax regulations through tailored advisory, registration, filing, and VAT health check services.
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Corporate Tax
Navigate UAE’s corporate tax landscape with strategic tax planning, filing, and compliance support to optimize your tax position.
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Excise Tax
We assist businesses in understanding and complying with excise tax regulations, including registration, filing, and audit preparation.
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Accounting Outsourcing
Streamline your financial operations by outsourcing your accounting needs, from bookkeeping to financial reporting, for efficient management.
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Customs
Simplify import-export procedures and ensure compliance with UAE Customs regulations through advisory, registration, and customs reconciliation services.
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Company Formation
Start your business in the UAE with expert guidance on company incorporation, licensing, and compliance with local regulations.
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Audit & Assurance
Our audit and assurance services provide reliable financial insights, ensuring transparency and compliance with regulatory requirements.
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Economic Substance
Anti-Money Laundering
Protect your business by staying compliant with UAE’s AML regulations, with risk assessments, monitoring, and reporting solutions.
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Frequently Asked Questions
What is the main difference between FATCA and CRS?
FATCA is a U.S. regulation that focuses on U.S. taxpayers with foreign accounts, while CRS is a global standard for automatic exchange of information between tax authorities, involving multiple countries.
Who is responsible for complying with FATCA and CRS?
Financial institutions, such as banks, investment funds, and insurance companies, are primarily responsible for ensuring FATCA and CRS compliance
What happens if my business fails to comply with FATCA or CRS?
Non-compliance can lead to penalties, including withholding taxes on U.S. source payments (for FATCA) and financial sanctions or fines from local tax authorities (for CRS).
How often do I need to report under FATCA and CRS?
Reporting is generally required on an annual basis, with specific deadlines determined by the tax authorities in your jurisdiction.
Can Stratify help if my business is not yet compliant with FATCA or CRS?
Yes, we provide comprehensive support to help businesses achieve compliance, including gap analysis, data collection, and reporting services.
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Get Expert Assistance for FATCA and CRS Compliance
At Stratify Consulting, we are committed to helping businesses navigate the complexities of FATCA and CRS compliance. Our tailored solutions ensure that your business meets all regulatory requirements while maintaining operational efficiency. Contact us today to learn more about how we can support your FATCA and CRS compliance efforts
