Foreign Account Tax Compliance Act of 2010 (“FATCA”) dramatically changed the compliance landscape and significantly curtailed the ability of US persons to conceal their foreign financial assets and bank accounts and their ability to disregard applicable US tax filing obligations. FATCA also added much more complexity for businesses that derive income from the United States or have US owners. Many non-US companies, including Canadian businesses are required by US withholding agents (payors) to complete and provide IRS Form W-8 or an equivalent, even when technically such form may not be required to be provided. Under the new rules, businesses and individuals need to know how to determine their FATCA classification, what portions of Forms W-8BEN-E, W-8BEN, W-9 (to name a few) they are required to complete, what is the proper nature and source of income characterization, and whether they qualify for the benefits of the Canada-US income tax treaty.
How Can We Help!
We can assist you in determining the applicable FATCA classification for your business and completing or reviewing Form W-8 and its equivalents, in properly characterizing the income you are deriving from the United States (be it the nature of income or its source), registering your business on the IRS FATCA portal and applying for GIIN number, discussing your situation with a US withholding agent and advising them on the applicable tax law in situations where US withholding agents require more than just a completion of Form W-8. We want to help you run your business smoothly and be not hang up on procedural and withholding logistics that may delay the receipt of payments from the United States.