Foreign Account Tax Compliance Act (FATCA)
The Foreign Account Tax Compliance Act (FATCA) is US legislation and is intended to increase transparency for the US Internal Revenue Service (IRS) with respect to US persons that may be investing and earning income through non-US financial institutions. It requires complying foreign financial institutions (FFIs) to report information about financial accounts held by US persons either directly to the IRS or via local tax authorities. FATCA aims to prevent tax evasion by enabling the IRS to compare and validate the self-reported information from US persons to the financial account information reported by FFIs.
While the primary goal of FATCA is to gain financial account information about US persons, FATCA imposes 30% withholding penalty tax on certain payments where the applicable documentation and reporting requirements are not met.
ING aims to comply with FATCA in all countries where it is allowed or compulsory with the objective of maintaining a compliant status.