International Tax Compliance – What is FATCA and CRS?

Several international tax transparency regimes have been developed in recent years with the goal to implement an automatic exchange of financial information in tax matters in order to increase tax transparency, prevent offshore tax evasion and maintain the integrity of global tax systems.

The United States started with the US Foreign Account Tax Compliance Act (US FATCA) which is an initiative to identify US persons that have failed to declare offshore investments who hold offshore accounts through foreign entities. Over 100 jurisdictions have now entered into intergovernmental agreements (IGA) with the US to simplify FATCA reporting, compliance, and to avoid withholding.

Similar to US FATCA, the United Kingdom implemented UK FATCA (or sometimes referred to as CD/OT) which requires entities in the UK Crown Dependencies and Overseas Territories to report detailed information about their UK tax resident investors.

The Commons Reporting Standard is an internationally agreed standard for the automatic exchange of information on financial account information, developed by the OECD and the Global Forum for Transparency and Exchange of Information for Tax Purposes. More than 100 jurisdictions have committed to implement the CRS and start with the automatic exchange of information in either 2017 or 2018.

All three reporting regimes require entities in participating jurisdictions to determine their classification for FATCA/CRS, implement the required policies and procedures with respect to due diligence, registration/notification and reporting obligations. Due to the fact that participating jurisdictions have implemented the regimes into local legislation, an entity in a participating jurisdiction has to comply with local law irrespective of where assets or investors are located.

How can we help?

International tax compliance is now essential to effective fund governance. The DMS International Tax Compliance Group provides customized solutions designed to efficiently meet the FATCA/CRS obligations and responsibilities of our clients. We provide a full suite of FATCA/CRS services designed to effectively manage any material risks and achieve compliance in your jurisdiction:

  • Entity classification of your entities and structures to determine the ITC Obligations and analyzing the availability of reporting exemptions.
  • Registering and obtaining Global Intermediary Identification Number (“GIIN”) from the IRS and completing any other registration or notification with local authorities.
  • Reviewing governing documents and subscription documents to determine the adequacy of disclosures provisions.
  • Preparing and reviewing IRS Forms and Self-Certifications.
  • Preparing and reviewing the policies and procedures as set forth in the Regulations.
  • Acting as Principal Point of Contact/AEOI Delegate/ Responsible Officer to oversee and ensure compliance with all aspects of the regulations in the respective jurisdiction.
  • Reviewing and approving third party investor classification, including relevant agreements with these third parties.
  • Classification and remediation of your investor base.
  • Preparing and filing the reports in the respective jurisdictions.
  • Consulting on technical and operational aspects of these international tax information regulations.
  • Conducting regular FATCA/CRS compliance review.

International tax compliance services


Kevin A. Phillip

Kevin A. Phillip

Executive Director
Jill Mojica

Jill Mojica

Associate Director