FATCA / CRS Complaince

Following the US government’s adoption of the Law on the Taxation of Foreign Accounts (FATCA), which mandates that all foreign financial institutions should sign an agreement on the exchange of information with the IRS. The financial institutions in the UAE have also adopted these new requirements.

European Union produced the Common Reporting Standard, or CRS, which is an analogous FATCA, by using the same model. All residents of the nations included on the AEOI (Automatic Exchange of Information) list are covered by this solution. Financial institutions in the UAE, that have signed the information exchange agreement and joined this list automatically give the tax authorities of the European Union and other nations on this list information about all non-resident accounts and their beneficiaries.

Our team reviews and submits the reporting requirements for the clients under the FATCA and CRS through the Ministry of Finance (MOF) and DIFC portals. We download the XL templates, prepares the data files offline, validates the attributes, and uploads the files in the mandated format.

In adherence to its membership in the Organization for Economic Co-operation and Development (OECD) Inclusive Framework and following an evaluation of its tax framework by the European Union Code of Conduct Group on Business Taxation, the UAE has issued the Economic Substance Regulations. The goal is to prevent the attraction of profits from specific mobile activities without any corresponding economic activity, thereby avoiding harmful tax practices.

As per the regulations, UAE onshore and free zone companies, as well as certain other business forms that conduct specific activities, are required to maintain, and exhibit an adequate “economic presence” in the UAE relative to their activities. The regulations aim to guarantee that UAE entities report actual profits that align with the economic activity carried out within the UAE.

Foreign Account Tax Compliance Act (FATCA)

We specialize in helping organizations understand and fulfill their FATCA filing requirements, ensuring compliance with the law. Our team of experts is well-versed in the intricacies of FATCA regulations, providing tailored solutions to meet your specific needs. Additionally, we offer expertise in Common Reporting Standard (CRS) compliance, ensuring that your organization meets its obligations for the automatic exchange of financial information.

  1. Determining a firm’s classification in accordance with the regulations
  2. Impact assessment involves examining the firm’s systems, products, departments, policies, and procedures, and finding any gaps that must be filled to comply with the requirements.
  3. Supporting the organization to execute its obligations for due diligence
  4. Compliant policy and procedure development
  5. Conducting a thorough investigation to determine whether the organization is adhering to the rules and regulations and its policies and procedures
  6. Review and submission of the report

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