Over the past decade, stringent requirements have been imposed on private equity firms, fund administrators, brokers and other intermediaries.
Chapter 3 is a tax withholding regime that requires withholding on a payment of US source income such as dividends to many non-US persons, including non-resident alien individuals, foreign entities, and governments.
The Foreign Account Tax Compliance Act (FATCA) is designed to prevent US taxpayers from avoiding tax by investing through non-US financial institutions and offshore investment vehicles.
The Organization for Economic Cooperation and Development (OECD) issued a Standard for Automatic Exchange of Financial Account Information (AEOI), using the Common Reporting Standard (CRS). Further increasing the diligence by FIs to identify reportable accounts that will need to be exchanged with other tax authorities.
These regulations significantly increase the complexity and need for obtaining, validating and maintaining complex tax documentation and certification. eClerx Markets and Comply Exchange apply extensive domain knowledge, robust workflows and leading tools to assist with documentation solicitation and management, providing data verification, system remediation, reconciliation, ongoing management and testing services to ensure accurate tax calculation and reporting for Chapter 3, FATCA and AEoI compliance.