Mexico FATCA Overview – IGA Model 1 Agreement

Mexico FATCA

The Foreign Account Tax Compliance Act (FATCA), which was introduced by the United States Department of Treasury (Treasury) and the US Internal Revenue Service (IRS), aims to report information on the financial assets held by US persons (both individuals and legal entities) to the tax authorities of their resident countries. HubCheck.com is committed to provide a FATCA software solution that will assist in your policies and procedures to help ensure the protection and long-term FATCA compliance.

In Mexico, the principles of FATCA have been brought into the local laws. Due to the inter-governmental agreement (IGA) signed between Mexico and the United States, this will therefore become a local regulation.

In order to establish your tax status under FATCA, your company will need to obtain certain information and documentation. This documentation may include US tax forms or declarations.

We suggest you read the information carefully and select the document that is appropriate for your company.  Your customer will need to send the completed document to your account executive. If you are unsure, please contact your tax advisor, as HubCheck.com is unable to provide tax advice.

Under the FATCA Agreement, Mexico Financial Institutions (MFIs) do not report information directly to the IRS. Instead, they report to the Mexico’s Mexico’s Tax Administration Service (SAT) and the information is made available to the IRS, in compliance with Mexico privacy laws, under existing rules and safeguards in the Mexico-U.S. Convention for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with respect to taxes on income (the Convention).

Here are some key links:

 

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