How to complete FATCA in the LP KYC task
The Foreign Account Tax Compliance Act (FATCA) is a U.S. federal law that requires foreign financial institutions and certain other non-financial foreign entities to report on financial assets held by certain U.S. taxpayers, or be subject to withholding on withhold-able payments.
Carta offers a FATCA compliance product for international clients that includes collecting information via the in-app investor identity verification process. The information is used to identify and generate submission files (i.e. FATCA XMLs) to support fund entities with annual FATCA reporting obligations.
Your identity verification task includes up to three tax compliance sections:
U.S. persons — shown to all investors (individuals and institutions). Asks whether you qualify as a U.S. Person or Specified U.S. Person under FATCA.
FATCA — shown to institutional investors only, and only when U.S. Person = No. Asks about your status as a Foreign Financial Institution (FFI) or Non-Financial Foreign Entity (NFFE).
CRS — shown to institutional investors once the U.S. Person question has been answered. Covers Common Reporting Standard reporting.
This article covers the U.S. persons and FATCA sections. Use the tabs below to find guidance for your investor type.