Information reporting and withholding obligations are among the most significant compliance issues facing financial institutions and multinational companies involved in foreign investments and transactional activities.
Under the Foreign Account Tax Compliance Act (FATCA) and the Common Reporting Standard (CRS) for the Automatic Exchange of Information, U.S. withholding agents and foreign financial institutions must have processes in place to gather customer tax documentation and perform required tax reporting.
The rules are complex and can be challenging to navigate without the right people, processes and technology in place. And as regulatory authorities and other stakeholders call for more transparency, businesses need to prove compliance in real time to avoid additional scrutiny, controls and potential tax controversy. While requirements vary by jurisdiction, the risk of noncompliance is costly—including a 30% withholding tax on certain U.S.-sourced payments.
BDO helps you mitigate risk and reduce your reporting burden by providing comprehensive support across the information reporting lifecycle. Leveraging advanced software, we assess client needs, analyze risk, and prepare and file withholding and reporting obligations under U.S. and global regulations. Our team has extensive experience streamlining the validation and management of Forms W-8, W-9, and self-certification, FATCA reporting, withholding rate calculations, and different types of information reporting requirements.
