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FATCA and Living in Guatemala, Will It Effect You?

Article Summary:

If you are a resident of Guatemala and have plans to travel or visa and were in the United States for more than 183 days in 2012 and for more than 183 days the last three years, that qualifies as a resident for tax purposes and is subject to the tax laws of worldwide income, i.e., you will have to declare the income earned in U.S. as obtained in other countries.

Photo Credit: El Periodico

Original Article Text From Prensa Libre via Google Translate :

Tax and Legal Alert: FATCA and the 183-day test

he opening words are directly related to the publication that I called “The Bank Secrecy against FATCA”, which aims to inform and warn about the importance of knowing the scope of the legislation passed by the U.S. Congress. UU., In March 2010, called “Foreign Account Tax Compliance Act” (FATCA), which is an important part of the legislation “Hiring Incentives to Restore Employmen Act” and its regulations issued in February 2012. Significantly FATCA will take effect on January 1, 2013, which will represent meet certain formal requirements and / or substantial, but not to observe the requirements of FATCA could be penalized economic and noneconomic.

The 183 days test is also known as “Principle of Substantial Presence” which rebutted. This principle is used in Article 4 of the Model Tax Convention of the United Nations Organization (UNO) and Article 4 of the Model Tax Convention on Income of the Organization for Economic Cooperation and Development (OECD), which clarifies what we know center of vital interests, place of effective management, among others.

The formula for calculating the 183-day test is as follows:

In the example above, a Guatemalan your situation matches the data in the table will be considered a resident for purposes of income tax for 2012 under U.S. law. UU. Of course there are exceptions in the calculation of the 183 days: a) When a person is in transit for less than 24 hours because travel to other countries other than U.S.. UU. b) The days of stay in the U.S.. UU. by medical treatment or an unanticipated problem, c) As a temporary student carrying a visa, etc. FATCA compliance has caused are being amended certain forms for individuals or corporations both foreign, that have investments in EE. UU., Within which is the form “W-8BEN Certificate of Foreign Status of Beneficial Owner for United States Tax Withholding,” which is required by law to enjoy certain tax benefits. This form is in the process of being split in two, the first W-8BEN for individuals and W-8BEN-E for legal persons. One of the changes to the forms consist of both individuals and corporations must provide a tax identification number for your country.

With the signing of agreements for the exchange of financial information and U.S. tax authorities. UU. shall be entitled to provide certain information to the authorities of other countries with which such agreements signed. In accordance with Article 3, paragraph n) of the Organic Law of the Superintendency of Tax Administration Decree no. 1-98 of Congress and its amendments, the SAT has specific powers to promote the conclusion of treaties and international agreements for the exchange of information and cooperation in customs and tax, preserving confidentiality guarantees contained in Article 24 of our Constitution and Article 44 of Decree 1-98 of Congress.

It is advisable to make a forum to discuss the scope and effects of legal, economic and other evidence which has FATCA to Guatemala and the region, in order to address findings and strategic recommendations, the leading share of the authorities of the Superintendency of Banks, Tax Authority, Banking Association of Guatemala and independent experts. I leave you with the quote of the day: “Innovation is what distinguishes a leader of others”, Steve Jobs.

It explains to readers that this article was published a week ago, and now the author added the respective test.

Link to Original Article:

From Prensa Libre

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