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testsandeep
Member

FATCA Compliance

I work as freelancer from India. Should I be FATCA compliant. My bank (in India) is asking for FATCA compilance. I searched web for information on it could understand any thing. Had anyone not in USA has faced such a situation. 

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vladag
Community Manager
Community Manager

Hi Sandeep,

 

I'd suggest asking your bank for clarification and checking with a local tax advisor or accountant.

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vladag
Community Manager
Community Manager

Hi Sandeep,

 

I'd suggest asking your bank for clarification and checking with a local tax advisor or accountant.

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Here's how I see it:

 

India is India.

Upwork is Upwork.

The United States is the United States.

Peru is Peru.

 

When in India, obey India's laws and regulations.

When on Upwork, obey Upwork's laws and regulations.

Etc.

 

India has no obligation to write into its laws and bylines any recognition of or complicance with Upwork.

Upwork has no obligation to write into its laws and bylines any recognition of or complicance with India.

 

India WANTS its citizens to earn money using Upwork. India is NOT going to block this U.S.-based company from providing revenue to its citizens and thus enhancing their country's economy, all with no investment of their own.

 

Accountants and tax professionals within India can tell you how to comply with Indian tax law. Upwork representatives will tell you how to comply with Upwork rules. Upwork representatives are not going to tell you how to comply with Indian law.


If, at some point, any country decides that they don't want Upwork in their country, they can block it through national ISPs or they can simpy ask Upwork to stop doing business with their country. Upwork will comply.

Thanks for the answers. 

Sandeep, 

 

FATCA is basically a requirement by US tax authorities for --

  • Its citizens living elsewhere/owning assets in other countries or
  • Foreign businesses having assests, investments or branches in the US.

You don't have to bother about FATCA compliance, if you've --

  • Never been a resident/citizen of the US or Non-resident Indian
  • Don't hold taxable/disclosable investments in US
  • Have no signing authority or monetary stake in US financial accounts
  • Aren't currently working in US and not disclosing US income

How should I know and why should you take my word for it?

 

Although I no longer work in the audit and tax field, I keep myself updated on the latest details as I blog about personal finance and taxes. I recently wrote a detailed guide on FATCA for a client.

 

Hope this helps you address your bank's request.

 

Best, 

Rekha

shsoufy
Member

Hi Sandeep, what did you do eventually ?