FATCA Extends to Corporations

This new measure will be taken to comply with the Foreign Account Tax Compliance Law (FATCA, for short), which requires information disclosure by companies where a U.S. citizen is involved.

In addition, banks who hold deposits belonging to North American clients must also report to the Internal Revenue Service (IRS), and entities that do not will be subject to a retention of 30% on the interest and dividends generated.

An article in Nacion.com states: "compliance with measure is optional for financial institutions, but Elias Solely, chairman of the Committee on Legal Affairs for the American-Costa Rican Chamber of Commerce, said that the need for and interest in maintaining relations with U.S will mean many of them will abide by the policy "without further objection."

Transfer of information must start from 1. July 2013, however, banks and the IRS have already started the training process. "

Source: Nacion.com

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