What is FACTDA?

FATCA (Foreign Account Tax Compliance Act) is a law passed by the United States Congress in March 2010 and effective since July 1, 2014. It aims to combat tax evasion by U.S. taxpayers with financial accounts abroad. The law requires foreign entities to identify U.S. taxpayers who, directly or indirectly, hold financial accounts abroad and report certain information to the Internal Revenue Service (IRS). Non-compliance imposes a 30% tax withholding on certain payments originating from or routed through U.S. correspondents.

"US Persons" are considered:

U.S. citizens, even if they do not reside in the United States.

Individuals with dual nationality (U.S. and another).

Individuals permanently residing in the United States (i.e., Green Card holders).

Individuals who have spent a certain number of days in the United States in recent years, subject to the rules of the "Substantial Presence Test".

Legal entities organized under U.S. laws.

Foreign entities where one or more U.S. Persons hold a capital interest representing 10% or more of the total.

The Substantial Presence Test involves:

• 31 days during the present year, and
• In the 3 previous years (including the present year), a total of 183 days or more, calculated as follows:
  • All days spent in the United States in the current year.
  • 1/3 of the days spent in the United States in the previous year.
  • 1/6 of the days spent in the United States in the second previous year.

Max Capital is registered with the Internal Revenue Service (IRS) of the United States under GIIN number: 3G7ETS.99999.SL.032.

For any further inquiries, please contact your tax advisor or visit the IRS website: www.irs.gov

Resolution General No. 4056 compl. y mod. - AFIP establishes an Information and Due Diligence Regime aimed at Financial Institutions required to report on accounts of Non-Resident Subjects and Entities in Argentina, for the purpose of exchanging such information with tax authorities of other countries, in accordance with the rules established in the "Common Reporting Standard" (CRS).

Financial Institutions must provide, for each calendar year, information regarding accounts owned by one or more reportable persons or a Passive Non-Financial Entity where one or more of the controlling persons are reportable persons.

The term "reportable jurisdiction person" refers to an individual or entity residing in a reportable jurisdiction under the tax legislation of that jurisdiction, or the estate of a decedent resident of a reportable jurisdiction. This includes individuals who obtained residence rights under an investment residence or citizenship scheme. In this regard, an entity, whether an association, a limited liability company, or similar arrangement that lacks tax residency will be considered as resident in the jurisdiction where its effective management is located.

The term "reportable jurisdiction" refers to a jurisdiction: (i) with which there is an agreement in force pursuant to which there is a current obligation to provide information, and (ii) that is identified on a published list.