FI Or HCTA

Financial Institution (FI) include, but are not limited to:

  • Depository institutions (for example, banks)
  • Custodial institutions (for example, mutual funds)
  • Investment entities (for example, hedge funds or private equity funds)
  • Certain types of insurance companies that have cash value products or annuities

An HCTA (Host Country Tax Authority) is:

  • Model 1 IGA: The partner jurisdiction agrees to report to the IRS specified information about the U.S. accounts maintained by all relevant FFIs located in the jurisdiction.
  • Model 2 IGA: The partner jurisdiction agrees to direct and enable all relevant FFIs located in the jurisdiction to report specified information about their U.S. accounts directly to the IRS.
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