Tax Regime
Overview
Verify the identity and official status of individuals or entities by leveraging government databases and authoritative sources within the Latin American region. This API-based approach enhances efficiency, speed, and accuracy in the verification process.
Availability
Tax Regime is currently available in:
Benefits
Proof of National Identity
Tax regime information, such as tax identification numbers (TINs), can serve as proof of an individual’s legal residency or citizenship. This is critical for verifying a person's status in a specific country, especially in cross-border transactions or services that require residency validation.
Prevents Identity Fraud
Verifying a person’s tax information (e.g., tax ID number) helps prevent identity fraud by ensuring that the individual has a legitimate financial profile within the tax system. Fraudsters are less likely to be able to falsify or replicate legitimate tax records, as tax agencies maintain strict verification processes.
FATCA and CRS Compliance
For global financial institutions, verifying a customer’s tax residency and tax information is essential for complying with regulations such as the Foreign Account Tax Compliance Act (FATCA) and the Common Reporting Standard (CRS). These regulations require banks to report the tax residency and financial accounts of customers to tax authorities, making tax verification crucial for regulatory adherence.
Verification of Tax Compliance
By using tax regime information in IDV, businesses can verify whether an individual or company is compliant with tax regulations in their country of residence. This can help identify and prevent individuals from using fraudulent identities to evade taxes.
Cross-Border Tax Reporting
For businesses involved in international financial transactions, tax regime information can help ensure that the individual is not exploiting gaps in tax reporting systems (e.g., through offshore tax havens or undeclared assets).