Q&A: The US FATCA regulations have finally landed

Jayne Newton

Jayne Newton highlights practical concerns for clients

On 17 January 2013 the US Treasury Department issued the long awaited Foreign Account Tax Compliance Act (FATCA) Regulations (‘the regulations’; available via www.lexisurl.com/fatcaregs). FATCA will impact every financial institution wherever based.

The regulations

detail the operational aspects of implementing FATCA;
reduce administrative burdens; and
clarify the interaction of the unilateral regulatory regime with the bilateral intergovernmental (IGA) regime.

The headline changes

Withholding: grandfathered date extended for obligations outstanding on 1 January 2014 and for gross proceeds and foreign passthru payments occurring before 1 January 2017.
Covered FFIs: non-professionally managed passive entities now are non-financial foreign entities (NFFEs) not foreign financial institutions (FFIs); scope of depository...

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Jayne Newton highlights practical concerns for clients

The regulations

detail the operational aspects of implementing FATCA;
reduce administrative burdens; and
clarify the interaction of the unilateral regulatory regime with the bilateral intergovernmental (IGA) regime.

The headline changes

Withholding: grandfathered date extended for obligations outstanding on 1 January 2014 and for gross proceeds and foreign passthru payments occurring before 1 January 2017.
Covered FFIs: non-professionally managed passive entities now are non-financial foreign entities (NFFEs) not foreign financial institutions (FFIs); scope of depository...

If you or your firm subscribes to Taxjournal.com, please click the login box below:

If you do not subscribe but are a registered user, please enter your details in the following boxes: