FATCA publications

Recent

Ireland
FATCA
Updated guidance notes for the implementation of FATCA in Ireland released
On October 1 2014, the Irish Revenue Commissioners released updated Guidance Notes on the implementation of FATCA in Ireland.
Brazil
FATCA
Brazil and the US sign FATCA intergovernmental agreement
Brazil and the United States announced on September 23, 2014 that they have signed an intergovernmental agreement (IGA) to improve international tax compliance and to implement the Foreign Account Tax Compliance Act (FATCA).
Guidance
FATCA reporting of US source insurance premiums not required in certain circumstances
Recently released instructions to the 2014 Form 1042-S clarify FATCA reporting requirements for US premiums. According to the instructions, US premiums subject to the Federal Excise Tax are not reportable so long as FATCA withholding is not applied or required to be applied. However, a failure to properly document the payee’s status introduces both withholding and reporting risk to the payor who fails to obtain the appropriate documentation from payees.
UK FATCA
The interaction of US FATCA and UK CDOT poses unique challenges
There are areas where it was not appropriate for UK CDOT to exactly mirror US FATCA due to differences in context.
Guidance
IRS releases updated QI agreement providing guidance for QIs under FATCA and Chapter 3
On June 27 2014, the IRS released Revenue Procedure 2014-39 which provides guidance on the reporting, withholding, account documentation and registration requirements for a non-US intermediary entering into or renewing a qualified intermediary (QI) agreement.
Nonfinancial MNCs
United States: How do the latest information reporting requirements impact your nonfinancial multinational company? (Part 2)
This is the latest in our series of Tax Insights describing some of the significant items in the regulations impacting nonfinancial MNCs.

Guidance
US Treasury and IRS provide good faith transitional relief under FATCA
On May 2, 2014, the Treasury and the IRS announced in Notice 2014-33 that calendar years 2014 and 2015 will be regarded as a transition period for purposes of IRS enforcement and administration with respect to the implementation of FATCA.

Guidance
US provides FATCA relief with expansion of intergovernmental agreements in effect and additional 10 days to register
With 89 days until many of the provisions of FATCA take effect, a number of FFIs resident or organized in 20 different jurisdictions have been provided temporary IGA FFI status until December 31, 2014.

Guidance
IRS releases draft ‘FFI agreement’ under FATCA and related guidance: Long awaited piece of the puzzle contains surprising twists
The IRS issued Notice 2013-69 addressing FFI agreements and related issues under FATCA and accompanying regulations.

Guidance
PwC formatted version of temporary & final FATCA regulations
PwC has updated its formatted version of the FATCA regulations to include the changes released by the US Treasury on 6 March 2014.

Focus

Nonfinancial MNCs
United States: How do the latest information reporting requirements impact your nonfinancial multinational company? (Part 1)
Nonfinancial MNCs that were in compliance with existing tax reporting and withholding requirements are discovering they have many new responsibilities and requirements as a result of the modifications to the regulations.

Asset Management
How does the recent FATCA guidance affect asset managers?
Asset managers who have already begun their FATCA implementation activities should find these changes provide some welcomed relief and clarification.

Insurance
IRS adopts comments from insurers in new FATCA regulations - how will the new rules impact your compliance plans?
Insurers should quickly assess changes and incorporate any necessary adjustments into their FATCA implementation plans before the approaching FATCA effective dates.

Guidance
With only four months to go, do you know the impact of the latest FATCA guidance?
Treasury and the IRS recently released FATCA amendments and coordinating regulations.

Service Providers
FATCA: A perspective on service providers
This paper explores how FATCA’s requirements may impact the relationship between companies and their service providers, and discusses how service providers can work with their clients to understand their FATCA related needs and prepare to provide information to enable their clients to certify FATCA compliance.

Common Reporting Standard
OECD publishes Common Reporting Standard documents
The OECD recently released the Common Reporting Standard to establish a new global standard for automatic exchange of financial account information.

FATCA Regulations

Guidance
IRS releases updated QI agreement providing guidance for QIs under FATCA and Chapter 3
On June 27 2014, the IRS released Revenue Procedure 2014-39 which provides guidance on the reporting, withholding, account documentation and registration requirements for a non-US intermediary entering into or renewing a qualified intermediary (QI) agreement.

Guidance
US provides FATCA relief with expansion of intergovernmental agreements in effect and additional 10 days to register
With 89 days until many of the provisions of FATCA take effect, a number of FFIs resident or organized in 20 different jurisdictions have been provided temporary IGA FFI status until December 31, 2014.

Guidance
With only four months to go, do you know the impact of the latest FATCA guidance?
Treasury and the IRS recently released FATCA amendments and coordinating regulations.

Guidance
IRS releases draft ‘FFI agreement’ under FATCA and related guidance: Long awaited piece of the puzzle contains surprising twists
The IRS issued Notice 2013-69 addressing FFI agreements and related issues under FATCA and accompanying regulations.

Guidance
IRS amendments clarify and correct FATCA regulations: Do any of the changes affect your compliance plan?
The Internal Revenue Service (IRS) on September 10 issued correcting amendments to the final Foreign Account Tax Compliance Act (FATCA) regulations released in January. This Newsbrief describes key changes contained in the technical correction and provides observations.

Guidance
Final Foreign Account Tax Compliance Act (FATCA) regulations issued: Let the compliance begin
Stakeholders patiently waiting for guidance regarding the Foreign Account Tax Compliance Act (FATCA) need not wait any longer final regulations were issued on January 17, 2013. This Newsbrief describes at a high-level some of the notable distinctions between the proposed and final regulations as well as some essential and necessary actions for stakeholders to think about.

Focus

Nonfinancial MNCs
United States: How do the latest information reporting requirements impact your nonfinancial multinational company? (Part 1)
Nonfinancial MNCs that were in compliance with existing tax reporting and withholding requirements are discovering they have many new responsibilities and requirements as a result of the modifications to the regulations.

Nonfinancial MNCs
The widespread reach of FATCA: How will it affect your business?
FATCA’s application to financial institutions is immediately evident and has prompted the industry to action as it prepares to be compliant. However, less understood have been the potential implications of FATCA on nonfinancial multinational corporations. This paper explores its impact and the path forward for nonfinancial multinational businesses.

Asset Management
How do the final FATCA regulations affect asset managers?
The Treasury and the IRS released their guidance on FATCA for the asset management industry, with a compliance deadline of January 2014.

Asset Management
How does the recent FATCA guidance affect asset managers?
Asset managers who have already begun their FATCA implementation activities should find these changes provide some welcomed relief and clarification.

Insurance
IRS adopts comments from insurers in new FATCA regulations - how will the new rules impact your compliance plans?
Insurers should quickly assess changes and incorporate any necessary adjustments into their FATCA implementation plans before the approaching FATCA effective dates.

Insurance
Applying FATCA to captive insurance arrangements: Surprising results may occur
In this Newsbrief, we take a closer look at the potential impact of FATCA on the global captive insurance market.

Insurance
How do the final FATCA regulations impact insurers?
PwC released an earlier Newsbrief on January 18, 2013 highlighting many of the distinctions between the proposed regulations and final regulations, which potentially apply to all industries. To supplement the earlier Newsbrief, this Newsbrief describes the most notable differences between the proposed and final FATCA regulations that will impact insurers.

Service Providers
FATCA: A perspective on service providers
This paper explores how FATCA’s requirements may impact the relationship between companies and their service providers, and discusses how service providers can work with their clients to understand their FATCA related needs and prepare to provide information to enable their clients to certify FATCA compliance.

Controls
Taking control of FATCA: Building effective internal controls and processes to promote compliance and certification
Ensuring that controls are effectively implemented, monitored, and maintained as part of an overall FATCA compliance program is a daunting task for impacted institutions. This new whitepaper from PwC's Global Information Reporting practice expands on an earlier paper released in the winter of 2013 and explores strategies for developing an effective governance, compliance, and controls framework.

FFI Registration

Registration
IRS opens FATCA online registration system to provide a beneficial user testing period
The Internal Revenue Service (IRS) announced the opening of the Foreign Account Tax Compliance Act (FATCA) registration system on August 19, 2013. This Global IRW Newsbrief provides background information, important deadlines, key observations, and next steps.

Registration
IRS releases draft FATCA registration forms and additional information regarding FFI lists
The IRS released draft Form 8957, FATCA Registration, for public review and comment on April 5, 2013. Form 8957, when issued in final form, may be used by foreign financial institutions (FFIs) to register for FATCA purposes. In the IRS release of the draft Form 8957, the IRS reiterated its intention to utilize an on-line registration portal (Portal) for FATCA registration. The Portal is expected to be available in July of this year.

CRS

Global Information Reporting - OECD publishes long anticipated Commentary on Common Reporting Standard
The Organisation of Economic Cooperation and Development (OECD) on July 21, 2014 released the Standard for Automatic Exchange of Financial Account Information in Tax Matters, including the Commentary on the Common Reporting Standard (CRS).

OECD publishes Common Reporting Standard documents
The OECD recently released the Common Reporting Standard to establish a new global standard for automatic exchange of financial account information.

Soon to be released 'Common Reporting Standard' promises new FATCA-type obligations around the world
The starting date for various obligations under FATCA is July 1, 2014. Even before this date, another significant milestone is set to occur - the release of the Common Reporting Standard (CRS) in February 2014 by the Organisation for Economic Co-operation and Development (OECD).

European Commission seeks to expand automatic information exchange between EU Member States
In this Newsbrief, we explore the effects of the European Commission’s proposed amendments to the automatic exchange of information (“AEOI”) between EU Member States on “dividends, capital gains, all other financial income and account balances”.

UK FATCA

The interaction of US FATCA and UK CDOT poses unique challenges
There are areas where it was not appropriate for UK CDOT to exactly mirror US FATCA due to differences in context.

HM Treasury and HMRC present UK/US regulations to implement FATCA
On June 9, 2014, HM Treasury and HM Revenue and Customs (HMRC) presented the International Tax Compliance (United States of America) Regulations 2014 (UK Regulations) to the House of Commons.

UK and Isle of Man sign agreement based on FATCA to share tax information
On October 11, 2013 the Chancellor announced that the UK and Isle of Man had signed an automatic tax information exchange agreement based on FATCA (the US Foreign Account Tax Compliance Act). This Newsbrief provides an update and background information on the agreement.

Guidance

PwC formatted version of temporary & final FATCA regulations
PwC has updated its formatted version of the FATCA regulations to include the changes released by the US Treasury on 6 March 2014.

IRS Revenue Procedure 2014-13, FFI Agreement for Participating FFI and Reporting Model 2 FFI in an easy to read format
This document is a formatted version of IRS Revenue Procedure 2014-13, FFI Agreement for Participating FFI and Reporting Model 2 FFI.

Forms

IRS issues instructions for Form W-8BEN-E enabling foreign entities to comply with FATCA
The instructions to Form W-8BEN-E provide clarification and relevant definitions in regard to the requirements for documenting and certifying a non-US entity’s status, which is essential for compliance with FATCA and other information reporting and withholding requirements

Draft FATCA-related IRS forms: A snapshot of those released so far
Preparation for compliance with FATCA is well underway and a key element will be the various forms used to communicate between withholding agents, their payees, and the Internal Revenue Service. This Newsbrief provides an overview of recently released drafts of certain FATCA-related forms.

IRS releases new Form W-9 and Instructions for the Requester of Form W-9
On August 29, 2013, the IRS released a new Form W-9, Request for Taxpayer Identification Number and Certification and its instructions. The Form W-9 is one of several forms being revised to conform to the provisions of FATCA. This Newsbrief provides an overview and key observations of the new Form W-9.

IRS Chief Counsel issues memorandum regarding a withholding agent's ability to rely on e-mailed or faxed Forms W-8
The Internal Revenue Service Office of Associate Chief Counsel recently responded to a request for assistance regarding Form W-8 when signed with a handwritten signature and electronically transmitted to a withholding agent.

Reference

The text of the final Foreign Account Tax Compliance Act (FATCA) regulations in an easy to read format
Treasury and the IRS recently released FATCA amendments and coordinating regulations.

IRS Notice 2013-69 FFI agreement for Participating FFI and Reporting Model 2 FFI in an easy to read format
This document is a formatted version of IRS Revenue Procedure 2014-13, FFI Agreement for Participating FFI and Reporting Model 2 FFI.

For the most recent forms and instructions, please visit our News & developments page

Intergovernmental Agreements

Ireland
Updated guidance notes for the implementation of FATCA in Ireland released
On October 1 2014, the Irish Revenue Commissioners released updated Guidance Notes on the implementation of FATCA in Ireland.

Brazil
Brazil and the US sign FATCA intergovernmental agreement
Brazil and the United States announced on September 23, 2014 that they have signed an intergovernmental agreement (IGA) to improve international tax compliance and to implement the Foreign Account Tax Compliance Act (FATCA).

Canada
Canada and the US sign FATCA Intergovernmental Agreement
The United States and Canada announced on February 5, 2014, that they have signed an Intergovernmental Agreement (IGA) to improve international tax compliance and to implement the US Foreign Account Tax Compliance Act (FATCA). The attached article provides an overview of the Canada - US IGA and discusses its scope and impact on Canadian institutions.

France
France and the US sign bilateral agreement on the implementation of FATCA
On November 14, 2013, French Minister of Economy and Finance Pierre Moscovici and US Ambassador to France Charles H. Rivkin signed a bilateral IGA intended to implement FATCA.

Germany
BMF announces the release of the German Intergovernmental Agreement for implementing FATCA
On Friday, 31 May 2013, the German Ministry of Finance, Bundesfinanzministerium (BMF), announced the release of the FATCA Intergovernmental Agreement between the Federal Republic of Germany and the United States (German-U.S. IGA) for implementing the broad ranging provisions of the Foreign Account Tax Compliance Act (“FATCA”). This Newsbrief provides an overview of the key elements of the German-U.S. IGA and how it compares to the Model 1 IGA.

Ireland
Irish FATCA Regulations enacted and in force from 1 July 2014
The regulations complete the legislative basis for the registration, due diligence and reporting obligations of Irish Financial Institutions.

Ireland
FATCA for Irish financial institutions
On December 21, 2012, the Chargé d’affaires at the US Embassy in Ireland and the Minister for Finance of Ireland signed an intergovernmental agreement (the US-Ireland IGA), for which enabling provisions are due to be enacted into Irish tax legislation in the coming months. The IGA changes the way in which FATCA affects Irish financial institutions.

Ireland
United States and Ireland sign a bilateral FATCA Intergovernmental Agreement
This Global IRW Newsbrief provides an overview of the United States and Ireland FATCA intergovernmental agreement signed on December 21, 2012. This is the fourth FATCA agreement signed by the United States and closely follows the Model I Agreement issued in July 2012 by the governments of France, Germany, Italy, Spain, the UK and the US.

Malta
Malta and the US sign FATCA Intergovernmental Agreement
The United States and Malta announced on December 16, 2013 that they have signed an IGA to improve international tax compliance and to implement the US FATCA.

Netherlands
Dutch Ministry of Finance publishes draft decree to implement FATCA and opens internet consultation
On 1 July 2014, the Dutch Ministry of Finance published a draft decree amending existing Dutch legislation in order to implement FATCA in the Netherlands.

Netherlands
The Netherlands and the United States sign a bilateral FATCA Intergovernmental Agreement
On December 18, 2013, the U.S. Chargé d’Affaires ad interim and the Dutch State Secretary for Finance signed the Netherlands-US IGA under FATCA.

Russia
Law passed allowing Russian financial institutions to participate in FATCA
Federal Law No. 173-FZ was developed to allow Russian financial institutions to participate in FATCA, came into effect on 30 June 2014.

UK
HM Treasury and HMRC issued updated Guidance Notes in respect to the Implementation of The International Tax Compliance Regulations 2013
On August 14, 2013, HM Treasury and HMRC issued updated Guidance Notes (“UK Guidance”) in respect of the Implementation of The International Tax Compliance (United States of America) Regulations 2013 (“UK Regulations”) laid before the UK House of Commons earlier this month. This version of the guidance supersedes any versions previously published. This Newsbrief identifies key changes and certain additions from the draft UK Guidance released in May 2013.

UK
HMRC lays FATCA regulations before UK House of Commons
On August 7, 2013, HM Treasury and HMRC laid the International Tax Compliance (United States of America) Regulations 2013 (“UK Regulations”) before the UK House of Commons. The UK Regulations will bring the Agreement between the Government of the United States of America and the Government of the United Kingdom of Great Britain and Northern Ireland to Improve International Tax Compliance and Implement FATCA (“the Treaty”) into UK law.

UK
HMRC issues Draft Guidance Notes - Implementation of International Tax Compliance (United States of America) Regulations 2013
On December 18, 2012, HM Treasury and HMRC released the draft International Tax Compliance Regulations 2013 (“UK Draft Regulations”) to implement the Agreement to Improve International Tax Compliance and to Implement FATCA (“UK-US IGA”). This Newsbrief provides an overview of the key clarifications and gaps and includes an appendix with detailed analysis of, the UK Draft Guidance. A summary of responses to the consultation will be provided in a future Newsbrief.