The requirements of the Foreign Account Tax Compliance Act (FATCA) and other recently revised US information reporting regulations are either effective immediately or are set to apply beginning on July 1. These rules not only impact the financial services sector, but are expected to affect many entities outside of the traditional financial services sector with operations both in and outside of the United States.
This is the latest in our series of Tax Insights describing some of the significant items in the regulations impacting nonfinancial MNCs. The topics addressed in this insight include:
An earlier Tax Insight examined entities classified as FFIs, classification of nonfinancial foreign entities (NFFEs), the responsibilities of sponsored entities, the alignment of withholding requirements, and revised reporting obligations. Please also see another earlier Tax Insight which highlighted many of the updates provided in these final and temporary regulations affecting all industries.