Foreign Account Tax Compliance Act (FATCA)

Your latest FATCA information

 

The widespread reach of FATCA: How will it affect your business?
Understanding its impact and the path forward for nonfinancial multinational businesses.

Download "The widespread reach of FATCA: How will it affect your business?"

IRS releases draft FATCA registration forms and additional information regarding FFI lists
Form 8957, when issued in final form, may be used by foreign financial institutions (FFIs) to register for FATCA purposes.

Download "IRS releases draft FATCA registration forms and additional information regarding FFI lists"

Applying FATCA to captive insurance arrangements: Surprising results may occur
This IRW Newsbrief highlights FATCA’s potential impact on the global captive insurance market.

Download "Applying FATCA to captive insurance arrangements: Surprising results may occur"

The insurance industry and FATCA – Moving from assessment to implementation: Top 13 in ’13
This whitepaper explores 13 critical issues that insurance industry executives should take into account in 2013 and beyond as part of their FATCA compliance programs.

Download "The insurance industry and FATCA – Moving from assessment to implementation: Top 13 in ’13"

Final FATCA regulations issued: Let the compliance begin
A comprehensive review and analysis of the final regulations, and some key actions for stakeholders to think about.

Download "Final FATCA regulations issued: Let the compliance begin"

How do the final FATCA regulations impact insurers?
In this Newsbrief, we detail the notable differences between the proposed and final FATCA regulations that will impact insurers.

Download “How do the final FATCA regulations impact insurers?”

How do the final FATCA regulations affect asset managers?
This Newsbrief highlights key areas for consideration for asset managers (including notable changes from the proposed FATCA regulations) as they set their FATCA implementation agenda for 2013 and beyond.

Download "How do the final FATCA regulations affect asset managers?"

Taking control of FATCA: Building effective internal controls and certifying compliance
This whitepaper from PwC's Global Information Reporting and Risk Assurance practices explores the controls and certification challenges for impacted entities.

Download "Taking control of FATCA: Building effective internal controls and certifying compliance"

1 2 3 4 5 6 7 8

How will your firm be affected by FATCA?

FATCA, which was enacted as part of the Hiring Incentives to Restore Employment (HIRE) Act of 2010, requires financial institutions to use enhanced due diligence procedures to identify US persons who have invested in either non-US financial accounts or non-US entities. The intent behind FATCA is to keep US persons from hiding income and assets overseas.

A foreign financial institution (FFI) could face significant consequences if it fails to enter into an agreement with the Internal Revenue Service (IRS), which is merely the first step; the ability to align all the key stakeholders, including operations, technology, risk, legal, and tax, will be paramount to successfully comply with FATCA. The institution would be subject to a 30% withholding tax on any “withholdable payment” made to its proprietary account for failing to comply with FATCA.

In addition, accountholders who don’t provide the FFI with FATCA-required documentation would be deemed recalcitrant. The FFI would then be obligated to deduct a 30% withholding tax on any withholdable payment credited to their accounts.

Preparing for FATCA

Multinational financial institutions will need to make significant process and technology changes to comply with FATCA. While most FATCA provisions don’t take effect until the middle of 2013, many financial institutions have already begun to prepare. Financial institutions should consider steps such as:

• Performing a current state assessment of your systems and operations.
• Conducting gap analyses against your identified requirements.
• Developing action plans to implement changes required for FATCA compliance.
• Evaluating your legal entities to determine if they are FFIs or otherwise covered by FATCA.

How PwC can help you

To help you prepare, PwC has formed a network of FATCA specialists in key markets throughout the world. These professionals are part of our Global Information Reporting (GIR) practice, which brings together specialists who know the intricacies of tax law as well as local jurisdictions, rules and regulations.

Financial services companies already have worked with us on current state and gap assessments and taken part in our FATCA training programs. To plan your transition, contact PwC’s FATCA team:

• Stuart Finkel at +1 (646) 471 0616
• Scott Dillman at +1 (646) 471 5764
• Dominick Dell'Imperio at +1 (646) 471 2386