Revised Timeline for Implementing FATCA

July 15, 2013

Sections 1471 through 1474 of the U.S. Internal Revenue Code (“FATCA”) generally impose a 30% withholding tax on certain payments to a foreign financial institution (“FFI”) unless the FFI has entered into an agreement with the U.S. Internal Revenue Service (“IRS”) in which it agrees to comply with certain reporting, due diligence and withholding requirements with respect to its U.S. accounts.1 Alternatively, an FFI resident in a jurisdiction that has signed an intergovernmental agreement with Treasury to implement FATCA (“IGA”) may be deemed compliant if it complies with the reporting and due diligence requirements of the IGA. On July 12, 2013, the U.S. Department of the Treasury (“Treasury”) and the IRS issued Notice 2013-43 providing for (1) revised timelines for the implementation of FATCA and (2) additional guidance regarding the treatment of financial institutions located in jurisdictions that have signed IGAs but have not yet brought them into force.

Read "Revised Timeline for Implementing FATCA."