US regulators are to delay the implementation
of the controversial Foreign Account Tax Compliance Act (FATCA)
until the beginning of 2014.
The US Treasury Department and the Internal
Revenue Service (IRS) unveiled plans to gradually introduce the
requirements of FATCA from the beginning of 2013.
Go deeper with GlobalData
A foreign financial institution (FFI) must
enter an agreement with the IRS by 30 June 2013.
Withholding on US source dividends and
interest paid to non-participating FFIs will begin on 1 January
2014, and withholding on all withholdable payments will be fully
phased in from 1 January 2015.
‘High risk’ set at low
level
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Thank you!
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form
By GlobalDataThe legislation was ratified in 2010 as part
of the Hiring Incentives to Restore Employment (HIRE) Act, designed
to provide payroll tax breaks and incentives for businesses to hire
unemployed workers.
The new law requires FFIs to report to the IRS
information about financial accounts held by US taxpayers, or by
foreign entities in which US taxpayers hold a substantial ownership
interest.
Under FATCA, private banking accounts with a
$500,000 balance and above are considered to be high risk
accounts.
