The Road Ahead: Thoughts on the recently released final FATCA regulations
Following our initial assessment of the final Foreign Account Tax Compliance Act (“FATCA”) regulations(available here), we now provide you with a document (available here) which highlights several important takeaways from the final regulations, as well as Deloitte’s point of view on these rules, including the following topics:
- Treasury’s risk-based approach limits institutions, obligations and accounts subject to FATCA
- Collaboration with foreign governments is a move towards a global information reporting framework
- Registration and technical implementation questions are addressed
- Provisions on account documentation and due diligence requirements relieve some burden
- Rules on withholding provide clarity on certain issues but leave others ambiguous
- Reporting provisions were unchanged
- These rules are now final.
A key point for Australia in our latest document is that the final regulations leave open the opportunity for foreign governments working towards an Inter-Governmental Agreement (IGA) on FATCA, such as Australia, to negotiate with the U.S. Treasury for inclusion of IGA terms that would benefit or protect entities within their jurisdictions from the requirements of the final regulations.
As noted in our previous FATCA update, the final FATCA regulations will apply to operations of Australian financial institutions in jurisdictions that do not enter into an IGA or an IGA is not signed before the start date for FATCA.
Deloitte Dbriefs webcast
A Special Edition Dbriefs webcast focused on the final regulations was held on January 22 in the US. If you did not attend the webcast due to the time difference between Australia and the U.S., please click here to view the recorded version of the webcast.