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Foreign Account Tax Compliance Act (FATCA)

Purpose

FATCA was introduced in October 2009 and will be effective on 1st January 2013. This will affect all foreign financial institutions. The purpose is to complete Qualified Intermediary (QI) regulation frameworks in order to strengthen the battle of the U.S. Treasury against tax dodging.

Every account holder should be considered as a US Person unless proof of the contrary is provided. FATCA splits all foreign entities into two groups: Foreign Financial Institutions (FFIs) and Non-Financial Foreign Entities (NFFEs).

Challenges

A lot of insurance companies may belong to FFIs according to the definitions used by FATCA. They consequently have to comply with FATCA to avoid financial penalties. Thereby they have to adapt themselves to these new regulations and think ahead upcoming issues. Besides, some incompatibilities may occur.

Deloitte services offering

Considering these new regulations, we help to:

  • Analyse implications of local laws against FATCA rules
  • Assess areas and systems which are impacted,
  • Prepare documentation of FATCA related business requirements,
  • Programs to meet FATCA expectancies,
  • Draft procedure manuals (accounting, compliance, etc.),
  • Prepare and execute training programs.

Contacts

  • Pascal Noël
    Partner - Tax - International Tax-GFSI
  • Elisabeth Layer
    Partner - Audit
  • Basil Sommerfeld
    Partner - Operations & Human Capital Leader

Focus on

  • ExternalURL
    About FATCA
    A new disclosure and withholding regime

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