This site uses cookies to provide you with a more responsive and personalized service. By using this site you agree to our use of cookies. Please read our cookie notice for more information on the cookies we use and how to delete or block them.

Global > Luxembourg > Market challenges > FATCA > Technical aspects

Global site selector

Technical aspects

Introduction

The U.S. Treasury Department and the Internal Revenue Service (IRS) have released proposed regulations on FATCA.

FATCA, which became law in 2010, requires foreign financial institutions to provide detailed information about U.S. account holders to the IRS. The law is effective on January 1, 2013.

On February 8, 2012, the U.S. Treasury Department and the IRS released proposed regulations and the top financial services executives should likely consider the takeaways from these regulations.

FATCA technical aspects in detail

Due diligence procedure
The proposed rules regarding classification and action on pre-existing accounts are a significant departure from the guidance contained in the prior notices and include changes that should reduce the affected customer population and streamline the remediation process.
Reporting requirements
The proposed rules give FFIs additional time to make adjustments to their systems for reporting US income. These reporting requirements will be phased in gradually between 2014 and 2017.
Withholding requirements
The proposed withholding requirements are scheduled to be gradually phased in over several years starting with US-sourced income payments beginning on 1 January 2014.
Affiliated group requirement
These rules would add a transition period (until 1 January 2016) to the expanded affiliated group requirement to comply with FATCA if certain branches or entities within the group are unable to fully comply with FATCA (e.g., limited branches and limited FFIs).
The “FATCA five”
The US has signed an agreement with five European governments to help combat tax evasion. France, Germany, Italy, Spain, and the United Kingdom said they would jointly develop a framework to collect and send information about offshore accounts held by Americans from their banks to the IRS.

Contacts

Pascal Rapallino
Partner - Private Wealth Services Leader
Pascal Noël
Partner - Tax - International Tax-GFSI
Basil Sommerfeld
Partner - Operations & Human Capital Leader
Alain Verberken
Directeur - Tax - International Tax-GFSI

Stay connected:

Material on this website is © 2013 Deloitte Global Services Limited, or a member firm of Deloitte Touche Tohmatsu Limited, or one of their affiliates. See Legal for copyright and other legal information.

Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited, a UK private company limited by guarantee, and its network of member firms, each of which is a legally separate and independent entity. Please see www.deloitte.com/about for a detailed description of the legal structure of Deloitte Touche Tohmatsu Limited and its member firms.

Get connected

Share your comments