FATCA regulations - New Zealand
FATCA, or to give its full title, the Foreign Account Tax Compliance Act is legislation enacted in March 2010 by the US Government.
While a US piece of legislation, FATCA is directly relevant to New Zealand business. Under FATCA, foreign financial institutions (FFIs), and non-financial foreign entities are required to report information about offshore accounts and investments held by U.S. taxpayers to the IRS annually. These institutions include banks, insurance companies, hedge funds, mutual funds, superannuation funds and private equity firms. FFIs must enter into agreements with the IRS. If they fail to enter into such agreements to report U.S. accounts, they will face a 30% withholding charge.
As a recognized leader in both tax and technology, Deloitte is uniquely qualified to assess and address all of the implications related to compliance with FATCA. From analysis and remediation of existing systems to design and implementation of enterprise-wide systems and practical procedures needed to identify and report required information to the U.S. Internal Revenue Service, our specialists keep businesses one step ahead in this developing area of compliance and risk.
While business have until 30 June 2013 to enter into a FATCA agreement with the IRS, business should not wait until these rules become effective to begin assessing your needs and associated costs for compliance. By performing the proper compliance risk assessment now and evaluating necessary modifications to your existing systems, your organization will be armed with the level of risk intelligence required to address compliance with FATCA’s new withholding and reporting regime.
How we can help:
- Analyse implications of local laws against FATCA rules
- Assess areas and systems which are impacted,
- Prepare documentation of FATCA related business requirements,
- Prepare programs to meet FATCA expectancies,
- Draft procedure manuals (accounting, compliance, etc.),
- Prepare and execute training programs.
- FATCA: The path forward
A practical guide for analyzing and implementing the newly proposed Foreign Account Tax Compliance Act regulations
- Six Takeaways from Proposed FATCA Rules Issued by the U.S. Treasury Department and IRS
- FATCA – Are you on track?
Forward Focus - December 2011
- FATCA Implementation Date deferred...more time for implementation granted
Tax Alert - August 2011
- New US tax on non-complying foreign financial institutions
Forward Focus - March 2011
- Ten questions you wanted to ask about FATCA but were afraid to ask
Tax Alert - December 2010