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US FATCA - Foreign Account Tax Compliance Act: FFI Agreement, FATCA Withholding, and GIIN Registration

US Foreign Account Tax Compliance Act (FATCA), enacted in the Hiring Incentives to Restore Employment (HIRE) Act 2010 and implemented via IRC Sections…

What US FATCA - Foreign Account Tax Compliance Act: FFI Agreement, FATCA Withholding, and GIIN Registration requires

US Foreign Account Tax Compliance Act (FATCA), enacted in the Hiring Incentives to Restore Employment (HIRE) Act 2010 and implemented via IRC Sections 1471-1474, requires foreign financial institutions (FFIs) to report US account holders and US-owned foreign entities to the IRS or face a 30% withholding tax on US-source payments. FFIs may comply via: (1) direct FFI Agreement with IRS (Registered Deemed-Compliant or Participating FFI); (2) Intergovernmental Agreement (IGA) with the US - Model 1 IGA requires the FFI to report to its home jurisdiction, which automatically exchanges with the IRS; Model 2 IGA requires direct FFI reporting to the IRS. FFIs must obtain a Global Intermediary Identification Number (GIIN) and register on the FATCA FFI Registration System. Withholdable payments include US-source dividends, interest, premiums, annuities, and gross proceeds from sale of US securities.

Pillar: Tax & Transfer Pricing · Authority: US Internal Revenue Service (IRS) - Large Business and International Division · Version: 2.0.0 · Last updated:

Primary source: https://www.govinfo.gov/content/pkg/USCODE-2022-title26/html/USCODE-2022-title26-chap4.htm

SHA-256 integrity: cf9fd8f1480ef927c5a847b8356e3849f4faed9da5d49a8be9ad70ff98537f79

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