Foreign Account Tax Compliance Act (“FATCA”) Update

Draft forms received

The IRS has received for public comment, draft versions of three forms which will be required in the compliance with FATCA. This is a much anticipated move that many institutions have been waiting for.

The forms are:

Draft Form W-8 BEN Certificate of Foreign Status of Beneficial Owner for United States Tax Withholding and Reporting (Individuals)
http://www.irs.gov/pub/irs-dft/fw8ben–dft.pdf

Draft Form W-8BEN-E Certificate of Status of Beneficial Owner for United States Tax Withholding and Reporting Entities
http://www.irs.gov/pub/irs-dft/fw8bene–dft.pdf

Draft Form W-9 Request for Taxpayer Identification Number and Certification.”
http://www.irs.gov/pub/irs-dft/fw9–dft.pdf

What is FATCA?

FATCA stands for the Foreign Account Tax Compliance Act which aims at addressing perceived tax abuse by US persons via offshore accounts. The new rules require certain foreign financial institutions to provide the IRS with information on certain US persons invested in accounts outside of the US.

FATCA begins in relation to certain payments made after 1 January 2014.