The Impact of the Final FATCA Regulations on the Asset Management Industry (Ernst & Young)

KEYWORDS: withholding agents, FATCA, Foreign Account Tax Compliance Act, Internal Revenue Service, IRS, foreign financial institutions, Third-party administrator, tax, compliance requirements, hedge fund registration, reporting requirements, asset managers, strategy

Authors:
Organizations:
  • Ernst & Young

Summary:

The final Foreign Account Tax Compliance Act (FATCA) regulations released on 17 January 2013 attempt to create a targeted risk-based approach to FATCA to reduce the operational burden on financial institutions, while maintaining FATCA’s core objective of capturing information on United States (US) taxpayers with investments in non-US jurisdictions. A withholding agent, including a US fund, will have to meet FATCA obligations. A non-US entity, including an asset management firm, will need to be analyzed in order to determine its FATCA obligations.

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