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PricewaterhouseCoopers Ltd global IRW newsbrief on US Treasury and IRS release updates to FATCA regs
The US Treasury and the IRS released on 20 February 2014 two key updates to FATCA and related regulations. The second one related to Coordinating Regulations for Chapters 3, 4 and 61.
These regulations (together with the update for Final and temporary regulations for FATCA) are lengthy (over 550 pages) and contain numerous changes that will likely impact how FATCA is implemented by foreign financial institutions around the world. PwC will provide a detailed analysis shortly. In the meantime, please see the high level summary below.
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Coordinating regulations for Chapters 3, 4 and 61
The regulations also harmonize the requirements contained in FATCA with the pre-FATCA rules under Chapters 3 and 61 and Section 3406. Chapter 3 contains reporting and withholding rules relating to payments of certain US source income to non-US persons. Chapter 61 and Section 3406 address the reporting and withholding requirements for various types of payments made to certain US persons.
The changes made by the coordinating regulations relate to four key areas: • Rules for identification of payees • Coordination of the withholding requirements under Chapter 3, Section 3406 and FATCA • Coordination of Chapter 61 and FATCA regarding information reporting with respect to US Persons • Conforming changes to the regulations implementing the various regimes |
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