In the aftermath of recent disputes regarding the reporting by US persons of income from accounts with non-US financial institutions, Congress has proposed the Foreign Account Tax Compliance Act of 2009 or "FATCA." FATCA would require non-US financial institutions and certain other non-US entities to engage in information reporting or be subject to withholding tax on payments received from US sources.
In the latest in Mayer Brown's series of the Global Financial Markets Initiative teleconferences, we focus on the implications of this legislation, which represents a major change to the existing tax information reporting and foreign withholding regimes. What must non-US entities do to comply with the proposal and avoid foreign withholding tax? Which of the two regimes (financial institutions vs. other entities) would apply to various non-US investment vehicles? What are the prospects for enactment and further administrative guidance on reporting compliance?
Mayer Brown's Global Financial Markets Initiative helps clients deal with the legal and business challenges resulting from the ongoing turbulence in worldwide financial markets. By mobilizing the firm's global resources from multiple practices and offices, the Initiative provides clients with knowledgeable and timely counsel on a broad spectrum of their legal needs.Visit Mayer Brown's Financial Market Distress - Resources site for a compilation of links to the latest documents issued by regulatory and other governmental agencies worldwide, and additional commentary by Mayer Brown. Please bookmark it and check back often to stay informed on this rapidly evolving situation.