As expected, the provisions of the Foreign Account Tax Compliance Act (FATCA) have now been enacted into law as part of the Hiring Incentives to Restore Employment (HIRE) Act which was signed by President Obama on March 18, 2010. FATCA includes numerous far-reaching international tax provisions that will impose new reporting and certification obligations on a wide range of non-US financial intermediaries (including non-US banks, non-US investment funds and collective investment vehicles, non-US CLOs and CDOs) that own US investments.
More significantly, FATCA will affect non-US intermediaries, even if those intermediaries have no US clients. Thus, many non-US entities that perform financial intermediary functions will, for the first time, be forced to interact with the IRS and must now ensure their operations are conducted in line with yet to be determined US regulatory requirements in order to avoid being subjected to significant withholding taxes.
Please join as Thomas Delaney and Jonathan Sambur of Mayer Brown LLP discuss how FATCA will impact your business and what you can begin to do to prepare for its new due diligence and reporting requirements.
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.