Implementation of some of the FATCA rules–1 July 2014

Implementation of some of the FATCA rules–1 July 2014

Implementation of the FATCA regime was originally intended to commence on 1 January 2013 but following several delays, it begins to take effect from today, 1 July 2014. Further implementation will take place in phases throughout 2015–17.

From 1 July 2014:

  • Grandfather period expires for issuance of obligations exempted from FATCA withholding (unless the obligation gives rise to a withholdable payment solely because the obligation is treated as giving rise to a dividend equivalent or unless the obligation requires a secured party to make a payment with respect to, or to repay, collateral posted to secure a grandfathered obligation)
  • Withholding required on US source fixed or determinable annual or periodic (FDAP) payments to non-participating foreign financial institutions (FFIs), on-compliant non-financial foreign entities (NFFEs), and recalcitrant account holders

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    About the author:

    Neeta has been working as a paralegal in Banking and Insolvency for the past 4 and a half years.

    She started her legal career at Allen & Overy in 2008 in the midst of the global financial crisis and the collapse of Lehmans where she gained most of her experience.

    Neeta also did a short stint in litigation at the Revenue and Customs Prosecutions Office. Neeta graduated with a 2:1 honours degree from University of London, Queen Mary College and went on to obtain a distinction from the College of Law in the Legal Practice Course. She moved to Lexis®PSL in April 2013.