FATCA levies a 30% withholding tax on payments from U.S. sources with fixed or determinable, annual or periodic (FDAP) income, unless regulatory requirements for debtor documentation are met. On December 30, 2016, the IRS issued additional final rules regarding FATCA. These additions introduced changes to the documentation of sponsored companies and the registration process associated with the name of a sponsorship company. Starting in 2019, the 30% withholding tax will be applied to the gross proceeds of the sale or other sale of real estate of a species that may generate FDAP revenues from the United States, further extending the scope of the law. In accordance with Section 12.10 of the FFI Agreement (« Agreement »), a participating FFI must provide the IRS with a final certificate of compliance at the end of the FFI agreement under Section 8.03 (B) of the agreement covering the period between the end of the last certification period (or, if the first certification period is not completed, the effective date of the FFI agreement) up to the closing date (the « short certification period »). , that a regular review was conducted during this period. This final certification for the short certification period must be submitted within six months of the end of the procedure. If you terminated your FFI contract on July 22, 2018 and have a certification requirement, you must submit a definitive certification. After your account is terminated in the FATCA registration system, you will receive a message reminding you of your certification obligation. The final certification must be completed within 6 months of cancellation. Your FATCA IDENTIFIANT and passcode remain active during this time. To submit the final certification after the revocation of the FFI agreement: Yes, an IF can change its type without terminating its current registration contract by selecting the link « Edit the FI type » on the home page and updating the registration form.
The following FI-type amendments are permitted in the FATCA registration system: Note: Companies that are in a Model 1 legal order and have entered into an FFI agreement, as described in the table above, on behalf of certain branches, must renew the FFI agreement on behalf of these branches. You are generally exempt from FATCA registration and withholding if you qualify to be treated as an exempt economic beneficiary (for example. B as a foreign central bank described in Treas. A withholding agent is not required to withhold a reducible payment as long as the withholding agent can reliably link the payment to documents in order to determine the portion of the payment attributable to an exempt economic beneficiary in accordance with the rules.