FATCA: Understanding the Impact on U.S. Withholding Agents (Webinar Recording)
The Foreign Account Tax Compliance Act (FATCA) will become effective on July 1, 2014. Under FATCA, withholding will be required on certain payments made to noncompliant foreign payees. Enacted by the U.S. Congress in 2010 as part of the Hiring Incentives to Restore Employment Act (HIRE Act), FATCA will add further complexity to the reporting and taxation of certain payments made to foreign recipients in addition to the withholding tax and reporting requirements currently in place. In order to comply with the new law, all payers of U.S. FDAP-type income (interest, dividends, royalties, etc.), both domestic and foreign, will need to revise their payment and reporting procedures related to payments to foreign payees.