Australia

Details

  • Service: Tax, Topics, Financial Services Regulation, FATCA
  • Industry: Financial Services, Banking, Investment Management, Insurance, Superannuation
  • Type: Regulatory update
  • Date: 14/02/2013

FATCA Update

FATCA: Where are we now?
This series provides an update on the status of the Foreign Account Tax Compliance Act (FATCA).

FATCA update – release of final regulations 

On 17 January 2013, the U.S. Department of Treasury (Treasury) and the Internal Revenue Service (IRS) released the final regulations for the Foreign Account Tax Compliance Act (FATCA). Since the enactment of FATCA in March 2010, Treasury and the IRS have issued several rounds of preliminary guidance, including the proposed FATCA regulations.
FATCA update – release of final regulations cover
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The released final regulations have been much anticipated by taxpayers and organisations that expect to be affected by the new FATCA withholding and reporting regime, particularly in light of the looming 1 January 2014 effective date.

 

Key insights

  • Most (if not all) Australian complying superannuation funds will fall within the definition of a 'Treaty-qualified retirement fund' and qualify for deemed compliant foreign financial institution (FFI) status.
  • Changes contained in the final regulations mean that more entities in the funds management business model are considered FFIs.
  • Most real estate investment trusts will still fall within the definition of FFI, although there is guidance that a fund that only invests in direct property may not be an FFI.
  • Certified Deemed Compliant FFI credit unions and building societies may have relaxed certification requirements.
  • Generous grandfathering regime for life insurance policies in force.
 

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