Tax alert - Issue 21, August 2010
Tax alert Issue 27 - November 2009 highlighted the impending introduction of the Foreign Account Compliance Tax Act of 2009 (FACTA). Although FACTA, which was passed by the U.S. Congress in March 2010 as part of the Hiring Incentives to Restore Employment Act, and signed by President Barack Obama thereafter, generally applies to payments made after 31 December 2012, Foreign Financial Institutions (FFIs) and other foreign entities with U.S. investments may need to start evaluating the impact FACTA may have on their business operations. This alert examines the potential impact of FACTA on entities investing into the U.S. and identifies a number of issues which still need to be addressed.