South Africa

Details

  • Industry: Financial Services, Banking
  • Type: KPMG information
  • Date: 2012/03/01

KPMG analysis of the FATCA proposed regulations 

Since the enactment of the Foreign Account Tax Compliance Act (FATCA) in March 2010, the IRS issued several rounds of preliminary guidance prior to the release of proposed regulations on February 8, 2012. According to the preamble, proposed regulations incorporate the guidance contained in these prior IRS notices, but also provide guidance on topics that were not addressed in the FATCA-related notices.
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Several of those key provisions are:

 

  • Extension of the transition period for the scope of information reporting and withholding on passthrough payments
  • Modification of due diligence procedures for the identification of accounts
  • Transitional rules for affiliates with legal prohibition on compliance 
  • Refinement of the definition of financial accounts
  • An expanded scope of 'grandfathered obligations'.


KPMG firms' Tax professionals have prepared an analysis that examines these provisions.