Ireland

FATCA & its impact on your business 

The Foreign Account Tax Compliance Act (“FATCA”) requires Foreign Financial Institutions (“FFIs”) to register and report information on accounts held by US persons and certain US controlled foreign entities.  Failure to comply will result in a 30% withholding tax penalty on certain US sources of income beginning 1 July 2014.

It is critical for Irish tax resident entities and Irish branches of foreign entities to determine whether or not they are classified as Reporting Irish Financial Institutions under Ireland’s IGA with potential registration and reporting obligations.

 

Key decision steps for Irish entities

  • Determine if the entity is classified as an FFI under Ireland’s IGA
  • Determine if the entity qualifies for any registration and/or reporting exemptions
  • Register for a Global Intermediary Identification Number (“GIIN”) via the IRS portal
  • Undertake the necessary due diligence procedures to identify US Reportable Accounts
  • Prepare the applicable information to report to the Irish Revenue Commissioners
  • Consider the applicability of other country’s IGAs or US FATCA Regulations to subsidiaries or branches located outside of Ireland
  • Consider the organisational impact of FATCA on the entity’s business, including its interactions with other service providers, the risk of the 30% FATCA withholding tax on US source income and the inclusion of FATCA language in legal agreements

 

How KPMG can help

Our FATCA team can help walk through the implications of the above steps and assist you in moving towards becoming Irish IGA compliant.

 

If you would like a FATCA brochure or require further information on how we can assist your company, please call us or email: rachel.hewitt@kpmg.ie.