FATCA e-alert issue 2015-15 | KPMG | LU

FATCA e-alert issue 2015-15

FATCA e-alert issue 2015-15

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IRS announces upgrade to FATCA online registration system

On 23 November 2015, the IRS issued a release announcing an upgrade to the FATCA online registration system.

According to the IRS release - IR-2015-131 - the FATCA online registration system upgrade:

  • Allows sponsoring entities to register their sponsored entities to obtain a global intermediary identification number (GIIN) 
  • Allows users to update their information, download registration tables and change their financial institution type 
  • Includes an updated jurisdiction list

Today’s IRS release reports that more than 170,000 financial institutions, located in more than 200 jurisdictions, have registered with the IRS.

FATCA requires certain sponsored entities (including those covered by an intergovernmental agreement (IGA)) to have their own GIIN for FATCA reporting and withholding purposes by 31 December 2016. To facilitate this requirement, the FATCA online registration system will now enable sponsoring entities to add their sponsored entities and, if applicable, sponsored subsidiary branches. These entities can be added either individually or by submitting a file containing information for multiple entities.

The IRS release also reports the availability of a Microsoft Excel-based Sponsored entity data preparation tool for users choosing the multiple record file upload option, thereby expanding the values available for the GIIN for new sponsored entities and sponsored subsidiary branches.

The IRS reported that the improvements to the system and new additional features added include:

  • New questions such as asking foreign financial institutions to indicate their tax identification number in their country or jurisdiction, if they have one 
  • Other questions for identifying the common parent entity of the expanded affiliated group 
  • Certain financial institutions can now change their “financial institution type” 
  • Member financial institutions can now transfer to another expanded affiliated group without having to cancel their current agreement and re-register

After a change or transfer, a new FATCA account will be created with existing registration information, including branches.

 

For further information, please do not hesitate to contact us.

 

 

 

 

 

 

Any tax advice in this communication is not intended or written by KPMG to be used, and cannot be used, by a client or any other person or entity for the purpose of (i) avoiding penalties that may be imposed on any taxpayer or (ii) promoting, marketing, or recommending to another party any matters addressed herein.

The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavour to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation.
 

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