The IRS today issued a reminder for foreign financial institutions to renew their Foreign Financial Institution (FFI) agreements if required by the 24 October 2017 deadline. Failure to renew an FFI agreement by the 24 October deadline will result in the group being removed from the November FFI list—and thus, subject to a 30% withholding tax on certain U.S. source payments.
As noted in the IRS release—IR-2017-174—an FFI must determine whether it is required to renew its FFI agreement. The IRS release provides information in table format to assist FFIs with the determination.
If an FFI has determined that it is required to renew, the FFI is directed to log into the “FATCA FFI Registration” system and click on the link to “Renew FFI Agreement.” The FFI will then need to verify, update (if needed), and submit the registration to renew the FFI agreement.
<p>© 2018 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.</p> <p>KPMG International Cooperative (“KPMG International”) is a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no client services. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm.</p>
The KPMG logo and name are trademarks of KPMG International. KPMG International is a Swiss cooperative that serves as a coordinating entity for a network of independent member firms. KPMG International provides no audit or other client services. Such services are provided solely by member firms in their respective geographic areas. KPMG International and its member firms are legally distinct and separate entities. They are not and nothing contained herein shall be construed to place these entities in the relationship of parents, subsidiaries, agents, partners, or joint venturers. No member firm has any authority (actual, apparent, implied or otherwise) to obligate or bind KPMG International or any member firm in any manner whatsoever. The information contained in herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor 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. For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at: + 1 202 533 4366, 1801 K Street NW, Washington, DC 20006.