The Foreign Account Tax Compliance Act (FATCA) became law on March 18^th 2010. This new US-regulation requires foreign banks and other financial institutions outside the US to deliver information relevant for tax purposes on US clients to the Internal Revenue Service (IRS). The amount of information to be provided exceeds current Qualified Intermediary (QI) rules by far. Most of the FATCA rules will be put in force on January 1^st 2013. The detailed implementation rules are yet to be defined by the IRS, but already today it is foreseeable that the compliance with the new rules will pose some big challenges to banks and financial institutions.

In our newsletters we provide an overview of the new FATCA rules.