US House of Representativse Approves 'FATCA'
On December 7, 2009, the US House of Representatives approved fiscal measures that re-introduced provisions of the Foreign Account Tax Compliance Act of 2009 ("FATCA"), originally introduced in the US House of Representatives and the US Senate in October 2009. Substantially all of the FATCA provisions are incorporated in the Tax Extenders Act of 2009, which is set to become effective in 2013.
The main provision of FATCA is a new US withholding tax regime that requires non-US financial intermediaries to disclose financial information to the US tax authorities about their US clients or face a 30% withholding tax on the receipt of nearly all US source investment income and gross broker proceeds.
Click here to read QI Solutions' analysis of the legislation approved by the US House of Representatives.
