US Foreign Account Tax Compliance Act (FATCA) - March 2021
The FATCA form has been updated as of March 2021. You can find the new version attached below.
FATCA became law in March 2010 and comes into effect on 1st July 2014. The stated objectives of the legislation according to the US Internal Revenue Service are:
"Targeting tax non-compliance by U.S. taxpayers with foreign accounts focusing on reporting:
- By U.S. taxpayers about certain foreign financial accounts and offshore assets
- By foreign financial institutions about financial accounts held by U.S. taxpayers or foreign entities in which U.S. taxpayers hold a substantial ownership interest
The objective of FATCA is the reporting of foreign financial assets; withholding is the cost of not reporting."
We understand that FATCA applies to insurance premiums emanating from the US to foreign entities. Such premiums are treated prima facie as withholdable payments. This means that in the absence of evidence to demonstrate FATCA status, a 30% withholding tax must be applied. The UK Club has taken advice and understands that under US law, the Club is treated as a "passive non-financial foreign entity", thus rendering payments made to it exempt from the withholding tax. The Club evidences its FATCA status through the IRS W-8BEN-E Form.
We have already received enquiries from a number of brokers and Members seeking information on the Club's FATCA status. If you have any questions regarding US FATCA or are remitting premium and require a copy of the Club's W-8BEN-E Form to establish a FATCA withholding tax exemption, please contact the Club's Compliance & Risk Director, Paul O’Neill by email (firstname.lastname@example.org) or telephone (+44 7826 908550).
FATCA Certificate (W-8BEN-E) (400 KB)
You may also be interested in:
China: Shanghai MSA issued a Safety Notice on inspection on propulsion and auxiliary machinery
Following the collision in the deep water channel of Changjiangkou (CJK) area, Shanghai Maritime Administration (the “Shanghai MSA”) has issued a Safety Notice to urge all ships to undertake thorough propulsion and auxiliary machinery detection prior to departure from the berth or arrival in the restricted waters.
QCR Spring 2021: Evergreen Marine (UK) Limited v. Nautical Challenge Ltd (Ever Smart c/w Alexandra I)  UKSC 6
The Crossing and Narrow Channel Rules; the Supreme Court has, for the first time in nearly 50 years, provided clarification on the construction of the International Regulations for Preventing Collisions at Sea 1972, as amended (“the Collision Regulations”) for the purposes of applying the Crossing Rules (Rules 15-17).