US Foreign Account Tax Compliance Act (FATCA) - March 2022
The FATCA form has been updated as of March 2022. 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 (email@example.com) or telephone (+44 7826 908550).
FATCA Certificate W8BENE (2 MB)
You may also be interested in:
The International Group has approved an updated version of essDOCS's electronic trading system.
Crew Changes - A Comprehensive Guide
We have been working with over 200 members of our correspondents network to produce a comprehensive document that outlines challenges and changes for crew changes in ports
On 8th February 2022 the UK Club held a webinar on the subject of "Narcotics smuggling for ships"
Wash Damage and Speed Regulation Update - River Plate and Parana De Las Palmas, Argentina
The UK Club have received the following update from local correspondents, Pandi Liquidadores, regarding new speed limitations and wash damage guidance within the Parana River area.