Section 12.01 of Rev. Proc. 2017-16, 2017-3 I.R.B. 501 states that the current FFI agreement expires on December 31, 2018 and can be renewed as provided for in Article 12.08. Article 12.08 provides that a participating IFF may renew the FFI agreement through the FATCA registration website or as provided by the IRS. Notwithstanding the provisions of Article 12.08, there is no renewal measure for duly registered FRFIs. Instead of renewing the FFI agreement via a link on the FATCA registration website, a participating FFI who wishes to renew the FFI agreement can do so by remaining registered on the FATCA registration website after December 31, 2018. The IRS considers the continued registration of a participating IFF to be its acceptance of the terms of the FFI agreement, which is set out in Rev. Proc. 2017-16 to 31. December 2022, or the publication of another revenue procedure that includes Rev. Proc.
2017-16 replaced in whole or in part. If your renewal status is marked as “Late” and the effective date of your renewal is 01/01/2017, you can ignore the “Late” renewal status if your registration status is “Approved” and you have also fulfilled your FFI contract renewal obligation, if applicable. Added: 17.10.2018 An FI can change its type without cancelling its current registration contract by selecting the “Change FI type” link on the homepage and updating the registration from Single to Lead. For more information, see the FATCA Online Registration User Guide. Once the IF has completed the update to “Lead”, it can start adding member IFs. For more information on adding members, see the FATCA Online Registration User Guide. The IRS expects the FATCA portal to be ready for the FFI renewal process in May 2017. Q9. I have determined from the graph above that I am not obliged to renew an FFI agreement. The “Renew FFI Agreement” link asks if I and/or my branches are obliged to renew the FFI Agreement.
Should I select “No”? What happens if I don`t select “Yes” or “No”? Will I lose my GIIN? Yes, participating foreign financial institutions (including foreign model reporting 2 financial institutions) that have otherwise complied with the terms of the IFF Agreement (including the IFF Agreement in effect since January 1, 2017) have until October 24, 2017 to renew the IFF Agreement and continue to be treated as Participating IFFs. If a company that needs to renew the FFI agreement does not renew the FFI agreement before October 24, 2017, the company`s registration status will be changed to “incomplete”, the company`s GIIN will no longer appear on the monthly FFI list from November and the company will be considered a non-participating IFF as of January 1. 2017, as provided for in section 3.02 of the 2017-16 tax procedure. Added: 08-01-2017 FATCA requires FRFIs, among others, to register with the IRS and obtain a GIIN and enter into an FFI agreement for FRFIs located in a Model 2 or non-IGA IGA jurisdiction. FRFIs are generally required to certify their FATCA status to withholding tax officers by providing their GIIN on a U.S. source withholding tax form (typically an IRS Form W-8BEN-E or W-8IMY) to avoid fatca withholding tax. FRFIs that need to renew their IFFs and do not do so by July 31, 2017 will be treated as having terminated their IFFs retroactively to January 1, 2017, and their GIIN will be removed from the IRS-approved FRFI list. These FRFIs will be subject to a 30% U.S.
withholding tax on certain types of U.S. investment income in the future and may potentially be subject to contractual liability to FATCA source containers (including principal dealers, custodians and counterparties of the International Swaps and Derivatives Association) for the period during which their FFI agreements are terminated retroactively. Q8. I am a company that is registered in the FATCA registration system and has received a GIIN. Do I need to renew my FFI contract? Q11. I am a company that needs to renew the FFI agreement. What happens if I mistakenly selected “No” when asked if I should renew the FFI agreement? The renewal requirement generally applies to funds located or treated as such in a jurisdiction with a Model 2 Intergovernmental Agreement (EGA) (e.B Bermuda, Hong Kong and Switzerland) or in a non-IGA jurisdiction (e.B the Marshall Islands and Russia). The requirement generally also applies to funds that are located in an IGA Model 1 jurisdiction, but rely on U.S. Treasury regulations for FATCA compliance and not on the relevant Model 1 IGA otherwise available. Funds that renew their FFI agreements retain their existing Global Intermediary Identification Number (GIIN) and remain listed as FATCA-compliant FRFIs on the IRS website. Since the number of registrations that will be received by the IRS and the processing times are unclear, sponsors who have not yet renewed the RIG To be renewed for their mutual funds should apply for them as soon as possible.
Non-U.S. mutual funds that are located in a Model 1 IGA jurisdiction (such as the Cayman Islands) and that are permitted to rely on such an IGA are not required to take action (unless the fund operates a branch outside its IGA jurisdiction, which is generally not provided for in practice). The IRS expects the 2017 FFI renewal feature to be available in May 2017. An IFF wishing to renew its FFI agreement must do so before 31 July 2017. The following table provides a general overview of the types of businesses that must be certified and the certification(s) they must submit. More specific guidance can be found in Section 8 of the 2017-16 Tax Procedure, in the Treasury Regulations or in an applicable Intergovernmental Agreement (IGA). We have already written about the publication of an updated “FFI agreement” by the Internal Revenue Service in late 2016 that will be concluded by foreign financial institutions that wish to continue to comply with the Foreign Account Tax Compliance Act (FATCA). All foreign financial institutions that had an FFI agreement that expired on December 31, 2016 and wish to retain their GIIN and thus remain FATCA compliant must do so by July 31, 2017. Financial institutions that need to renew their FFI agreement and do not do so by July 31 will be treated as if they had terminated their FFI agreement on January 1, 2017 and will be removed from the list of FATCA-compliant financial institutions on the IRS website. An EEF who declares directly is eligible to register for this status and must complete an online registration upon registration (or submit a paper form 8957) based on the instructions in this FAQ. For registrations made in years after 2014, it is expected that the Online Registration User Guide and The Form 8957 Instructions will be updated to include instructions for registration by reporting THE TFPs directly.
To complete the registration of a direct reporting EEF, generally replace the words “financial institution” with the words “financial institution” with the words “directly reporting an NFFE” wherever they appear in the online registration user manual (or in the instructions for Form 8957). Unless specific instructions for a registration question are described here in this FAQ, please use the general instructions in the Online Registration User Guide (or Form 8957). Part 1 Question 1 – Select “Single”. Question 4 – – Select “None of the above”. Question 6 – – Select “Not applicable”. Question 7 – – Select “No”. (If you are using the online portal, selecting “No” will automatically skip questions 8 and 9.) Question 8 – – Skip this question (which concerns the branches) Question 9 – – Skip all parts a) to c) of this question (which concern the branches). Question 10 – – Enter the information of the person responsible for ensuring that the directly subordinateD NFFE complies with its FATCA reporting obligations and acts as a point of contact with the IRS with respect to its status as a direct reporting NFFE….
