FATCA requires U.S. banks to enhance the information they collect about non-financial foreign entities
(NFFEs) and FFIs. Failure to provide satisfactory information will result in the application of a 30%
withholding tax on payments of U.S.-sourced fixed, determinable, annual or periodic (FDAP) income.
Examples of FDAP income could include: payment of interest, dividends, rents, salaries, wages,
premiums, annuities, compensations, remunerations, emoluments, and other fixed or determinable
annual or periodical gains, profits and income.
Additionally, the U.S. Internal Revenue Service (IRS) has issued new tax forms, most notably Form W-8BEN
and Form W-8BEN-E. Account holders will be expected to use these new forms to confirm their FATCA
status with their financial services provider.Share