Therefore, an obligation held by an middleman or flow-via entity is handled as a preexisting obligation if it is issued, opened, or executed earlier than January 1, 2015. In such a case, the withholding agent could rely on a pre-FATCA Form W-eight to doc the holder of the duty all through 2014. As set forth in Announcement , launched April 2, 2014, to ensure inclusion on the primary IRS FFI List prior to the date FATCA withholding goes into impact, an FFI should finalize its registration by May 5, 2014. A special rule, however, offers that a withholding agent does not have to obtain a reporting Model 1 FFI’s GIIN for funds made earlier than January 1, 2015. As a end result, whereas a reporting Model 1 FFI is at present in a position to register and procure a GIIN, it’ll have additional time past July 1, 2014, to register and procure a GIIN in order to ensure that it is included on the IRS FFI listing earlier than January 1, 2015.
The chapter 4 laws usually provide that, in order for withholding to not apply, a withholding agent must acquire the GIIN of a PFFI or an RDCFFI for payments made after June 30, 2014. A special rule in these regulations, nonetheless, offers that a withholding agent does not need to obtain a reporting Model 1 FFI’s GIIN for funds made before January 1, 2015. As a result, a reporting Model 1 FFI may have further time beyond July … Read More
