Foreign Account Tax Compliance Act (FATCA)

FATCA is a new US law established to prevent tax avoidance by US tax payers and will come into effect from the 1st July 2014.

The legislation impacts Insurance and Reinsurance premium payments for US-sourced business and requires all non-US carriers which underwrite such business to demonstrate their compliance with the law. Failure to do so will result in 30% of the premium having to be withheld by way of a Withholding Tax. Compliance can be demonstrated by completion and submission of the W-8 BEN-E form.