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What is FATCA?
FATCA is the Automatic Exchange of Information (“AEOI”) regime created by the United States and adopted into domestic Irish tax legislation with reporting on financial accounts via the Irish Revenue Commissioners(“Revenue”)on an annual basis,for onward submission to the IRS.
FATCA in general
- It requires Foreign Financial Institutions (“FFIs”) to report information on accounts held by Specified US Persons (individuals and entities) and certain Non-Financial Foreign Entities (“NFFEs”) controlled by Specified US Persons.
- FFIs are required to register with the IRS to obtain a Global Intermediary Identification Number (“GIIN”).
- Failure to comply with the relevant FATCA Regulations may result in a 30% withholding tax penalty on certain US Source Withholdable Payments.
FATCA in Ireland
- Ireland implemented FATCA by entering into an Intergovernmental Agreement (“IGA”) with the US. The provisions implementing Ireland’s IGA are set out in Section 891E of the Taxes Consolidation Act (“TCA”) 1997, which provides Revenue with the power to make regulations necessary for implementing the full terms of Ireland’s IGA.
- The initial detailed Irish Regulations on FATCA(S.I. No. 292 of 2014) were subsequently amended in November 2015 by S.I. No. 501 of 2015 and January 2018 by S.I. No. 19 of 2018.
- Guidance on the application of FATCA in Ireland was issued via Tax and Duty Manual Part 38-03-22: Guidance Notes on the Implementation of FATCA in Ireland.
- Foreign tax resident subsidiaries or branches of Irish FFIs are governed by the FATCA provisions in their jurisdiction of tax residence.
FATCA reporting requirements in Ireland
- Irish FFIs are required to file an annual FATCA Return with Revenue via Revenue Online Service (“ROS”) on or before 30 June with respect to the previous calendar year.
- In order to file a FATCA Return via ROS, Irish FFIs are required to have an Irish Tax Reference Number (e.g.Corporation Tax, Investment Undertaking Tax, Income Tax,etc.) and complete a once-off reporting registration.
- Where an Irish FFI does not have an Irish Tax Reference Number, it can file a “Reporting Entity Registration Form” with Revenue to register its FATCA reporting obligation and obtain an AEOI registration number to facilitate filing its Irish FATCA Return.
- Even if a Reporting Irish FFI does not hold any US Reportable Accounts, it will still be classified as an FFI. However, it will simply be required to file a nil FATCA Return annually. It is important to note that the requirement for an FFI to file a nil FATCA Return may differ between jurisdictions.
- If an Irish entity is not classified as an FFI, it should be classified as an NFFE with no FATCA registration or reporting obligations. However, it may be required to disclose its Controlling Persons (as defined), which are Specified US Persons when completing a FATCA Self Certification Form.
Key dates and deadlines
- FATCA GIIN Registration: No later than 30 days after the Entity becomes an FFI.
- FATCA Reporting: FFIs are required to file an annualFATCA Return on or before 30 June with respect to the previous calendar year.
- Due Diligence: The due diligence requirements underFATCA vary depending on whether the account is a New Account or a Pre-Existing Account, an Entity Account or an Individual Account and whether an Individual Account is a Low Value Account or a High Value Account. Ongoing FATCA due diligence obligations should be completed throughout the year.
How can KPMG help?
- Legal Entity Classification – Determine an entity’s FATCA status and its corresponding registration and reporting obligations (if any).
- Registration – Register with the IRS via the online registration portal to obtain a GIIN and register a FATCA reporting obligation with Revenue via ROS.
- Reporting – Prepare FATCA Returns aligned with Irish domestic reporting requirements to be filed with Revenue via ROS by 30 June annually with respect to the previous calendar year.
- FATCA Policies and Procedures – Review FATCA policies and procedures to ensure best practices are utilised and high quality information is returned to Revenue.
- Revenue Compliance Reviews - Assist FFIs with preparing for Revenue profile interviews and responding to FATCA related Revenue enquiries.
- Self-Certification Form / W-8 Form – Guidance on the completion or review of Self-Certification Forms or W-8Forms requested by FFIs for FATCA certification purposes.
- Legal Agreements – Review FATCA language included in legal agreements (i.e. loan agreements,prospectuses, subscription documents, etc.).
- Technical Training Sessions – Conduct training sessions on FATCA.
- KPMG Reporting Tool – KPMG has globally developed an AEOI Reporting Tool to assist FFIs with meeting their FATCA reporting obligations in the various participating jurisdictions.
Get in touch
If you have any related queries, please contact Kevin Cohen of our Financial Services team. We'd be delighted to hear from you.
Kevin Cohen
Partner
KPMG in Ireland
+353 87 744 2369 Kevin
Cohen
Phone number
