From 30 June 2014, FATCA came into force for what the US has designated as foreign financial institutions (FFIs), including non-US funds that are FFIs and also non-US investment entities. Any fund that is deemed to be in receipt of ‘withholdable payments’ (which encompasses various types of US-sourced income, gains, profits, interest or dividends) will be subject to FATCA withholding and reporting requirements. Many countries, however, have entered into intergovernmental agreements with the US that provide relief from the FATCA rules promulgated in the US Treasury regulations, and these must be considered in determining how FATCA will apply to each country’s funds.
