US Withholding Tax: Practical Implications of QI and FATCA (Global Financial Markets)

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The US is the world's largest capital market - its withholding tax system is also the most complex. The QI regulations, which affect both qualified and non-qualified intermediaries, impose onerous documentation, withholding and reporting obligations on financial firms receiving US sourced income on behalf of their clients. Those signing QI agreements with IRS also have stringent control and oversight obligations. Those who do not (NQIs) still have obligations, but are often unaware of them and thus liable for severe penalties. FATCA regulations on the other hand impose stringent disclosure and reporting requirements on US investors with foreign accounts as well as the institutions that provide those accounts. Triggered by concerns over tax evasion, the US authorities have widened the net for those who will be subject to these regulations and increased the severity of non-compliance penalties. Understanding these two systems, their interactions and the consequences of failure to comply, are essential tools for those dealing with the US trading markets. This book gives practical insights for investors and intermediaries trying to comply with the US QI and FATCA tax regulations, guiding the reader through these complex regulations into how to meet these compliance burdens.