US releases final FATCA rules

The US authorities have released their final set of rules on the FATCA regime designed to prevent tax evasion among US citizens with assets in offshore accounts.

The final draft of the rules gives further details on the type of payments which will be subject to a 30% withholding tax, and clarifies the obligations of financial institutions caught by the rules. In October, the Internal Revenue Service and the US Treasury Department postponed the first phase of FATCA to give foreign financial institutions (FFIs) more time to comply with the rules. FFIs have until 1 January 2014 to meet the requirements of the regime, after the US authorities rejected fresh calls for a longer lead-in time. However, participating FFIs will have until 31 December...