The final stretch before going live
Over the last few years, the trend of global tax transparency and exchange of information has had a considerable impact on the financial industry.
With the entry into force of the Foreign Account Tax Compliance Act (‘FATCA’) withholding tax on 1 July 2014 and the imminent signature of the Luxembourg inter-governmental agreement (IGA), the Luxembourg financial institutions will make a leap towards the world of information exchange. FATCA calls for a completely new mindset to be adopted when doing business and will impact most actors in financial institutions.
The relevant Luxembourg financial institutions will have to comply with the FATCA requirements as implemented into local law. The operational implications should differ slightly depending on the business concerned, as illustrated in the following example.
In the example on the right, the insurance undertaking, investment funds, asset manager and custodian bank would be considered as FFIs (Foreign Financial Institutions). The majority of actors within these organisations will participate in the FATCA project.
Inside magazine issue 4 – March 2014
Inside is Deloitte’s quarterly magazine offering an exclusive insight into best practices, trends and opportunities faced by our clients across all industries.
Inside focuses on the main hot topics relevant for the market (Asset management, Banking, Insurance, Public sector, Healthcare, Private equity, Real estate, TMT, Manufacturing and consumer business, Transport and logistics).