PwC Singapore AM Connects FATCA for Asset Managers, Mar 2014 | Page 4

Section 1 – FATCA basics

Understanding FATCA
What is FATCA?

FATCA requires foreign financial institutions (FFIs) to
provide Internal Revenue Service (IRS) with information on
certain US persons’ accounts outside of the US and
information about substantial US owners of certain non-US
entities.

What does it do?

FATCA imposes new documentation, withholding, and
reporting requirements on Foreign Financial Institutions
(FFIs), Non-Financial Foreign Entities (NFFEs) and all US
withholding agents (USWAs)

Why should a
financial institution
care?

FATCA imposes a 30% withholding tax on payments to noncompliant entities and individuals. Failure to withhold
transfers the liability to the payer.

Singapore Asset Management Connects: FATCA Briefing •
PwC

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