April 2015 - FATCA reporting
Onboarding for FATCA reporting has begunThe first FATCA reports must be sent by 30 June and Fundsquare has now opened its test platform to Luxembourg companies reporting on US clients
ADDENDUM (July 2015)
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Deadline for first reports: Following a decision of the Luxembourg tax authority, the first reporting deadline is now 31 July and not 30 June.
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Nil (zero) reporting: The Luxembourg tax authority draft circular (ECHA - n° 3), includes exception rules for “Sponsored Investment Entities” and “Sponsored FFI” (see: http://www.impotsdirects.public.lu/echanges_electroniques/FATCA/)
ADDENDUM (July 2015)
- Deadline for first reports: Following a decision of the Luxembourg tax authority, the first reporting deadline is now 31 July and not 30 June.
- Nil (zero) reporting: The Luxembourg tax authority draft circular (ECHA - n° 3), includes exception rules for “Sponsored Investment Entities” and “Sponsored FFI” (see: http://www.impotsdirects.public.lu/echanges_electroniques/FATCA/)
Under the US FATCA (Foreign Account Tax Compliance Act) any financial institution that has US account holders is obliged to report to the US tax administration on their clients’ income from financial assets held outside the US.
To comply with these obligations, financial institutions in Luxembourg will report to the Luxembourg tax administration, which will then transmit the information to the US tax administration (the IRS).
To assist non-US companies who fall under the remit of FATCA, Fundsquare has been appointed by the Luxembourg Tax Authorities as a mandatory channel to transmit the FATCA reports. As a consequence, Fundsquare has created a new module on its e-file.lu platform called “FATCA Reporting”. This module will enable companies to transmit, either by themselves or through specialist companies such as audit firms and central administrators, the reports to the Luxembourg tax administration.
Fundsquare, through its e-file.lu platform is already transmitting more than 1 million regulatory reports to local authorities.
The first reports are to be sent to the Luxembourg tax administration by 30 June and the first reporting to the US IRS will be carried out by them in September.
After testing with the Luxembourg tax administration earlier this year, Fundsquare has now opened its test platform to filing entitles.
This will be followed by the opening of the production platform after mid-May, depending on final confirmation from the Luxembourg tax administration.
FATCA will affect a large number of companies in Luxembourg, particularly since the so-called “nil reporting” will be required. This means that even if a financial institution has no US clients it must still send an empty report confirming this.
The first companies have begun the onboarding process for Fundsquare transmissions of FATCA reports. If you need to sign up for our FATCA reporting module, please contact [email protected].
Published on: 30 April 2015