The IRS are reminding Foreign Financial Institutions to renew their Foreign Financial agreements where required. The Foreign Financial Institutions will have until 24th October 2017 to renew. Those who fail to renew on time could be removed from the Foreign Financial Institution list by the following month. This will make them subject to a 30% tax on certain U.S. source payments.
All Financial Institutions are advised to login to the IRS site to review the FATCA FFI Registration system FAQs.
The FATCA FFI Registration system has been updated to include the ability for FFIs to renew their agreements with the IRS. Once logged into the registration system, a financial institution can determine whether it must renew its FFI agreement using the link to “Renew FFI Agreement.” The following table provides guidance regarding entities required to renew their FFI agreement is provided below to assist FIs with this determination. Once the determination is made, the system enables an FI to review and edit their registration form as needed. The FI will need to verify and update their registration information and submit to renew their FFI agreement.
he updates to the FATCA Registration system include the addition of Renewal of FFI Agreement fields and information on account home pages and the lead's view of member pages. These fields include:
- FI Renewal of Agreement Due Date
- Renewal of Agreement Submitted Date
- Renewal Status
The system instructions and online help have been updated to include instructions for the Renewal of FFI Agreement. The FATCA Registration User Guide has also been updated to include steps for FIs to renew their FFI agreement.
The update within the registration application includes the removal of the classification of limited FFIs and limited branches. This classification option will no longer be available for new FI applicants or for renewing FIs as the transitional period for the limited FFI and limited branches statuses has expired.