FATCAFOREIGN ACCOUNT TAX COMPLIANCE ACT

MARZO DE 2014

WHAT IS NECESSARY FOR FATCA IMPLEMENTATION FATCA?

• Administrative Requirements– Appoint an Officer responsible for the Program, establish a Compliance Program and sign an

FFI Agreement.

• Requirements for the Inclusion of Accounts– Establish and implement processes and procedures for documenting and performing

due diligence on the holders of accounts and beneficiaries under FATCA

• Recourse for Pre-existing Accounts:– Document and classify all accounts established in the system before June 30 th, 2014

which in turn must be documented and updated by 31st December, 2015 at the latest.

• Withholding and Deposit Requirements– Determine and report WITHHOLDING AGENTS any 30% withholdings under FATCA

made for payments, subject to withholding, to FFI Non Participants, holders of recalcitrant accounts and NFFEs that do not comply, or withhold securities which have not been with withheld by an agent..

• Reporting Requirements– Starting January 1st , 2015 provide reports to the IRS about securities delivered to

accounts of USA residents and nationals, to accounts deemed to be held by USA nationals and any payments received from an American source during 2014.

ASSESSMENT OF THE IMPACT ON DECEVAL

Impact Category Elements Comments

High Management

• Officer Responsible for the Program• PFFL registration request• Compliance Plan• Review of contracts with direct depositors• Written policies• Systems Changes• Follow-up and conciliation

Deceval must implement an action plan for compliance with FATCA that includes immediate and long term aspects.

High Opening of Accounts

• Secure the information• Research Date Base sources, AMI etc.• Approval of Accounts• Increase data fields in its IT systems

The direct depositors shall be responsible for providing the information; nevertheless Deceval must include fields in its data base for storing the FATCA data.

Medium Recourse of pre-existing accounts

• Identification of already existing customers• Electronic search of the status in the USA• Request and confirmation of new documentation

whenever it is necessary to determine the status

Direct depositors shall be responsible for their investors. Deceval must monitor the process for investors who receive direct payment from them. Deceval may provide access to amend any information on its investors, found in its data base.

High Withholding

• Withholding tax return• Conciliation• Correction of errors

Low Depository • Deposit the withholdings with the US Treasury USA withholding agent.

Low Reports• Form 8966 (to report account holders)• Form 1042-S (USA source payments)

USA withholding agent;.

DATES & MILESTONES TO BE REMEMBERED IN 2014

25 April

• Final registration date as an FFI.

02 June • Publication date of the FFI list by the IRS.

30 June• Signed agreements become effective.

01 July

• Implementation of processes for identifying US nationals.• Adjusted processes for compliance with the regulations

01 July

• Withholdings for non FFI, non NFFE, and recalcitrant perpetrators

01 July

• Final date for identifying “grandfathered obligations”, (Economic groups, head offices and subsidiaries)

31 Dec.

• Pre-existing accounts must be documented: Prima Facie – easily identified

THANKS