{"id":43982,"date":"2017-11-26T16:11:56","date_gmt":"2017-11-26T14:11:56","guid":{"rendered":"https:\/\/newserver.fyb.de\/produkt\/fatca-impact-of-us-tax-regulations-on-german-private-equity-companies\/"},"modified":"2017-11-26T16:11:56","modified_gmt":"2017-11-26T14:11:56","slug":"fatca-impact-of-tax-us-regulations-on-german-private-equity-companies","status":"publish","type":"product","link":"https:\/\/www.fyb.de\/en\/produkt\/fatca-impact-of-tax-us-regulations-on-german-private-equity-companies\/","title":{"rendered":"FATCA \u2014 Impact of US Tax Regulations on German Private Equity Companies"},"content":{"rendered":"

Dr. Chris\u00adtoph Ludwig<\/strong> \u2014 Tax Consul\u00adtant and Part\u00adner Braun Leber\u00adfin\u00adger Ludwig Weidin\u00adger, Munich<\/p>\n

Thomas Unger<\/strong> \u2014 Tax Consul\u00adtant and Part\u00adner Braun Leber\u00adfin\u00adger Ludwig Weidin\u00adger, Munich<\/p>\n

 <\/p>\n","protected":false},"excerpt":{"rendered":"

With the Foreign Account Tax Compli\u00adance Act (FATCA), the U.S. Inter\u00adnal Reve\u00adnue Service (IRS) inter\u00advenes directly in all tran\u00adsac\u00adtions with U.S. sources. Accor\u00addin\u00adgly, it is expec\u00adted that by mid-2013 all private equity compa\u00adnies that receive proceeds from U.S. sources will also have to enter into an agree\u00adment with the IRS and report the U.S. persons invol\u00adved as well as certain rela\u00adted data or submit a corre\u00adspon\u00adding nega\u00adtive declaration.<\/strong><\/p>\n

If the afore\u00admen\u00adtio\u00adned requi\u00adre\u00adments are not met, the respec\u00adtive inves\u00adtor is at risk of signi\u00adfi\u00adcant disad\u00advan\u00adta\u00adges. Accor\u00adding to the current status, as of 01.01.2015, a 30% \u201c(penalty) with\u00adhol\u00adding tax\u201d will be with\u00adheld on reflows (i.e. not only on income, but now also on sales proceeds in addi\u00adtion to inte\u00adrest and divi\u00addends) from the USA. Accor\u00adding to current know\u00adledge, this cannot be reim\u00adbur\u00adsed subse\u00adquently. In this respect, there would then be a defi\u00adni\u00adtive taxa\u00adtion, which would possi\u00adbly even affect all share\u00adhol\u00adders of the respec\u00adtive private equity company (PE company), regard\u00adless of whether US taxpay\u00aders are invol\u00adved or not.<\/p>\n

The aim of FATCA is the complete and seam\u00adless recor\u00adding of U.S. taxpay\u00aders with their world\u00adwide, i.e. in parti\u00adcu\u00adlar their foreign income. To this end, all accounts and cust\u00adody accounts indi\u00adrectly held by U.S. persons are now to be recor\u00added and report\u00ading of all invest\u00adments, inclu\u00adding the resul\u00adting sales proceeds, is to be manda\u00adtory, regard\u00adless of whether they are mana\u00adged or held in the U.S. or outside.<\/p>\n

The so-called QI (Quali\u00adfied Inter\u00adme\u00addiary) regime, which has been in place since 2001, has proven to be insuf\u00adfi\u00adci\u00adent in this context. Accor\u00addin\u00adgly, banks were alre\u00adady requi\u00adred to report U.S. income (inte\u00adrest, divi\u00addends, but not capi\u00adtal gains) gene\u00adra\u00adted by U.S. persons. By contrast, sepa\u00adrate report\u00ading of income from non\u2011U.S. sources and assets held only indi\u00adrectly by U.S. persons through, for exam\u00adple, non-trans\u00adpa\u00adrent struc\u00adtures was not previously required.<\/p>\n

History of origins<\/strong><\/p>\n","protected":false},"featured_media":18969,"comment_status":"open","ping_status":"closed","template":"","meta":{"wp_typography_post_enhancements_disabled":false},"product_brand":[],"product_cat":[2452,2454,2464,2509],"product_tag":[1469,1764,2093,2094,2095,2099],"class_list":{"0":"post-43982","1":"product","2":"type-product","3":"status-publish","4":"has-post-thumbnail","6":"product_cat-ebook-en","7":"product_cat-dr-christoph-ludwig","8":"product_cat-thomas-unger-en","9":"product_cat-fyb-2012-2","10":"product_tag-thomas-unger-en","11":"product_tag-christoph-ludwig-en","12":"product_tag-fatca-en","13":"product_tag-us-regulations","14":"product_tag-withholding-tax","15":"product_tag-qualified-intermediary-regime-en","16":"pa_sprache-english-3","17":"pa_sprache-german","19":"first","20":"outofstock","21":"taxable","22":"shipping-taxable","23":"purchasable","24":"product-type-variable"},"yoast_head":"\nFATCA - Impact of US Tax Regulations on German Private Equity Companies - FYB Financial Yearbook<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.fyb.de\/en\/produkt\/fatca-impact-of-tax-us-regulations-on-german-private-equity-companies\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"FATCA - Impact of US Tax Regulations on German Private Equity Companies - FYB Financial Yearbook\" \/>\n<meta property=\"og:description\" content=\"With the Foreign Account Tax Compliance Act (FATCA), the U.S. Internal Revenue Service (IRS) intervenes directly in all transactions with U.S. sources. 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The aim of FATCA is the complete and seamless recording of U.S. taxpayers with their worldwide, i.e. in particular their foreign income. To this end, all accounts and custody accounts indirectly held by U.S. persons are now to be recorded and reporting of all investments, including the resulting sales proceeds, is to be mandatory, regardless of whether they are managed or held in the U.S. or outside. The so-called QI (Qualified Intermediary) regime, which has been in place since 2001, has proven to be insufficient in this context. Accordingly, banks were already required to report U.S. income (interest, dividends, but not capital gains) generated by U.S. persons. By contrast, separate reporting of income from non-U.S. sources and assets held only indirectly by U.S. persons through, for example, non-transparent structures was not previously required. 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