The Potential Impact of FATCA on Pension Funds

The Foreign Account Tax Compliance Act (FATCA) is a complex, new reporting and withholding stricture that is being enacted to encourage residents of the United States to disclose their offshore accounts, investments, and income. FATCA imposes material U.S. tax documentation, reporting, and withholding requirements on foreign financial institutions, which includes foreign pension funds.

In this five-minute podcast, Dave Neuenhaus, KPMG LLP principal and global lead for KPMG's FATCA-related services, examines the potential impact on pension funds and possible exemptions, as presented in the FATCA proposed regulations released by the U.S. Department of Treasury and Internal Revenue Service on February 8, 2012.

For more detail on FATCA for pension funds and qualifying for a pension fund exemption and the exemption testing, read FATCA: Challenges and Issues for Pension Funds.