The US "Qualified Intermediary" (QI) regime and FATCA

The objective of the course is to make participants familar with the US withholding tax rules as applicable to securities held through non-US financial institutions. We will focus in particular on the QI program and the new obligations imposed by FATCA.

The QI program is intended to ensure that US with- holding and reporting requirements with respect to securities held on non-US accounts are complied with whilst allowing qualifying foreign financial intermediaries to benefit from simplified documentation and reporting requirements.

The QI agreement imposes complex client identification, documentation, withholding and reporting obligations. It is key that these obligations are well understood by those in charge of their execution or audit.

In this context, the course aims to review these obligations in some detail by explaining the rules and by discussing a number of practical examples. We will also address the changes to these obligations as imposed by FATCA.

This course will be relevant to a large audience including:

• back- and front office staff of financial institutions and investment funds
• internal auditors
• tax advisors
• lawyers
• investments advisors
• private bankers
• ...

9h - 12h30

• The rates of US withholding tax applicable to the various income types as relevant to shares and debt instruments.
• The designation of the withholding agent for US tax purposes
• The QI regime
1. the concept and scope
2. client indentification ans documentation obligations
3. withholding obligations
4. reporting obligations
5. audit.

13h30 - 17h

• FATCA
1. objectives ans key principles
2. accredited foreign financial institutions
3. client identification and reporting obligations
4. withholding obligations
5. foreign non-financial institutions
6. abolition of foreign targeted exception to prohibition to issue securities in bearer form
7. electronic filing of Forms 1042-S
8. assimilation of certain dividend equivalent payments to US dividends.