CLIENT MEMO - FATCA for Private Equity and Hedge Funds: Getting Started

Back in 2010, Congress adopted several pieces of legislation designed to ferret out US investors hiding their money offshore. A portion of that legislation is known as the Foreign Account Tax Compliance Act, or FATCA. In essence, FATCA imposes a new 30% withholding tax on certain payments to foreign persons.

 FATCA will impact both offshore and onshore private equity and hedge funds, in different ways. Despite the fact that there are still missing pieces to the FATCA regulatory regime, it would be prudent for fund sponsors to begin the process of registering for FATCA. To learn more about FATCA, registration and timing, please click here.