The Foreign Account Tax Compliance Act (FATCA) is a new U.S. law aimed at preventing tax avoidance by U.S. taxpayers through the use of offshore accounts. Effective January 1, 2015, FATCA imposes a30% withholding tax on all payments of U.S. source income, including (re)insurance premium, to all foreign non-FATCA compliant counterparties.
Under the IRS regulations, Intrepid is a withholding agent. We have an IRS imposed obligation under FATCA to identify the payee (the person to whom payment is made, regardless of beneficial ownership of the payment) and determine the payee’s FATCA status.
For Intrepid’s business, FATCA compliance falls into these general categories:
Intrepid Brokerage Services LLC – Intrepid needs to provide a W-9 payors whose payments will have a foreign destination.
London brokers – Intrepid uses two brokers for their business, BMS Group and THB Group.
Lloyd’s of London – Lloyd’s has negotiated group compliance with the IRS for all Lloyd’s companies.
London Company Markets – these independent (re)insurers need to individually comply.
- ACE Bermuda International Insurance Ireland Limited W-8BEN-E
- AIG Europe Ltd W-8BEN-E
- Aspen Insurance UK W-8BEN—E
- AXIS Specialty Europe SE W-8BEN-E
- Catlin Insurance Co. UK W-8BEN—E
- International Insurance Company of Hannover SE W-8BEN-E
- Lancashire Bermuda W-8BEN—E
- Lancashire UK W-8BEN—E
- QBE Insurance (Europe) Limited W-8BEN—E
- WRB Insurance Europe Ltd W-8BEN—E
There are links above for each of the above referenced forms. Please access the forms that you need.
The IRS FATCA regulations require that any payments made to non-FATCA compliant companies after January 1, 2015 will be subject to 30% withholding. Therefore, after January 1, 2015, Intrepid will only conduct business with foreign insurance companies and brokers that are FATCA compliant.
Contact us immediately if there are any questions about FATCA compliance.