The Washington-based Council of Insurance Agents & Brokers (CIAB) is in the final stages of development of the online W-8BEN-E Portal.
The website will house foreign insurers’ W-8BEN-E Certificate of Status of Beneficial Owner for United States Tax Withholding and Reporting forms so that brokers can access the ones they need when they need them.
The portal has been introduced to help foreign insurers deal with the ramifications of the Foreign Account Tax Compliance Act (FATCA).
Only weeks remain until FATCA’s 1 July arrival, which will inevitably change the way foreign insurers do business with US insurance brokers.
"Our industry is facing a tight deadline with July 1 right around the corner and we’re doing all we can to help educate and prepare brokers and foreign insurers alike for this massive change in process," said Ken Crerar, president and CEO of The Council.
The law will require brokers to document that every non-US financial institution they do business with is FATCA-compliant or FATCA exempt.
Demonstrating compliance will require a certificate to be collected and stored from every non-US financial institution involved with a policy with even the slightest exposure to US risk.
"FATCA has grabbed the attention of the world brokerage community, but a lot of confusion remains," said Crerar.
"In an effort to simplify the form exchange between US brokers and foreign insurers, we’re working hard to build the most complete clearinghouse for these [Internal Revenue Service] forms."
Currently, the W-8BEN-E Portal allows visitors to register for FATCA email updates, obtain news articles and download a CIAB webinar recording about the impact of the new law.
A complete set of frequently asked questions compiled by the council’s general counsel at Steptoe & Johnson LLP will be posted when the Internal Revenue Service releases its final instructions.
