A general guide in determining the application of FATCA to non-US funds.

I. What Is FATCA? FATCA refers to the US Foreign Account Tax Compliance Act (contained in Sections 1471 through 1474 of the US Internal Revenue Code). FATCA was enacted in 2010 in order to reduce perceived offshore tax evasion by US persons holding assets through offshore accounts that were not subject to US information reporting to the Internal Revenue Service (“IRS”) under the existing reporting system. As discussed below, FATCA generally requires certain foreign (i.e., non-US) entities that are not exempt from or deemed to be compliant with FATCA to either register with the IRS and conduct certain diligence and reporting regarding their investors and account holders or be subject to 30% US withholding tax on certain US source income paid to the entity. Many countries, including Japan, have entered into intergovernmental agreements (“IGAs”) with the United States that modify the basic FATCA rules set forth in the US Treasury regulations promulgated under FATCA.