The United Kingdom released Guidance Notes and draft regulations covering internal UK administration of rules for identification and certification of financial institutions, classification and reporting of accounts, and reporting of certain accountholder information under the intergovernmental agreement (IGA) with the United States for implementation of the U.S. Foreign Account Tax Compliance Act. Under the IGA, financial institutions pass information to HM Revenue & Customs (HMRC) who will then automatically exchange this information with the IRS. FATCA partner countries generally need to adopt statutory or regulatory provisions to facilitate FATCA implementation.
Germany and the U.S. signed their FATCA IGA, and also a Declaration of Understanding that German financial institutions will register with the U.S. Internal Revenue Service and apply for a Global Intermediary Identification Number (GIIN) issued by the IRS to serve as the institution identifying number required under the IGA. Draft legislation will be addressed in the German parliament with the goal of having the IGA and legislation enter into force no later than September 30, 2015; however if there were to be a delay (the U.S. received credible assurances that it would be resolved by Germany by September 30, 2016), the U.S. could continue to apply FATCA to German financial institutions.
The Grand Duchy of Luxembourg announced that Luxembourg has chosen a Model 1 intergovernmental agreement (IGA) for the automatic exchange of information with the United States under FATCA on bank accounts held in Luxembourg by citizens and tax residents of the U.S.
Switzerland, which signed a FATCA IGA with the United States earlier this year, recently signed a Memorandum of Understanding with the U.S. Department of the Treasury clarifying some technical and administrative details of implementation tax information sharing under the IGA.
The government of Jamaica has approved entering into negotiation with the United States for a Model 1 IGA to facilitate the implementation of FATCA. Jamaican financial institutions that are affected by FATCA will make their reports regarding tax information on U.S. persons to a Jamaican Central Authority, which will then be responsible for transmitting the information to the U.S. tax authorities.
Marianne Couch has authored a number of posts on FATCA related updates. Visit her archive page to view all of her FATCA updates.
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