Tax & Accounting Blog

FATCA Intergovernmental Agreements: Netherlands and New Zealand Pursuing Agreements with the U.S.

International Reporting & Compliance, ONESOURCE, Tax Information Reporting, Trust Tax, W-8 & W-9 Foreign Reporting, Withholding Management November 5, 2012

New Zealand Revenue Minister Peter Dunne has announced that his government intends to negotiate a FATCA tax information agreement with the United States, under which New Zealand financial institutions will be able to report information on their United States clients, as sought under the U.S. Foreign Account Tax Compliance Act, to New Zealand Inland Revenue which will submit the data to the IRS.  “This agreement will mean we can help to support FATCA’s objectives and play our part in dealing with international tax evasion,” Mr. Dunne said, “while at the same time ensuring that the compliance costs for New Zealand institutions are manageable.”  The Dutch State Secretary for Finance, Jan Kees de Jager, recently indicated that the Netherlands intends to sign a FATCA agreement with the United States.  Model agreements for the sharing of information about reportable accounts of U.S. persons were issued by the U.S. Department of Treasury earlier this year with the endorsement of France, Germany, Italy, Spain and the United Kingdom.  The first reciprocal agreement for FATCA partnership was signed by the United Kingdom and the United States in September 2012.  Japan and Switzerland have issued joint statements with the United States expressing the intention to pursue a framework for FATCA information sharing compliance, and the government of Australia announced that it is exploring the feasibility of a reciprocal FATCA agreement with the United States.