The US Treasury added the Bahamas, Bulgaria, Colombia, Cyprus and Sweden to its list of FATCA partner nations over the past week, as the global spread of intergovernmental agreements (IGAs) picks up steam ahead of the law’s key July 1 deadline. All five nations were recognized as FATCA partners because they had consented to the terms of IGAs “in substance.”
Belgium, previously on the list as an “in substance” partner, signed a Model 1(a) agreement, which requires reciprocal reporting by US institutions on the accounts they hold for Belgian persons.In total, 55 nations have enlisted as partners in implementing the wide-ranging tax evasion and financial account reporting law.
Two weeks ago, India and the Slovak Republic joined as FATCA partners with “in substance” agreements. The list of FATCA partners expanded dramatically on April 2, when the US Treasury Department deemed 22 nations as having IGAs in effect because they had already negotiated “agreements in substance.” In roughly one month, the US has added 32 nations to the list of jurisdictions that have agreed to implement the landmark Foreign Account Tax Compliance Act.
Just two months before the July 1, 2014, implementation date, the United States is engaged in active negotiations with other nations to reach Intergovernmental Agreements on the law and the 545-pages of US Internal Revenue Service regulations. IGAs delineate the terms of compliance by partner nations.
FATCA will affect all financial institutions in the world that maintain accounts for US persons, either directly in their core business or indirectly by the impact it will have on their correspondent banking relationships with other institutions.
Non-US institutions, referred to as “foreign financial institutions (FFIs)” in FATCA terminology, are nearing the May 5 cut-off date to register through the FATCA Registration Portal on its website. Registration by this date will ensure that FFIs are included in the first list of non-US institutions with Global Intermediary Identification Numbers (GIIN) that will be announced publicly in June. GIIN numbers serve to identify an institution and help confirm its status as FATCA compliant.
The ACFCS FATCA IGA Scoreboard continually updates the list of nations that have signed IGAs, entered into active negotiations with the US, or have shown little progress in reaching common ground with the US on FATCA implementation and compliance.
Nations with Model 1 IGAs with the United States
- Australia (April 2, 2014) *
- Bahamas (April 17, 2014)*
- Belgium (April 23, 2014) http://www.treasury.gov/resource-center/tax-policy/treaties/Documents/FATCA-Agreement-Belgium-4-23-2014.pdf
- Brazil (April 2, 2014) *
- British Virgin Islands (April 2, 2014) *
- Bulgaria (4-23-14)*
- Canada (February 05, 2014) http://www.treasury.gov/resource-center/tax-policy/treaties/Documents/FATCA-Agreement-Canada-2-5-2014.pdf
- Cayman Islands (November 29, 2013)http://www.treasury.gov/resource-center/tax-policy/treaties/Documents/FINAL%20US%20-%20Cayman%20Islands%20-%20Cayman%20alternat.pdf
- Colombia (April 24, 2014)*
- Costa Rica (November 26, 2013) http://www.treasury.gov/resource-center/tax-policy/treaties/Documents/FATCA-Agreement-Costa-Rica-11-26-2013.pdf
- Croatia (April 2, 2014) *
- Cyprus (4-22-2014)*
- Czech Republic (April 2, 2014) *
- Denmark (November 19, 2012) http://www.treasury.gov/resource-center/tax-policy/treaties/Documents/FATCA-Agreement-Denmark-11-19-2012.pdf
- Estonia (April 3, 2014) *
- Finland (March 5, 2014) http://www.treasury.gov/resource-center/tax-policy/treaties/Documents/FATCA-Agreement-Finland-3-5-2014.pdf
- France (November 14, 2013) http://www.treasury.gov/resource-center/tax-policy/treaties/Documents/BilateralAgreementUSFranceImplementFATCA.pdf
- Germany (May 31, 2013) http://www.treasury.gov/resource-center/tax-policy/treaties/Documents/FATCA-Agreement-Germany-5-31-2013.pdf
- Gibraltar (April 2, 2014) *
- Guernsey (December 13, 2013)http://www.treasury.gov/resource-center/tax-policy/treaties/Documents/FATCA-Agreement-Guernsey-12-13-2013.pdf
- Honduras (March 31 2014) http://www.treasury.gov/resource-center/tax-policy/treaties/Documents/FATCA-Agreement-Honduras-3-31-2014.pdf
- Hungary (February 4, 2014) http://www.treasury.gov/resource-center/tax-policy/treaties/Documents/FATCA-Agreement-Hungary-2-4-2014.pdf
- India (4-11-2014)*
- Ireland (January 23, 2013) http://www.treasury.gov/resource-center/tax-policy/treaties/Documents/FATCA-Agreement-Ireland-1-23-2013.pdf
- Israel (4-28-2014)*
- Isle of Man (December, 13, 2013) http://www.treasury.gov/resource-center/tax-policy/treaties/Documents/FATCA-Agreement-Isle-of-Man-12-13-2013.pdf
- Italy (January 10, 2014) http://www.treasury.gov/resource-center/tax-policy/treaties/Documents/FATCA-Agreement-Italy-1-10-2014.pdf
- Jamaica (April 2, 2014) *
- Jersey (December 13, 2013) http://www.treasury.gov/resource-center/tax-policy/treaties/Documents/FATCA-Agreement-Jersey-12-13-2013.pdf
- Kosovo (April 2, 2014) *
- Latvia (April 2, 2014) *
- Liechtenstein (April 2, 2014) *
- Lithuania (April 2, 2014) *
- Luxembourg (March 28, 2014) http://www.treasury.gov/resource-center/tax-policy/treaties/Documents/FATCA-Agreement-Luxembourg-3-28-2014.pdf
- Malta (December 16, 2013) http://www.treasury.gov/resource-center/tax-policy/treaties/Documents/FATCA-Agreement-Malta-12-16-2013.pdf
- Mauritius (December 27, 2013) http://www.treasury.gov/resource-center/tax-policy/treaties/Documents/FATCA-Agreement-Mauritius-12-27-2013.pdf
- Mexico (November 19, 2012) http://www.treasury.gov/resource-center/tax-policy/treaties/Documents/FATCA-Agreement-Mexico-11-19-2012.pdf
- Netherlands (December 18, 2013) http://www.treasury.gov/resource-center/tax-policy/treaties/Documents/FATCA-Agreement-Netherlands-12-18-2013.pdf
- Norway (April 15, 2013) http://www.treasury.gov/resource-center/tax-policy/treaties/Documents/FATCA-Agreement-Norway-4-15-2013.pdf
- New Zealand (April 2, 2014) *
- Poland (April 2, 2014) *
- Portugal (April 2, 2014) *
- Qatar (April 2, 2014) *
- Romania (April 2, 2014) *
- Slovak Republic (4-11-2014)
- Slovenia (April 2, 2014) *
- South Africa (April 2, 2014) *
- South Korea (April 2, 2014) *
- Spain (May 14, 2013) http://www.treasury.gov/resource-center/tax-policy/treaties/Documents/FATCA-Agreement-Spain-5-14-2013.pdf
- Sweden (4-24-2014)*
- United Kingdom (September 12, 2012) http://www.treasury.gov/resource-center/tax-policy/treaties/Documents/FATCA-Agreement-UK-9-12-2012.pdf
Nations with Model 2 IGAs with the United States
- Austria (April 2, 2014) *
- Bermuda (December 19, 2013) http://www.treasury.gov/resource-center/tax-policy/treaties/Documents/FATCA-Agreement-Bermuda-12-19-2013.pdf
- Chile (March 5, 2014) http://www.treasury.gov/resource-center/tax-policy/treaties/Documents/FATCA-Agreement-Chile-3-5-2014.pdf
- Japan (June 11, 2013) http://www.treasury.gov/resource-center/tax-policy/treaties/Documents/FATCA-Statement-Japan-6-11-2013.pdf
- Switzerland (February 14, 2013) http://www.treasury.gov/resource-center/tax-policy/treaties/Documents/FATCA-Agreement-Switzerland-2-14-2013.pdf
*Indicates jurisdictions with FATCA “agreements in substance” that the US Treasury Department will consider to be IGAs in force.
Next Likely FATCA US IGA Signatory Nations
The following nations and jurisdictions are believed to be engaged actively in negotiations with the United States on a FATCA IGA.
- United Arab Emirates
Editor’s Note: Nations that sign FATCA “Intergovernmental Agreements” with the United States adopt Model I or Model II IGAs. Model I IGAs establish procedures for “Foreign Financial Institutions” (FFI) to report financial account information about US persons to the pertinent local authority, which transmits the information to the US IRS. Under Model II agreements, an FFI reports directly to the IRS.