The world’s second most populous nation joined with the US last week as a partner in the implementation of the Foreign Account Tax Compliance Act, as India consented “in substance” to the terms of an intergovernmental agreement (IGA). The Slovak Republic also reached an “in substance” agreement, bringing the total number of FATCA partner jurisdictions to 50.
In just one month, the US has added 26 nations to the list of jurisdictions that have agreed to implement the landmark Foreign Account Tax Compliance Act. 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.”
Less than three 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 United States financial institutions and the financial markets in general.
The IRS has also granted a 10-day extension, from April 25 to May 5, for “foreign financial institutions (FFIs)” to register through the FATCA Registration Portal on its website. Registration will allow FFIs to be included in the list of non-US institutions that have been given a so-called Global Intermediary Identification Number (GIIN) that will be announced publicly in June.
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) *
- Belgium (April 2, 2014) *
- Brazil (April 2, 2014) *
- British Virgin Islands (April 2, 2014) *
- 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
- 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) *
- 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
- 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
- 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.
- Slovak Republic
- 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.
The IRS has established a FATCA online “Portal” by which FFIs may register and indicate their willingness to comply. The IRS will issue to registered FFI a “Global Intermediary Identification Number” (GIIN), which FFIs must have to submit account information about their US customers to the IRS.