With just four months left until the implementation of the Foreign Account Tax Compliance Act (FATCA), the United States is conducting negotiations with other nations to reach “Intergovernmental Agreements” or IGAs that delineate the terms of those nations’ compliance with FATCA. As the clock ticks, the list of nations that signed off on agreements with the US keeps growing.
FATCA will impact all financial institutions, either directly in their core business or indirectly through relationship with other financial institutions and the financial market.
In the first week of March, the US signed a Model I agreement with Finland and a Model II agreement with Chile. Between December and the first two months of 2014, the US signed a record 12 agreements. So far 20 jurisdictions have signed Model I agreements and four have signed Model II agreements with the US government.
This ACFCS FATCA United States IGA Scoreboard will continually update the status of nations that have signed IGAs, entered meaningful negotiations with the US, or remain nowhere close to common ground on FATCA.
Model 1 IGA
- 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
- Denmark (November 19, 2012) http://www.treasury.gov/resource-center/tax-policy/treaties/Documents/FATCA-Agreement-Denmark-11-19-2012.pdf
- 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
- Guernsey (December 13, 2013)http://www.treasury.gov/resource-center/tax-policy/treaties/Documents/FATCA-Agreement-Guernsey-12-13-2013.pdf
- Hungary (February 4, 2014) http://www.treasury.gov/resource-center/tax-policy/treaties/Documents/FATCA-Agreement-Hungary-2-4-2014.pdf
- 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
- Jersey (December 13, 2013) http://www.treasury.gov/resource-center/tax-policy/treaties/Documents/FATCA-Agreement-Jersey-12-13-2013.pdf
- Malta (December 16, 2013) http://www.treasury.gov/resource-center/tax-policy/treaties/Documents/FATCA-Agreement-Malta-12-16-2013.pdf
- Mauritus (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
- 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
Model 2 IGA
- 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
Next Likely FATCA US IGA Signatories
- New Zealand
- Slovak Republic
- South Africa
- United Arab Emirates
Editor’s Note: Nations that sign FATCA “Intergovernmental Agreements” with the United States adopt Model I or Model II IGAs. Respectively, they establish procedures by which “Foreign Financial Institutions” (FFI) report financial account and tax information about US persons to the pertinent local authority, which transmits the information to the IRS, or, under a Model II agreement, 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). FFIs must have this number to submit account and tax information about their US customers to the IRS.
Exploring IGA options:
Bahrain, Brazil, British Virgin Islands, Curazao, Czech Republic, Gibraltar, India, Lebanon, Mauiritus, Peru, Romania, Russia, Seychelles, St. Maarten, Slovenia and Taiwan.