As the July 1st FATCA deadline looms in just 138 days, institutions are entering the final countdown before the landmark tax information reporting dragnet comes into effect. The US Treasury Department is still actively courting other nations to sign on as FATCA partners through “Intergovernmental Agreements,” or IGAs. With Canada and Hungary joining the ranks of FATCA partners over the past two weeks, 21 nations have now agreed to cooperate with the US on the law’s implementation and enforcement.
During the first week of February, the US signed Model I agreements with Canada and Hungary. Canada signed a reciprocal Model I IGA, meaning that US institutions will now have obligations to report certain information on accounts they hold for Canadian persons to the IRS, which will then pass it on to that country’s tax authorities. Canada’s IGA is particularly notable for US institutions, as large numbers of Canadian persons hold accounts within the US.
Between December of last year and January of this year, the US signed a record 7 IGAs. Three were with the British islands known as Crown dependencies – Guernsey, Jersey and the Isle of Man. In mid-December, the US Treasury Department announced signed agreements with Malta, the Netherlands and Bermuda, and late last month Italy inked a reciprocal Model 1 agreement. 19 jurisdictions have chosen Model I agreements, and 3 nations have chosen Model II agreements.
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.
Nations That Signed IGAs with the US as of February 11, 2014
Model 1 IGAs
- Canada (February 05, 2014)
- 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
- 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
- Italy (January 10, 2014) http://www.treasury.gov/resource-center/tax-policy/treaties/Documents/FATCA-Agreement-Italy-1-10-2014.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
- 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
- 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
- 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
IGA Negotiations Underway
- New Zealand
- Slovak Republic
- South Africa
- South Korea
- United Arab Emirates
Editor’s Note: Nations that sign FATCA “Intergovernmental Agreements” with the United States adopt Model I or Model II versions. 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.