U.S.A.: Luxembourg chooses FATCA IGA Model I
Luxembourg’s Finance Minister announced yesterday that, in the context of its negotiations with the U.S.A. with regard to the Foreign Account Tax Compliance Act (FATCA), Luxembourg has chosen Intergovernmental Agreement (IGA) Model I to allow for an automatic exchange of information between the Luxembourg and U.S. fiscal authorities on bank accounts held in Luxembourg by citizens and residents of the U.S.A.
This decision reflects Luxembourg’s April 2013 declaration that it will introduce, on 1 January 2015 and within the scope of the 2003 EU Savings Directive, provisions for the automatic exchange of information within the European Union.
In its desire to see the same conditions apply to all competing financial centres and to see the automatic exchange of information accepted as the international standard, Luxembourg agreed, on 14 May 2013, to grant the European Commission a mandate to negotiate with Andorra, Liechtenstein, Monaco, San Marino and Switzerland.
The above information is not intended to be exhaustive. We will continue to monitor FATCA related developments and will provide further relevant information as it becomes available.
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