U.S.A.: Release of an Intergovernmental Agreement model for FATCA
Following the Joint Statements that were issued by the United States in February with the G5 nations, and in June with Japan and Switzerland, the U.S. Treasury Department has just published an intergovernmental agreement (IGA) model to implement the information reporting and withholding tax provisions known as the Foreign Account Tax Compliance Act (FATCA).
The publication of this first IGA model was accompanied by a joint communiqué with France, Germany, Italy, Spain and the United Kingdom.
Two versions of the IGA have been issued: one reciprocal and one non-reciprocal. Both versions establish a framework for implementing FATCA with an automatic exchange of information.
In addition, a second IGA model is under negotiation (between Switzerland and Japan on one side, and the United States on the other) that would be applied to countries that are in favour of an on-demand rather than an automatic exchange of information.
The main aim of the IGA, whether with automatic or on-demand exchange of information, is to reduce the compliance burden of FATCA on financial institutions as well as addressing country-specific legal issues. It is therefore expected to serve as a model for other countries.
We will continue to monitor the implementation of FATCA and will provide more information as it becomes available.
Further information
For further information, customers may contact the Clearstream Banking1 Tax Help Desk on:
| Luxembourg | Frankfurt | |
| Email: | tax@clearstream.com | tax@clearstream.com |
| Telephone: | +352-243-32835 | +49-(0) 69-2 11-1 3821 |
| Fax: | +352-243-632835 | +49-(0) 69-2 11-61 3821 |
or Clearstream Banking Customer Service or their Relationship Officer.
1. Clearstream Banking refers collectively to Clearstream Banking AG, registered office at 61, Mergenthalerallee, 65760 Eschborn, Germany and registered in the Register B of the Amtsgericht Frankfurt am Main, Germany under number HRB 7500 (CBF) and Clearstream Banking, société anonyme, registered office at 42, avenue John F. Kennedy, L-1855 Luxembourg, and registered with the Luxembourg Register of Commerce and Companies under number B-9248 (CBL).
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