Global

Details

  • Service: Tax, International Executive Services, Global Compliance Management Services, International Tax
  • Type: Regulatory update
  • Date: 9/4/2013

Germany - Status of FATCA intergovernmental agreement implementing legislation 

September 4: Legislation to implement a FATCA intergovernmental agreement between Germany and the United States is pending publication in the German federal law gazette.

Germany’s lower house (Bundestag) passed the legislation to implement the FATCA agreement in late June 2013, and the upper house (Bundesrat) approved the legislation in early July 2013. However, the law that would implement the FATCA intergovernmental agreement has yet to be published (promulgated) in the official gazette.


The FATCA agreement is scheduled to enter into force on the date of Germany’s written notification to the United States, that Germany has completed its necessary internal procedures for entry into force of this agreement.

Background

The Foreign Account Tax Compliance Act (FATCA) agreement signed by Germany and the United Sates in May 2013 effectively releases financial institutions in Germany from having to conclude separate agreements with the IRS, pursuant to the U.S. FATCA regulations. Read TaxNewsFlash-United States: FATCA - Text of IGA with Germany


Instead, Germany will undertake to collect information on accounts kept for U.S. account holders by financial institutions based in Germany and automatically disclose such information to the IRS.


In exchange, the United States will make available to Germany information obtained by the IRS from U.S. financial institutions relating to interest and dividend income.


Read a September 2013 report [PDF 1.45 MB] prepared by the KPMG member firm in Germany: German Tax Monthly (September 2013)

Other topics

Also discussed in the KPMG report:


  • Draft decree on the attribution of profits to permanent establishments
  • Federal Tax Court judgments on write-downs to a lower going-concern value and real estate tax when “unification of shares” is reversed
  • Taxation of sale of dividend rights by non-resident taxpayers
  • Continued application of investment taxation law
  • Increased legal and notary fees, effective 1 August 2013



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