• 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.


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

©2014 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative ("KPMG International"), a Swiss entity. All rights reserved.

The KPMG logo and name are trademarks of KPMG International.

KPMG International is a Swiss cooperative that serves as a coordinating entity for a network of independent member firms. KPMG International provides no audit or other client services. Such services are provided solely by member firms in their respective geographic areas. KPMG International and its member firms are legally distinct and separate entities. They are not and nothing contained herein shall be construed to place these entities in the relationship of parents, subsidiaries, agents, partners, or joint venturers. No member firm has any authority (actual, apparent, implied or otherwise) to obligate or bind KPMG International or any member firm in any manner whatsoever.

The information contained in herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation.

Direct comments, including requests for subscriptions, to
For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at:

+ 1 202 533 4366

1801 K Street NW
Washington, DC 20006.


Share this

Share this


Subscribe to receive the latest TaxNewsFlash email alerts (you must select the option for TaxNewsFlash)

Already a Subscriber? Login

Not a member? Subscribe now