The US Treasury Department and IRS have announced that Foreign Financial Institutions (“FFIs”) have an additional 10 days to complete their FATCA registration, in order to be included on the first IRS FFI list. This pushes back the registration deadline from 25 April 2014 to 5 May 2014 to obtain a Global Intermediary Identification Number (“GIIN”), and be included on the 2 June 2014 IRS FFI list. Please click here to view the announcement.
The Announcement also indicates that countries that have reached “agreements in substance” with the US on the terms of an Intergovernmental Agreement (“IGA”) can be treated as having an IGA in effect until 31 December 2014. However after 31 December 2014, only signed IGAs will be considered to be in effect. This treatment will be available to jurisdictions that:
- Reach “agreements in substance” prior to 1 July 2014; and
- Consent to having the status of their agreements disclosed.
To date the US has signed 26 IGAs and on 2 April the US Treasury Department announced that an additional 19 jurisdictions will be treated as having an IGA in effect under the “agreements in substance” approach, bringing the total number of jurisdictions that are treated as having IGAs in effect for 2014 to 45. Please click here to view list of 45 jurisdictions.
This is a helpful clarification for entities that are tax resident in countries that have not yet signed an IGA, but are aware that an IGA has been substantially concluded and so allows these entities to register if they want to be included on the first IRS FFI list.
If you have any questions or would like assistance with registering for a GIIN, please contact Kevin Cohen, Rachel Hewitt or another member of our KPMG FATCA team.