This update provides information on the issuance of IRS Notice 2013-43, “Revised Timeline and Other Guidance Regarding the Implementation of FATCA”, which delays the commencement of FATCA by a further six months and defers the opening of the FATCA registration portal until late August 2013.
The Notice provides for the extended deadlines, as well as additional guidance with respect to the treatment of Financial Institutions that are located in partner jurisdictions that have signed an intergovernmental agreement (“IGA”), but have not yet brought the IGA into force.
- The commencement of FATCA will be postponed by six months until 1 July 2014, as opposed to 1 January 2014.
- New Account opening procedures will apply to accounts opened on or after 1 July 2014, as opposed to 1 January 2014, with all accounts maintained as of 30 June 2014 being classified as “Preexisting Accounts”.
- Reporting will no longer be required for the 2013 calendar year, but only with respect to the 2014 calendar year onwards.
- The IRS portal is now expected to be made available for Foreign Financial Institutions (“FFIs”) to register and obtain a Global Intermediary Identification Number (“GIIN”) on 19 August 2013. The IRS intends to publish the first FFI List by 2 June 2014 (to be updated on a monthly basis thereafter). An FFI must register for a GIIN by 25 April 2014 to be included on the 2 June 2014 list.
By virtue of the favoured nations clause included in Ireland’s IGA, the IRS has confirmed that these more favourable provisions will apply to Ireland’s IGA. It is also envisaged that the Regulations and Guidance Notes implementing Ireland’s IGA will be amended to reflect the revised deadlines and reporting requirements.
Treatment of Financial Institutions Operating in Jurisdictions with Signed IGA
A jurisdiction will be treated as having an effective IGA if it is listed on the US Department of the Treasury website as a jurisdiction with an effective IGA. This includes jurisdictions that have signed, but have not yet brought into force an IGA.
Currently, Denmark, Germany, Ireland, Japan, Mexico, Norway, Spain, Switzerland and the UK have effective IGAs posted on the Treasury website.