• Service: Tax, Financial Services
  • Industry: Financial Services
  • Type: Newsletters
  • Date: 12/18/2012


Gerard Laures


Tel. +352 22 51 51 5549


Claude Poncelet


Tel. +352 22 51 51 5567


Frank Stoltz


Tel. +352 22 51 51 5520

FATCA e-alert - Issue 2012-15 

December 2012

Luxembourg Ministry of Finance announces negotiations for an intergovernmental agreement with the U.S.


On 17th December 2012, the Luxembourg Ministry of Finance issued a press release concerning the US Foreign Account Tax Compliance Act (FATCA).


Finance Minister Luc Frieden stated at an event on 11th of December that he decided to enter shortly into negotiations to conclude an intergovernmental agreement between Luxembourg and the U.S., in order to pave the way for the implementation of FATCA.


FATCA regulations were put in place to enable the U.S. tax authorities to tackle the fiscal evasion of Americans, who live or invest overseas. FATCA seeks to achieve this goal by forcing non-U.S. financial institutions into concluding agreements with the U.S. Internal Revenue Service, agreements that are imposing significant due diligence, withholding and reporting obligations.


An intergovernmental agreement between the Luxembourgish and US authorities should help to improve international tax compliance, to address the legal impediments to compliance and to simplify practical implementation of the FATCA framework.


The press release states that the first discussions were launched on 19th November 2012 in preparation for the negotiations, which should lead to a conclusion within the first half of 2013. An intergovernmental agreement would allow financial institutions to adapt, with all legal certainty, to the given legislation, and to guarantee the competitiveness of the Luxembourg financial sector.


For your reference


Newsletter Issue 2012-13 on the Model II


Newsletter Issue 2012-06 on the two versions of Model I



For further information, please do not hesitate to contact us.






Any tax advice in this communication is not intended or written by KPMG to be used, and cannot be used, by a client or any other person or entity for the purpose of (i) avoiding penalties that may be imposed on any taxpayer or (ii) promoting, marketing, or recommending to another party any matters addressed herein.

The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavour 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.


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