The Treasury Department has posted updated model intergovernmental agreements (model IGAs) on its FATCA-dedicated webpage.
The model IGAs and annexes are all dated 9 May 2013, and the updated versions are:
- Reciprocal Model 1A agreement (preexisting tax information exchange agreement (TIEA) or income tax treaty (double tax convention or DTC))
- Nonreciprocal Model 1B agreement (preexisting TIEA or DTC)
- Nonreciprocal Model 1B agreement (no TIEA or DTC)
- Model 2 agreement (preexisting TIEA or DTC)
- Model 2 agreement (no TIEA or DTC)
- Annex I to Model 1 agreement
- Annex I to Model 2 agreement
- Annex II to Model 1 agreement
- Annex II to Model 2 agreement
The main changes concern Annex II. Agreements under Annex II to the model IGAs, thus far, have been separately negotiated by each country. Annex II contains the list of products and entities that are “carved out” of the FATCA requirements because they pose a low risk. Treasury now has a template for Annex II (one that is modeled after the carve outs in the regulations). Also, the competent authorities can agree to include other similar ones. Treasury found that the separate negotiations were slowing down the process, and the updated May 2013 versions are intended to address this situation.
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.