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  • Service: Tax, Financial Services
  • Industry: Financial Services, Banking
  • Type: Newsletters
  • Date: 5/21/2013

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Gerard Laures

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Tel. +352 22 51 51 5549

gerard.laures@kpmg.lu

 

Claude Poncelet

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Frank Stoltz

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FATCA e-alert Issue 2013-11 

May 2013

Spain signs IGA - Singapore to sign Model 1 IGA - New Zealand to start negotiations with the U.S. - EU council supports information exchange

 

Authorities in Spain and Singapore have signed agreements with the United States to implement the U.S. Foreign Account Tax Compliance Act (FATCA) provisions.

 

Under these agreements, financial institutions in Spain, Singapore and the United States will communicate information to their respective tax authorities regarding financial accounts maintained by their residents, and then this information will be automatically exchanged between the tax authorities using a standardized procedure.


Also, the Economic and Financial Affairs Council of the European Union announced its support for automatic tax information exchange programs, similar to the FATCA regime.

 

Spain

 

According to a May 2013 release (Spanish) (PDF, 64 KB), the Spanish Finance Minister (Ministro de Hacienda y Administraciones Públicas) and U.S. Ambassador on 14 May signed an agreement based on an intergovernmental model agreement (IGA) issued by the United States in July 2012 and endorsed by Spain and four other European countries (France, Germany, Italy, and the United Kingdom).
Text of the signed agreement is not yet publicly available.

 

Singapore

 

The Inland Revenue Authority of Singapore issued a 14 May release announcing that an intergovernmental agreement (IGA) will be concluded with the United States to facilitate compliance with FATCA by financial institutions in Singapore.


The IGA is in the form of the Model 1 IGA, which will allow for information to be exchanged between the Singapore and U.S. Tax Agencies, and thus help ease the compliance burden of financial institutions in Singapore with FATCA.

 

New Zealand

 

The Government of New Zealand announced the start of negotiations for an agreement with the United States, to allow for an exchange of financial information between the countries’ tax authorities, pursuant to the U.S. Foreign Account Tax Compliance Act (FATCA) legislation.

 

According the New Zealand 14 May 2013 release, under the agreement, instead of New Zealand businesses having to provide information directly to the U.S. Authorities, it is envisioned that the FATCA agreement would allow them to provide the information to the New Zealand Inland Revenue Department which, in turn, would provide the information to the U.S. Tax Authorities.

 

Based on the New Zealand announcement, the agreement would be intended reciprocal, so the United States would also provide New Zealand with information about New Zealand investments in the United States.

 

EU support for FATCA

 

The EU Council met on 14 May 2013, and released a statement (PDF, 94 KB) noting that:

 

  • EU Member States are negotiating inter-governmental agreements with third countries to exchange a large scope of information on an automatic basis.
  • France, Germany, Italy, Spain, and the UK have agreed to work on a pilot multilateral exchange facility using the model agreed with the United States as the basis for this multilateral exchange, with the aim of contributing to the creation of a new global standard.

 

British Overseas Territories and the Isle of Man have committed to joining the pilot initiative, and Guernsey has expressed “strong interest”

 

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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