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.
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.
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.
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.
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”
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