• Service: Tax, Financial Services
  • Industry: Financial Services, Banking
  • Type: Newsletters
  • Date: 6/5/2013


Gerard Laures


Tel. +352 22 51 51 5549


Claude Poncelet


Tel. +352 22 51 51 5567


Frank Stoltz


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FATCA e-alert Issue 2013-15 

June 2013

IGA Model Annex II Revised


Earlier in May, the U.S. Treasury released new model intergovernmental agreements (IGAs) and posted them to its internet web site. The models were to provide a standard for each type of IGA released to date for negotiation between the United States and another country as an alternative to compliance under the U.S. Foreign Account Tax Compliance Act (FATCA) regulations.


In addition, standardized annexes were released to address the need for baselines, especially for Annex II. This week, the U.S. Treasury released revised Annex II for both Model I and II IGAs.


The new annexes provide summaries from the final FATCA regulations of exempt beneficial owners and deemed-compliant foreign financial institutions (FFIs) to which the U.S. Treasury agrees on the status. The IGA model annex states that it is no longer necessary to separately list in Annex II future IGA classes of entities or accounts that are addressed by the descriptions now provided. In addition, the United States Treasury no longer intends to list nonprofit organizations or entities that are not FIs. These types of entities are sufficiently described in Annex I.


The new model Annex II states that extensive consultation with FIs and governments took place to arrive at the new standards, and it cannot be further modified solely to ease or eliminate a specific element of a description. However, the U.S. Treasury is willing to discuss the application of the model to entities or accounts that do not satisfy all the requirements of a particular description listed, provided the FATCA partner can demonstrate the existence of a substitute requirement that provides equal assurance that such entity or account presents a low-risk of tax evasion.


For your reference


Read the updated Annex II to Model 1 IGA (PDF, 88 KB)
Read the updated Annex II to Model 2 IGA (PDF, 92 KB)



IRS Releases Revised Draft Form W-8EXP


The IRS has posted revised draft Form W-8EXP, Certificate of Foreign Government or other Foreign Organization for United States Tax Withholding and Reporting, with a revision date of July 2013. The IRS seeks comments via e-mail at or via submission to its page, titled, Comment on Forms and Publications. Highlights:


  • The form has been revised from the draft released one year ago and continues to be without instructions.
  • Chapter 4 status added as Box 4, which does not mirror the Chapter 3 statuses
  • Permanent address: instruction added to not provide an in care of address
  • GIIN check box added to Foreign TIN check box in Box 8
  • Qualification Statement: For Chapter 3, the statement is unchanged, although all entities must complete it. For Chapter 4, a separate statement has been added, which only needs to be completed as required.
  • Certification to Provide Future Changes: At the bottom of the revised Certification section (Part XXVI), a new certification has been added, requiring the person completing the form to agree to update the form within 30 days of a change that would make any certification on the form incorrect.
  • Capacity: The signer of the form would no longer be required to state its “capacity” or title on the form, but would be required to check a box certifying that he or she does have the capacity to sign the form.




The revised draft Form W-8EXP reflects the final FATCA regulations and IGAs, and is intended to be completed by exempt payees. It is interesting to see FFI statuses in Box 4, which appears to have been added due to the different definitions and qualifications of exempt entities under Chapters 3 and 4, notably central banks. It appears that the drafters presume that no central bank that carries out commercial activities will choose to be a nonparticipating FFI as there is no box for that status. In addition, for those exempt organizations that do obtain FFI or registered deemed-compliant FFI status, or are an IGA FI, a GIIN would be required.


For your reference


Click here to access the revised draft Form W-8EXP (PDF, 155 KB)



Germany - Text of FATCA intergovernmental agreement


The German Cabinet (Bundeskabinett) last week approved a resolution on the signing of an intergovernmental agreement (IGA) between Germany and the United States, for enhance tax compliance with respect to the exchange of tax information under FATCA (i.e., as the U.S. legislation, Foreign Account Tax Compliance Act, is known).


You can access the text of the IGA here - IGA in English (PDF 194 KB) and IGA in German (PDF 225 KB).


Text of a “declaration of understanding” relating to the IGA was also released - declaration in English (PDF 34 KB) and declaration in German (PDF, 18 KB).



United Kingdom - Guidance, draft regulations under U.S. FATCA agreement


On 31 May 2013, HM Revenue and Customs (HMRC) released the current version of the UK guidance and draft regulations on implementing the FATCA agreement with the United States.


The guidance (PDF, 470 KB) and the draft regulations (PDF, 2.23 MB) were posted on 31 May 2013, on the HMRC dedicated FATCA website.


According to an informal communication, HMRC will continue to accept comments concerning the draft regulations “for the next few weeks” and an expectation that the regulations will be final following Royal Assent of Finance Bill 2013.


HMRC also expects to publish a revised Annex II in the near future.


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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