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  • Service: Tax, Financial Services
  • Industry: Financial Services
  • Type: Newsletters
  • Date: 5/7/2014

Contact

Gérard Laures
Partner, Tax
Tel. +352 22 51 51 5549

gerard.laures@kpmg.lu

 

Frank Stoltz
Partner, Tax
Tel. +352 22 51 51 5520
frank.stoltz@kpmg.lu

FATCA e-alert Issue 2014-14 

May 2014

FATCA - Final version of Form W-8IMY

 

The IRS has posted the final version of Form W-8IMY, Certificate of Foreign Intermediary, Foreign Flow-Through Entity, or Certain U.S. Branches for United States Tax Withholding and Reporting (Rev. April 2014) for 2014.

 

Form W-8IMY (PDF 257 KB) is eight pages, and includes sections for entities to complete - including a section for branches of foreign financial institutions (FFIs) and disregarded entities - and reflects changes under Chapter 4, also referred to as FATCA (Foreign Account Tax Compliance Act).

 

The final version of instructions for Form W-8IMY (2014) is not yet available from the IRS.

 


 

Final version of instructions for Form 1042

 

On 5 May, the IRS has released the final version of the instructions for Form 1042, Annual Withholding Tax Return for U.S. Source Income of Foreign Persons, for use for the tax year 2014.

 

The Form 1042 instructions (PDF, 205KB) explain that Form 1042 for 2014 has been modified primarily for withholding agents to report payments and amounts under chapters 3 and 4 of the Code (i.e., FATCA requirements).

 

The final version of Form 1042 (PDF, 172 KB) was released in early March 2014.

 


 

Intergovernmental Agreements

 

Jamaica - Text of Model 1 IGA signed

 

On 6 May, the U.S. Treasury Department updated its FATCA webpage to include text of a recently signed intergovernmental agreement (IGA) between the United States and Jamaica. Treasury reports that the IGA with Jamaica follows the Model 1 IGA. Read the IGA (PDF, 400KB) - 2 May 2014 - as signed between Jamaica and the United States.

 

Mexico - Revised FATCA intergovernmental agreement

 

The U.S. Treasury Department on 25 April 2014 posted text of a revised intergovernmental agreement (IGA) between Mexico and the United States to implement U.S. legislation known as FATCA. 

 

The revised IGA ([PDF, 210 KB) - Mexico - follows the Model 1 IGA.

 

An initial IGA between Mexico and the United States was signed in November 2012. The newly posted IGA replaces that 2012 version.

 

Sweden - Intergovernmental agreement under FATCA

 

The U.S. Treasury Department has indicated that Sweden has agreed in substance to an intergovernmental agreement (IGA) with the United States under the FATCA legislation.

 

According to a Treasury webpage, the IGA between Sweden and the United States will follow the Model 1 IGA. There is no information as to when the IGA will be officially signed.

 

Vietnam - Guidance on complying with FATCA rules

 

A division of the State Bank of Vietnam issued guidance (an “official letter”) recommending that all credit institutions and branches of foreign banks in Vietnam undertake necessary actions to comply with the FATCA rules under U.S. law.

 

The official letter directs financial institutions to register for a Global Intermediary Identification Number (GIIN); notify the State Bank of Vietnam of this number; and obtain approval from the State Bank of Vietnam prior to transmitting information to the IRS as required under FATCA if the government of Vietnam has not yet signed an intergovernmental agreement with the United States.

 

Read an April 2014 report (PDF, 550 KB) prepared by the KPMG member firm in Vietnam: State Bank of Vietnam Recommendation to Local Credit Institutions on U.S. FATCA Compliance

 

Text of IGAs signed with Australia, Austria; agreement reached with Israel, Indonesia, Singapore, Kuwait, Panama and Peru

 

The U.S. Treasury Department updated its FATCA webpage to include text of recently signed intergovernmental agreements (IGA) between the United States and the following countries:

 

  • Model 1 IGA - Australia (signed 28 April 2014)
  • Model 2 IGA – Austria (signed 29 April 2014)

 

Treasury also noted that:

 

  • Israel reached an agreement “in substance” for Model 1 IGA with the United States (as of 28 April 2014)
  • Indonesia reached an agreement “in substance” for a Model 1 IGA with the United States (as of 4 May 2014).
  • Singapore reached an agreement “in substance” for a Model 1 IGA (as of 5 May 2014).
  • Kuwait reached an agreement “in substance” for a Model 1 IGA with the United States (as of 1 May 2014).
  • Panama reached an agreement “in substance” for a Model 1 IGA with the United States (as of 1 May 2014).
  • Peru reached an agreement “in substance” for a Model 1 IGA with the United States (as of 1 May 2014).

 

There is no information as to when the IGA with Israel, Indonesia, Singapore, Kuwait, Panama or Peru would be signed.

 

Read more on Treasury’s FATCA webpage.

 


 

IRS publication on FFI list search and download tool

 

On 5 May, the IRS has released a final version of a publication that provides guidance concerning the foreign financial institution (FFI) list search and download tool.

 

Pub. 5147 - FATCA Foreign Financial Institution (FFI) List / Search and Download Tool - explains the system requirements and instructions on how to launch, download, and search the FFI list and how to download FFI list search results.

 

The FATCA FFI list search and download tool has three main functions:

 

  • Download the entire FFI list
  • Search the FFI list
  • Download a partial FFI list (the search results)

 

Pub 5147 explains that the search tool may be used when there is a need to narrow down results by Global Intermediary Identification Number (GIIN), financial institution name, and/or by country of an FFI or its branch.

 


 

FAQs updated

 

On 1 May, the IRS announced that the list of “frequently asked questions” (FAQs) concerning FATCA has been updated with the addition of four new FAQs.

 

The list of FAQs on FATCA was last updated one week ago on Thursday, April 24, and then before that, on Thursday, April 17 and then previously on Friday, April 4.

 

Last weeks' release does not specify which four FAQs have been added. Rather, an IRS transmittal message simply (and broadly) states that these FAQ updates concern topics such as responsible officers, branches / disregarded entities, and a registration update.

 

Read the IRS updated list of FAQs concerning FATCA.

 

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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