FATCA - Countries with IGAs listed; more time provided for foreign financial institutions to register 

April 2:  The Treasury Department and IRS today announced that jurisdictions that have reached “agreements in substance” with the United States on the terms of intergovernmental agreements (IGAs) under the Foreign Account Tax Compliance Act (FATCA) can be treated as having agreements in effect until the end of 2014.

According to Treasury’s release, this treatment will be available to jurisdictions:

  • That reach “agreements in substance” prior to July 1, 2014, and
  • That consent to having the status of their agreements disclosed

Read Announcement 2014-17 [PDF 34 KB] released today by the IRS.

Implications for FFIs include more time to register

Because an increasing number of jurisdictions have reached agreements in substance, today’s announcement provides foreign financial institutions (FFIs) located in these jurisdictions with needed guidance before the upcoming registration deadlines.

Also, because of IRS experience with processing the registrations that have been submitted to date, today’s announcement also provides FFIs with 10 more days to register in order to be included on the first IRS FFI list.

Prior to today’s notice, FFIs were required to register by April 25, 2014, to be certain that they would be included on the first IRS FFI list—i.e., the only list that will be published before withholding begins.

Today’s announcement provides that FFIs will be included on this list if they submit a complete registration form by May 5, 2014—instead of April 25 as originally announced.

26 IGAs signed, 45 IGAs in effect

Treasury reports that as of today:

  • The United States has signed 26 IGAs with countries and jurisdictions—read the list.
  • There are 19 additional countries and jurisdictions that will be treated as having IGAs in effect, bringing the total number of jurisdictions that are treated as having IGAs in effect to 45—read the list.
  • This list is expected to continue to grow in the coming weeks, as additional countries provide consent to having the status of their IGAs disclosed and additional agreements in substance are reached.

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