FATCA & CRS

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FATCA & CRS News

Foreign Account Tax Compliance Act & Common Reporting Standard

CRS August Newsletter

Between January 1, 2016 and January 1, 2017 the Common Reporting Standard (“CRS”) regime has come into effect in most participating jurisdictions. CRS will come into effect in a number of additional “late adopter” jurisdictions (e.g. Canada) on July 1, 2017. Similar to FATCA, the CRS regime differs among the implementing jurisdictions, and changes with constant developments. As part of Deloitte’s efforts to provide transparency with regards to this evolving landscape, a summary of key jurisdictional updates on CRS signatories, regulations, guidance, and other related news is distributed via our monthly CRS Newsletter. Read more...

32/2017

Notice 2017-42: Extended effective date for Section 871(m) withholding on dividends

On August 4, 2017, Treasury and the IRS issued Notice 2017-42, “Extension of the Phase-in Period for the Enforcement and Administration of Section 871(m)” (the “Notice”). The Notice essentially extends certain aspects of the final and temporary regulations under Internal Revenue Code section 871(m) published on September 15, 2015 in the Federal Register as TD 9734, 80 FR 56866 (the “Final Regulations”). Notice 2016-76, 2016-51 I.R.B. 834, published on December 19, 2016, provided phased-in application of certain parts of the Final Regulations to provide taxpayers additional time for administration of section 871(m) treatment of non-delta one equity derivative contracts and to coordinate such treatment with the requirements of the new Qualified Intermediary (QI) agreement. Read more...

 

31/2017

New revision of Form W-8BEN-E and instructions released by IRS

On July 19, 2017, the IRS released a revised version of Form W-8BEN-E, “Certificate of Status of Beneficial Owner for United States Tax Withholding and Reporting (Entities)” and its corresponding Instructions. This revision updates the prior version (released on April 16, 2016) to incorporate changes from the final and temporary regulations released by the IRS and Treasury on December 31, 2016. Read more...

30/2017

The Cayman Islands DITC announces final extension of 2017 reporting deadline for US FATCA and CRS

On July 19, 2017, the Cayman Islands DITC released a statement on the AEOI News & Updates webpage announcing a final extension of the 2017 reporting deadline for submission of FATCA and CRS reports. The new deadline is 4:00 pm (Cayman Islands local time) on August 31, 2017. Prior to this deadline, all Cayman Islands Reporting Financial Institutions (RFI) must submit reports on all FATCA and CRS reportable account holders as well as CRS filing declarations. The filing declaration certifies that all relevant CRS reportable accounts have been identified in XML or manual reports and is required regardless of whether a RFI has any reportable account holders. Read more...

29/2017

CRS June Newsletter

Between January 1, 2016 and January 1, 2017 the Common Reporting Standard (“CRS”) regime has come into effect in most participating jurisdictions. CRS will come into effect in a number of additional “late adopter” jurisdictions (e.g. Canada) on July 1, 2017. Similar to FATCA, the CRS regime differs among the implementing jurisdictions, and changes with constant developments. As part of Deloitte’s efforts to provide transparency with regards to this evolving landscape, a summary of key jurisdictional updates on CRS signatories, regulations, guidance, and other related news is distributed via our monthly CRS Newsletter. Read more...

28/2017

IRS releases corrections to final and temporary regulations TD 9808 and TD 9809

On June 30, 2017, the IRS published corrections to final and temporary regulations TD 9808 (“82 FR 2046”) and TD 9809 (“82 FR 2124”). The corrections to TD 9809 are more substantive and we begin with a discussion of the same. Read more...

27/2017

IRS issues new FAQs addressing FFI Agreement Renewal

On July 3, 2017, the Internal Revenue Service issued new FAQs regarding FFI Agreement Renewal under the Registration Update section of its FATCA – FAQs General page.

The newly added Questions 8, 9, 10, and 11 clarify that an entity that is not required to renew (i.e., a Financial Institution located in a Model 1 jurisdiction) does not have to take any action with respect to its registration. Specifically, to maintain its FFI status, such an entity is not required to answer “No” in the “Renew FFI Agreement” section that asks whether the entity or its branches are required to renew the agreement. Read more...

26/2017

IRS released new version of Form W-8IMY and revised instructions

The IRS recently released revised versions of Form W-8IMY, “Certificate of Foreign Intermediary, Foreign Flow-Through Entity, or Certain U.S. Branches for United States Tax Withholding and Reporting" and its associated instructions. This new version of Form W-8IMY updates the prior version (released on July 6, 2016) to reflect final and temporary IRS regulations published in January 2017 as well as the Qualified Intermediary Agreement published in Rev. Proc. 2017-15. Read more...

25/2017

CRS May Newsletter

Between January 1, 2016 and January 1, 2017 the Common Reporting Standard (“CRS”) regime has come into effect in most participating jurisdictions. CRS will come into effect in a number of additional “late adopter” jurisdictions (e.g. Canada) on July 1, 2017. Similar to FATCA, the CRS regime differs among the implementing jurisdictions, and changes with constant developments. As part of Deloitte’s efforts to provide transparency with regards to this evolving landscape, a summary of key jurisdictional updates on CRS signatories, regulations, guidance, and other related news is distributed via our monthly CRS Newsletter. Read more...

24/2017

IRS updates FATCA FFI Registration System for FFIs to renew their agreements with the IRS

On June 6, 2017, the IRS announced that the FATCA FFI Registration System has been updated to allow Foreign Financial Institutions (“FFIs”) to renew their FFI agreements. This renewal is required for FFIs in Model 2 Intergovernmental Agreement (“IGA”) and non-IGA jurisdictions as well as FFIs in Model 1 IGA jurisdictions that are operating branches outside of Model 1 jurisdictions. These requirements are outlined on a table of guidelines within the “Renew FFI Agreement” portion of the registration. The renewal must occur by July 31, 2017, and those who are required to renew but do not by the deadline “will be treated as having terminated their FFI agreement as of January 1, 2017, and may be removed from the FFI List.” Read more...

23/2017

CRS April Newsletter

Between January 1, 2016 and January 1, 2017 the Common Reporting Standard (“CRS”) regime has come into effect in most participating jurisdictions. CRS will come into effect in a number of additional “late adopter” jurisdictions (e.g. Canada) on July 1, 2017. Similar to FATCA, the CRS regime differs among the implementing jurisdictions, and changes with constant developments. As part of Deloitte’s efforts to provide transparency with regards to this evolving landscape, a summary of key jurisdictional updates on CRS signatories, regulations, guidance, and other related news is distributed via our monthly CRS Newsletter. Read more...

22/2017

IRS updates FAQs addressing TIN reporting, FATCA Registration System, FFI List, and report notifications

The IRS made numerous updates to the FATCA FAQs webpages, providing guidance on registration, reporting, and notifications. On April 11, the IRS added a new FAQ to the IDES Technical FAQs webpage stating that, as of January 2018, all Foreign Financial Institutions (“FFIs”) will be expected to include US TINs for all FATCA-reportable account holders. Read more...

21/2017

OECD releases second edition of the AEOI Standard and a new version of CRS FAQs

On April 6, 2017 the OECD published a new version of their CRS-related Frequently Asked Questions and the second edition of the Standard for Automatic Exchange of Financial Account Information in Tax Matters (“AEOI Standard”).

The AEOI Standard expands on the CRS XML Shema User Guide and includes additional guidance on handling corrections and cancellations within the CRS XML Schema. Read more...

20/2017 

IRS updates FATCA General FAQs with QI/WP/WT agreement and withholding certificate guidance

On March 31, 2017, the IRS added two new frequently asked questions (“FAQs”) to the FATCA General FAQs webpage addressing the Qualified Intermediary (“QI”), Withholding Foreign Partnership (“WP”), and Withholding Foreign Trust (“WT”) agreement renewal process.

On April 6, 2017, the IRS added three additional new FAQs addressing foreign Tax Identification Number (“TIN”) collection on withholding certificates. Read more...

19/2017

CRS March Newsletter

Between January 1, 2016 and January 1, 2017 the Common Reporting Standard (“CRS”) regime has come into effect in most participating jurisdictions. Similar to FATCA, the CRS regime differs among the implementing jurisdictions, and changes with constant developments. As part of Deloitte’s efforts to provide transparency with regards to this evolving landscape, a summary of key jurisdictional updates on CRS signatories, regulations, guidance, and other related news is distributed via our monthly CRS Newsletter. Read more...

18/2017

IRS extends QI/WP/WT agreement renewal deadline

On March 31, the IRS announced that it is extending the deadline for submitting qualified intermediary (“QI”), withholding foreign partnership (“WP”), and withholding foreign trust (“WT”) agreement renewals to May 31, 2017. The original deadline for agreement renewal was March 31, 2017, for the IRS to grant an effective date of January 1, 2017. The extension also applies to renewals containing a request for qualified derivatives dealer (“QDD”) status and to new QI applications that contain a request for QDD status. For any other new applicants, the original March 31 deadline is still in effect.

17/2017

IRS updates FATCA General and International Compliance Management Model FAQs

On March 17, 2017, the IRS posted seven new FAQs on the FATCA General FAQs webpage. These new FAQs relate to the Qualified Intermediary (“QI”), Withholding Foreign Partnership (“WP”), and Withholding Foreign Trust (“WT”) agreements. The first three of these new FAQs provide details on specific sections of the agreements to applicants—how to populate the types of transactions, approximate value of transactions by account holder type, and eligible entity description—assisting with proper completion of the agreements. The other four questions address the QI agreement for Qualified Derivatives Dealers (“QDDs”), providing guidance on completing the QDD-specific questions of the agreement for applicants and further defining the entities that qualify as “eligible entities.” Read more...

16/2017

CRS February Newsletter

Between January 1, 2016 and January 1, 2017 the Common Reporting Standard (“CRS”) regime has come into effect in most participating jurisdictions. Similar to FATCA, the CRS regime differs among the implementing jurisdictions, and changes with constant developments. As part of Deloitte’s efforts to provide transparency with regards to this evolving landscape, a summary of key jurisdictional updates on CRS signatories, regulations, guidance, and other related news is distributed via our monthly CRS Newsletter. Read more...

15/2017

IRS clarifies requirements for updated Form 1042-S

On February 23, the Internal Revenue Service made additional changes to Form 1042-S and the Instructions for Form 1042-S. To assist withholding agents in the accurate reporting of information with respect to payments to nonresident alien recipients, the IRS has clarified the changes contained in the 2017 Form 1042-S and provided additional guidance surrounding recipient information, joint owners, extensions, amended forms, and substitute Forms 1042-S.
We will provide a detailed analysis of these clarifications and Form 1042-S requirements upon formal publication by the IRS.

14/2017

IRS adds new QI/WP/WT FAQs to the FATCA General FAQs webpage

On February 15, 2017, the IRS added four new FAQs to the FATCA General FAQs webpage. These FAQs address topics relevant to Qualified Intermediaries (“QIs”), Withholding Foreign Partnerships (“WPs”), and Withholding Foreign Trusts (“WTs”). Read more...

13/2017

January Newsletter

Between January 1, 2016 and January 1, 2017 the Common Reporting Standard (“CRS”) regime has come into effect in most participating jurisdictions. Similar to FATCA, the CRS regime differs among the implementing jurisdictions, and changes with constant developments. As part of Deloitte’s efforts to provide transparency with regards to this evolving landscape, a summary of key jurisdictional updates on CRS signatories, regulations, guidance, and other related news is distributed via our monthly CRS Newsletter. Read more...

12/2017

Proposed Chapter 4 regulations describe verification and certification requirements

On December 30, 2016, the US Treasury Department and Internal Revenue Service issued proposed regulations (REG-103477-14) describing: (1) verification requirements and events of default for Sponsoring Entities of Sponsored Investment Entities, Sponsored Controlled Foreign Corporations (“CFCs”), and Sponsored, Closely Held Investment Vehicles (“SCHIVs”); (2) verification requirements and events of default for Sponsoring Entities of Sponsored Direct Reporting Nonfinancial Foreign Entities (“NFFEs”); (3) certification requirements and IRS review procedures of trustees of Trustee-Documented Trusts; (4) IRS review procedures of Registered Deemed-Compliant FFIs; (5) future modification of Participating FFIs’ certification requirements; and (6) certification requirements for consolidated compliance groups (“Proposed Regulations”). The Proposed Regulations became effective on January 6 when they were published in the Federal Register. Read more...
 

11/2017

Treasury publishes new final and temporary chapter 4 regulations

On January 6, 2016, the Department of the Treasury and the IRS published in the Federal Register new final and temporary regulations under chapter 4 of the Internal Revenue Code (“IRC “) (also known as the Foreign Account Tax Compliance Act (“FATCA”) regulations). These regulations, effective on the date of publication, contain a substantial number of changes, some of which were described in previously-published Notices 2014-33, 2015-66, and 2016-08. These changes are described in detail in the preamble, with the final regulation changes addressed in Part I of the summary and the temporary regulation changes addressed in Part II. The attached publication notes the most impactful changes, but a more careful reading of the full text of the preamble and regulations is advised. Read more...
 

10/2017

IRS issues Final and Temporary FATCA Coordination Regulations under Chapters 3 and 61 and Section 3406

On December 30, 2016, the IRS issued final and temporary regulations (“Final Coordination Regulations”) under chapters 3 and 61 and sections 871, 3406, and 6042 of the Internal Revenue Code of 1986 (“Code”) regarding withholding of tax on certain US source income paid to foreign persons, information reporting and backup withholding with respect to payments made to certain US persons, and portfolio interest paid to nonresident alien individuals and foreign corporations. The Final Coordination Regulations finalize certain proposed regulations, withdraw corresponding temporary regulations and contain new temporary regulations which provide additional rules under chapter 3. Read more...

09/2017

IRS launches new online QI, WP, and WT Application and Account Management System
 
On January 17, 2017, the IRS announced its new Qualified Intermediary (“QI”), Withholding Foreign Partnership (“WP”), and Withholding Foreign Trust (“WT”) Application and Account Management System. This web-based system facilitates secure QI, WP, and WT applications, renewal, and account management. It is intended to be a user-friendly portal, and, to the extent needed, there are instructions on the system navigation available in the QI, WP, and WT Application & Account Management User Guide and FAQs. Read more...

08/2017

Updated FFI Agreement set forth in Rev. Proc. 2017-16

On December 30, 2016, the US Treasury Department and Internal Revenue Service issued Revenue Procedure 2017-16, which sets forth an updated FFI Agreement superseding the previous agreement contained in Rev. Proc. 2014-38 that expired on December 31, 2016 (“2014 Agreement”). Accordingly, the new FFI Agreement will apply to all participating and Model 2FFIs with an FFI Agreement effective on or after January 1, 2017. Read more...

07/2017

CRS December Newsletter - The road continues

Between January 1, 2016 and January 1, 2017 the Common Reporting Standard (“CRS”) regime has come into effect in most participating jurisdictions. Similar to FATCA, the CRS regime differs among the implementing jurisdictions, and changes with constant developments. As part of Deloitte’s efforts to provide transparency with regards to this evolving landscape, a summary of key jurisdictional updates on CRS signatories, regulations, guidance, and other related news is distributed via our monthly CRS Newsletter. Read more...

06 / 2017

Cayman Islands approves second tranche of CRS Regulations

On December 22, 2016 the Government of the Cayman Islands announced the approval of The Tax Information Authority (International Tax Compliance) (Common Reporting Standard) (Amendment) Regulations, 2016 (“Second Tranche”). A revised version of the CRS Guidance Notes will be published in the first quarter of 2017. Read more...

5 / 2017

FATCA IGA Global Summary

The development of Intergovernmental Agreements (IGAs) to implement the tax reporting and withholding procedures associated with FATCA continues. The US Treasury has released Model agreements to implement FATCA. These agreements serve as a baseline for negotiations between the US and FATCA partner countries. They continue to be updated as additional IGAs are promulgated. In addition to countries that have signed IGAs, the US Department of the Treasury will treat an IGA as “in effect' with a partner jurisdiction if the United States has reached an agreement in substance.

The “IGA Global Summary” provides a high-level summary of all countries with agreements or agreements in substance which directly line up with the updates published on the US Department of the Treasury FATCA resource center. Read more...

4 / 2017

IRS releases new version of Form W-8BEN

In December 2016, the IRS released a new version of the Form W-8BEN, Certificate of Foreign Status of Beneficial Owner for United States Tax Withholding and Reporting (Individuals). There are minor changes to the new version of the form, noted in the attached, and revised instructions were not released. Read more..

3 / 2017

FATCA and Coordination Regulations, Final QI Agreement, and Updated FFI Agreement

On December 30, 2016, the US Treasury Department and Internal Revenue Service issued two revenue procedures as well as four sets of regulations scheduled to be published in the Federal Register on January 6, 2017. We are currently reviewing these packages and will release a detailed analysis within the next two weeks. In the interim, we have provided the text and a brief summary of these documents. Read more...

2 / 2017

BMF veröffentlicht Richtlinien zum GMSG

Am 12.12.2016 veröffentlichte das Bundesministerium für Finanzen die Richtlinien zum gemeinsamen Meldestandardgesetz (GMSR). Diese stellen gemeinsam mit den Quellen der Organisation für wirtschaftliche Zusammenarbeit und Entwicklung (OECD) zum Common Reporting Standard (CRS), insbesondere dem Kommentar zum gemeinsamen Meldestandard (CRS Kommentar), einen Auslegungsbehelf zum gemeinsamen Meldestandard-Gesetz dar. Die GMSR stützen sich sehr stark auf den OECD CRS-Kommentar und verweisen immer wieder auf diesen. In den GMSR wird weiters auf die OECD CRS FAQs verwiesen. Dabei handelt es sich um eine Zusammentragung von Antworten der OECD auf häufig aufgetretene praktische Fragestellungen in der Umsetzung und Anwendung des CRS. Das BMF erkennt in den GMSR ein Nachschlagewerk für die Verwaltungspraxis und die betriebliche Praxis. Eine über den Gesetzeswortlaut hinausgehende Maßgeblichkeit besitzen die GMSR – wie auch andere Richtlinien der Abgabenverwaltung – nicht. Mehr lesen...

1 / 2017

IRS issues Notice 2016-76 addressing Section 871(m) regulations phase-in

On December 2, 2016, the IRS issued Notice 2016-76 (“Notice”), providing transitional guidance on the current Final and Temporary section 871(m) regulations and the IRS’s plans for administration of those regulations in 2017 and 2018. In addition, the Notice announces technical changes that the IRS has stated it intends to implement when finalizing Treas. Regs. § 1.871-15T(q) concerning the gross basis tax treatment of dividends and dividend equivalent payments made to Qualified Derivatives Dealers (“QDD”). This guidance was necessitated by the IRS and Treasury’s decision to phase-in the Section 871(m) treatment of certain types of transactions. Read more...

41 / 2016

IRS releases Rev. Proc. 2016-56 to identify additional countries requiring reporting of nonresident alien deposit interest

On December 5, 2016, the IRS issued a Guidewire notification announcing the release of Revenue Procedure 2016-56, which will be published in I.R.B. 2016-51 on December 19. Rev. Proc. 2016-56 supplements the listing of countries in Sections 3 and 4 of Rev. Proc. 2014-64 (previously supplemented by Rev. Proc. 2015-50 and Rev. Proc. 2016-18). Read more...

40 / 2016

CRS Update

On January 1, 2016, the Common Reporting Standard (“CRS”) regime came into effect in several jurisdictions. Similar to FATCA, the CRS regime will differ among the implementing jurisdictions, and change with constant developments. In an attempt to provide transparency to this evolving landscape, a summary of updates will be distributed via a monthly CRS newsletter. The monthly newsletter will contain key updates on CRS signatories, regulations, guidance, and other related news. Read more...

39 / 2016

Proposed EU directive will grant tax authorities access to beneficial ownership information

At a meeting of the Economic and Financial Affairs Council on November 8, 2016, the Council of the European Union (EU) agreed on a proposed directive enabling tax authorities to access information held by anti-money laundering authorities. Specifically, beginning on January 1, 2018, the directive will require member states to allow access to information on the beneficial ownership of companies. This proposal follows the April 2016 release of the Panama Papers as well as the October 2016 Secretary-General Report to G20 Finance Ministers, which discussed updates and proposals to improve the implementation of the international standards on tax transparency, focusing on beneficial ownership standards. Read more...

38 / 2016

Austrian Federal Ministry of Finance releases List of Participating Jurisdictions

On 5 December 2016, the Austrian Federal Ministry of Finance released a Regulation with a list of Participating Jurisdictions under the Common Reporting Standard pursuant to § 91 Z 2 GMSG. Read more...

37 / 2016

IRS updates FATCA Notification XML Schema and announces IDES testing dates

On December 1, 2016, the IRS updated the IRS FATCA Notification XML Schema v2.3, which is the schema outlining the data elements and data types for FATCA error notifications. Version 2.3 includes error notification codes at the file and record level for FATCA XML Schema v2.0 and for Nil Reports. As with the FATCA XML Schema v2.0, the notification schema will be used starting January 2017. Read more..

36 / 2016

IRS extends acceptance period for February 2014 version of Form W-8BEN-E

On October 21, 2016, the IRS released an announcement extending the acceptance period for the February 2014 version of Form W-8BEN-E until January 1, 2017. After the issuance of an updated version of a withholding certificate, the general acceptance period for a prior version is six months after the revision month listed on the updated withholding certificate. With the release of the April 2016 version of Form W-8BEN-E, the February 2014 version acceptance period was expected to extend through the end of October 2016. The February 2014 version may now be accepted through the end of the year, and withholding agents may rely on such a form until the validity period expires or there is a change in circumstances

35 / 2016

IRS releases new version of Form W-8EXP

In September 2016, the IRS released a new version of Form W-8EXP, “Certificate of Foreign Government or Other Foreign Organization for United States Tax Withholding and Reporting.” This version does not contain any substantive updates, only formatting adjustments. However, the new form will still be mandatory for industry use as of April 1, 2017.

34 / 2016

October Newsletter

On January 1, 2016, the Common Reporting Standard (“CRS”) regime came into effect in several jurisdictions. Similar to FATCA, the CRS regime will differ among the implementing jurisdictions, and change with constant developments. In an attempt to provide transparency to this evolving landscape, a summary of updates will be distributed via a monthly CRS newsletter. The monthly newsletter will contain key updates on CRS signatories, regulations, guidance, and other related news. Read more...

33 / 2016

The IRS releases specifications for electronic filing Form 1042-S for Tax Year 2016

In October 2016, the IRS released Publication 1187, “Specifications for Electronic Filing of Form 1042-S, Foreign Person’s U.S. Source Income Subject to Withholding,” for Tax Year 2016. This publication includes guidance on filing requirements, extensions, amendments, penalties, format and specifications, and instructions for using the Filing Information Returns Electronically (“FIRE”) System. Read more...

32 / 2016

IRS reminds taxpayers with expiring and unused ITINs to begin renewal process

On October 6, the IRS issued an update (IR-2016-129) with respect to the Individual Taxpayer Identification Number (ITIN) program, reminding impacted taxpayers that they can now submit their ITIN renewal applications. We previously discussed Notice 2016-48, including changes to the ITIN program and the renewal process, here. Read more...

31 / 2016

CRS September Newsletter

On January 1, 2016, the Common Reporting Standard (“CRS”) regime came into effect in several jurisdictions. Similar to FATCA, the CRS regime will differ among the implementing jurisdictions, and change with constant developments. In an attempt to provide transparency to this evolving landscape, a summary of updates will be distributed via a monthly CRS newsletter. The monthly newsletter will contain key updates on CRS signatories, regulations, guidance, and other related news. Read more...

30 / 2016

CRS August Newsletter

On January 1, 2016, the Common Reporting Standard (“CRS”) regime came into effect in several jurisdictions. Similar to FATCA, the CRS regime will differ among the implementing jurisdictions, and change with constant developments. In an attempt to provide transparency to this evolving landscape, a summary of updates will be distributed via a monthly CRS newsletter. The monthly newsletter will contain key updates on CRS signatories, regulations, guidance, and other related news. Read more...

29 / 2016

IRS releases Notice 2016-48 to address recent changes to the ITIN program

On August 4, the IRS released Notice 2016-48, which contains changes to the Individual Taxpayer Identification Number (ITIN) program as required by the Protecting Americans from Tax Hikes (PATH) Act enacted by Congress in December 2015. Under the PATH Act, certain ITINs will not be valid for use on a tax return unless renewed. Read more...

28 / 2016

IRS updates FATCA IDES technical FAQs

On August 10, 2016, the IRS updated the FATCA IDES Technical FAQs webpage, adding four new FAQs and updating four others. Several of these FAQs address the updated FATCA XML Schema v2.0, a draft of which was released in June. Read more...

27 / 2016

OECD issues report discussing recent tax transparency developments

Following the G20 Tax Policy Symposium in Chengdu on July 23 and 24, the Organisation for Economic Co-operation and Development (OECD) released its Secretary-General Report to G20 Finance Ministers, discussing the below developments. Read more...

26 / 2016

IRS publishes Announcement 2016-27: update on jurisdictions treated as if they have an IGA in effect

The IRS published Announcement 2016-27 informing financial institutions that on January 1, 2017 Treasury will update the Intergovernmental Agreement (“IGA”) List to remove certain jurisdictions that have failed to bring an IGA into force. The Announcement states that these jurisdictions will no longer be treated as having an IGA in effect but clarifies that a jurisdiction will not cease to be treated as having an IGA in effect until at least 60 days after the jurisdiction’s status on the IGA List is updated. Read more...

25 / 2016

CRS July Newsletter

On January 1, 2016, the Common Reporting Standard (“CRS”) regime came into effect in several jurisdictions. Similar to FATCA, the CRS regime will differ among the implementing jurisdictions, and change with constant developments. In an attempt to provide transparency to this evolving landscape, a summary of updates will be distributed via a monthly CRS newsletter. The monthly newsletter will contain key updates on CRS signatories, regulations, guidance, and other related news. Read more...

24 / 2016

Panama announces signing of the Multilateral Convention on Mutual Administrative Assistance in Tax Matters 

On July 15, 2016 the Government of Panama announced (in Spanish) its commitment to sign the Multilateral Convention on Mutual Administrative Assistance in Tax Matters, a comprehensive multilateral instrument for all forms of tax co-operation to tackle tax evasion and avoidance developed jointly by the OECD and the European Council.
Read more...

23 / 2016

Luxembourg modifies list of Participating Jurisdictions for CRS purposes

On July 6, 2016 the Government of Luxembourg published a press release (in French) announcing the adoption of a draft regulation amending the Grand-Ducal Regulation of March 15, 2016 which implements article 2, paragraph 4 of the Law of December 18, 2015 regulating the Common Reporting Standard (CRS) in Luxembourg.
Read more...

22 / 2016

IRS releases draft Form W-8IMY

On July 6, 2016, the IRS issued an early release draft of Form W-8IMY, “Certificate of Foreign Intermediary, Foreign Flow-Through Entity, or Certain U.S. Branches for United States Tax Withholding and Reporting." As a draft version, this form should not be used or relied upon, as the form may undergo additional changes prior to its official release. The draft form updates the current version of the form (released on April 30, 2014) based on recent changes to Form W-8BEN-E as well as the release of the Proposed QI Agreement in Notice 2016-42 (previously discussed here).
Read more...

21 / 2016

The European Commission sets out next steps to increase tax transparency and tackle tax abuse

On July 5, 2016 the European Commission (EC) released a communication setting out next steps in its campaign to boost tax transparency in order to fight tax evasion and avoidance in the European Union (EU).

Read more...

20 / 2016

IRS adds new FAQ on requests for additional 90-day extensions to file Form 8966

On July 1, 2016, the IRS added a new FAQ to the FATCA General FAQs webpage addressing the question of what to do if the IRS has not responded to a FATCA filer’s request for an additional 90-day extension to file Form 8966. This extension, requested by filing Form 8809-I, is not automatic, with extensions “granted only where it is shown that extenuating circumstances prevented filing by the date granted by the first request” according to the Instructions for Form 8809-I. The deadline for this additional extension request is the extended filing due date (June 29, 2016 for 2015 filings). As such, filers may be delaying reporting beyond the initial extended deadline without confirmation of the extension from the IRS, an extension request that may be denied. As such, filers are anxious to confirm that the additional extension has been granted. This FAQ instructs such filers that they should wait 45 days from the date that the extension request was mailed to contact the IRS. Filers can contact the IRS with inquiries after the 45-day period using the phone number provided on the webpage.

19 / 2016

IRS Issues Notice 2016-42: Proposed Qualified Intermediary Agreement

On July 1, 2016, the IRS released Notice 2016-42 (“Notice”), providing the Proposed Qualified Intermediary (“QI”) Agreement that certain foreign persons may enter into with the IRS to simplify their withholding agent and payor obligations under chapters 3, 4, 61, and section 3406. The Notice and Proposed QI Agreement also provide substantive guidance and operational procedures for implementing the new Qualified Derivative Dealer (“QDD”) regime applicable to dividend equivalent payments under section 871(m) as announced in Temporary Regulations §1.871-15T(q) and §1.1441-1T(e)(6) on September 17, 2015.

Read more...

18 / 2016

CRS June Newsletter

The OECD released this month an updated version of their CRS-related FAQs. Several of these FAQs require reference to the Commentaries on CRS.
The following new topics are addressed:

  • Requirement to collect a Taxpayer Identification Number (“TIN”)
  • General reporting requirements for trusts
  • Investment entities
  • Reportable accounts

Read more...

17 / 2016

OECD releases new CRS FAQs

The OECD released this month an updated version of their CRS-related FAQs. Several of these FAQs require reference to the Commentaries on CRS.
The following new topics are addressed:

  • Requirement to collect a Taxpayer Identification Number (“TIN”)
  • General reporting requirements for trusts
  • Investment entities
  • Reportable accounts

Read more... 

16 / 2016

CRS May Newsletter

On January 1, 2016, the Common Reporting Standard (“CRS”) regime came into effect in several jurisdictions. Similar to FATCA, the CRS regime will differ among the implementing jurisdictions, and change with constant developments. In an attempt to provide transparency to this evolving landscape, a summary of updates will be distributed via a monthly CRS newsletter. The monthly newsletter will contain key updates on CRS signatories, regulations, guidance, and other related news. Read more...

15 / 2016

UK HMRC Issued Finalized International Exchange of Information Guidance

On April 25, 2016, the UK HMRC issued a finalized International Exchange of Information Manual, including several updates and additions since the draft guidance released on September 14, 2015. The manual includes guidance for UK Financial Institutions with regard to FATCA, the Crown Dependencies and Overseas Territories (CDOT), the OECD Common Reporting Standard (CRS), and the EU Directive on Administration Cooperation (DAC). Read more...

14 / 2016

Five additional jurisdictions commit to the implementation of CRS

On May 11, 2016, the OECD and the Global Forum on Transparency and Exchange of Information for Tax Purposes announced that Bahrain, Lebanon, Nauru, Panama, and Vanuatu have committed to implement the Common Reporting Standard (CRS), with first exchanges to occur in September 2018. The OECD had previously recognized Bahrain, Nauru, Panama, and Vanuatu as jurisdictions that were asked to commit to a timetable but had not yet done so.

With the addition of these commitments, there are currently 101 jurisdictions committed to the automatic exchange of financial account information pursuant to the Common Reporting Standard. 

13 / 2016

Panama signs Model 1 IGA with the United States

On April 27, 2016, Panama and the United States signed a Model 1 Intergovernmental Agreement (IGA) for the implementation of FATCA. With the signature of this agreement the tax authorities of both countries will exchange the information covered by FATCA on a reciprocal basis.

Panama´s Ministry of Finance highlighted during the signing act that "Panama continues to make progress in the field of financial and fiscal transparency, promoting global cooperation in the field of the fight against tax evasion, money-laundering and the financing of terrorism".

Early April, the Government of the Republic of Panama released a statement on Panama’s commitment to tax transparency and its intention to take steps towards the implementation of the Common Reporting Standard (CRS). Read more...

12 / 2016

IRS adds new FATCA FAQ on bulk acquisition and merger events

On May 3, 2016, the IRS added a new FAQ to the FATCA General FAQs webpage addressing the registration and GIIN requirements for bulk acquisition and merger events. In addition to pointing to the general guidance provided in the Registration User Guide, the FAQ provides specific guidance in several scenarios, which represent common bulk acquisition and merger events. Read more...

11 / 2016

CRS April Newsletter

On January 1, 2016, the Common Reporting Standard (“CRS”) regime came into effect in several jurisdictions. Similar to FATCA, the CRS regime will differ among the implementing jurisdictions, and change with constant developments. In an attempt to provide transparency to this evolving
landscape, a summary of updates will be distributed via a monthly CRS newsletter. The monthly newsletter will contain key updates on CRS signatories, regulations, guidance, and other related news. Read more... 

10 / 2016

IRS releases new Form W-8BEN-E and associated Instructions

Three months after releasing the draft version, the IRS released a new Form W-8BEN-E, “Certificate of Status of Beneficial Owner for United States Tax Withholding and Reporting (Entities)” and new Instructions for Form W-8BEN-E. As provided in the Treasury Regulations, a withholding agent may continue to accept the prior version of the Form W-8BEN-E for six months after the revision date shown on the form and may rely on it until the period of validity expires. For a Form W-8BEN-E, that validity period generally is the period starting on the date the form is signed and ending on the last day of the third succeeding calendar year absent a change in circumstances. Read more...

09 / 2016

CRS Update March 2016 

On January 1, 2016, the Common Reporting Standard (“CRS”) regime came into effect in several jurisdictions. Similar to FATCA, the CRS regime will differ among the implementing jurisdictions, and change with constant developments. In an attempt to provide transparency to this evolving landscape, a summary of updates is distributed via a monthly CRS newsletter. The monthly newsletter contains key updates on CRS signatories, regulations, guidance, and other related news. Read more...

08 / 2016

Form 8966 deadline for FFIs in Model 2 and non-IGA jurisdictions and Form 8966 filing extension deadline

In accordance with Treas. Reg. 1.1471-4T(a)(3) and the 2015 Instructions for Form 8966, all FFIs that are Participating FFIs must, among other things, report annually using Form 8966. This reporting obligation is imposed on all Participating FFIs within both Model 2 Intergovernmental Agreement (“IGA”) jurisdictions and jurisdictions in which no IGA has been signed (“non-IGA jurisdictions”). The deadline for Form 8966 FATCA reporting is March 31, 2016. If you have any entities within non-IGA jurisdictions, please contact Deloitte’s Global Information Reporting team immediately (contact information below). Note that “nil returns,” or returns containing no reportable accounts, are not required for Participating FFIs. Learn more...

07 / 2016

Switzerland deadline for aggregate reporting on non-consenting US accounts extended

On January 19, 2016, the Swiss State Secretary on International Finances (SFI) released a communication extending the deadline for reporting on non-consenting US accounts in Switzerland for the year 2015.

According to the Switzerland – US IGA agreement, Swiss Reporting Financial Institutions are required to report aggregate information on non-consenting US accounts to the IRS on or before January 31, 2016. Responding to requests by the SFI, the US Department of the Treasury has confirmed in writing that the US will not consider as significant non-compliance reporting these accounts on or before March 31, 2016. Also, no penalties will be imposed by Switzerland in the event that Swiss Reporting Financial Institutions perform the aggregate reporting of nonconsenting US accounts on or before March 31, 2016 so long as the Swiss Reporting Financial Institutions notify the Swiss Federal Tax Administration (FTA) of this fact.

See details in the communication by the Swiss State Secretary on International Finances in German.

06 / 2016

IRS releases draft Form W-8BEN-E and Instructions

On January 15, 2016, the IRS released a draft Form W-8BEN-E, “Certificate of Status of Beneficial Owner for United States Tax Withholding and Reporting (Entities),” and accompanying Instructions. Although the updates are by no means an overhaul, there are several material updates to highlight compared to the June 2014 version of the form. Learn more... 

05 / 2016

IRS Notice 2016-08 provides relief: extensions, consistency, and clarity

The IRS released Notice 2016-08 providing relief with respect to some upcoming deadlines as well as guidance on the ability to accept electronically collected documentation from intermediaries.
Learn more...

04 / 2016

Treasury Department updates online FATCA document library

On January 15, 2016, the Treasury Department updated the online FATCA document library, relocating the Intergovernmental Agreements (“IGAs”) from the Additional FATCA Documents page, referred to as the FATCA Archive, to the main FATCA Resource Center page. The IGAs are now reorganized into an alphabetized table with hyperlinks to the agreements. This table contains additional details on the IGAs, providing not only the date the jurisdiction is treated as having an IGA in effect but also, where applicable, the date that the IGA entered into force. As it did previously, the FATCA Resource Center page also contains the Model Agreements for jurisdictions that reached agreements in substance either on or before June 30, 2014, or on or after July 1, 2014. The FATCA Archive still contains the joint statements on FATCA implementation between and from the US and other jurisdictions, the letters of notification of more favorable terms, and previously published press releases relevant to IGA treatment and implementation.

03 / 2016

IGA Global Summary as of January 5, 2016

The development of Intergovernmental Agreements (“IGAs”) to implement the tax reporting and withholding procedures associated with FATCA continues. In addition to countries that have signed IGAs, the US Department of the Treasury will treat an IGA as 'in effect' with a partner jurisdiction if the United States has reached an agreement in substance.

The “IGA Global Summary” provides a high-level summary of all countries with agreements or agreements in substance which directly line up with the updates published on the US Department of the Treasury FATCA resource center.

Learn more...

02 / 2016

IRS releases 2015 Form 8966 and Instructions

On December 24, 2015, the IRS released 2015 versions of Form 8966 and Instructions for Form 8966. The new version of the form contains several new lines and checkboxes, as highlighted by the 2015 Instructions. A checkbox was added to the top of the form for the filer to check if it has no accounts to report. This box is optional for filers other than Direct Reporting NFFEs and Sponsoring Entities filing on behalf of a Sponsored Direct Reporting NFFE. Learn more...

01 / 2016

OECD responds to EU’s request for CRS XML Schema updates

On December 14, 2015, the OECD released an announcement responding to a request by the EU to include additional fields in the CRS XML Schema. In this announcement, the OECD stated that they agreed to adopt future changes to the CRS XML Schema which aim to address the concerns of all stakeholders involved while seeking to ensure that one single global standard is maintained going forward. The OECD’s Working Party No. 10 (“WP-10”) published a Statement of Outcomes addressing the position paper submitted by the European Commission July and orally presented at the W-10 meeting in October. In this statement, the WP-10 noted the usefulness of the proposed fields and agreed to review the technical changes by the end of 2017 in order to make a recommendation to the Committee on Fiscal Affairs by no later than the beginning of 2018. If accepted, these schema changes would be implemented in time for reporting for the 2019 calendar year.

Key changes proposed in the schema are three fields and one value: account treatment allowing the differentiation between preexisting versus new accounts; indication of whether a self-certification has been obtained; account type (e.g. depository account, custodial account, etc.); and, value “unknown” in the controlling person type.

45 / 2015

IGA Global Summary as of December 2, 2015

The development of Intergovernmental Agreements (“IGAs”) to implement the tax reporting and withholding procedures associated with FATCA continues. In addition to countries that have signed IGAs, the US Department of the Treasury will treat an IGA as 'in effect' with a partner jurisdiction if the United States has reached an agreement in substance.

The “IGA Global Summary” provides a high-level summary of all countries with agreements or agreements in substance which directly line up with the updates published on the US Department of the Treasury FATCA resource center.

Learn more...

44 / 2015

IRS Updates Online Registration System

On November 16, 2015, the IRS made several updates and improvements to the FATCA Online Registration System, the web-based system on which financial institutions and other entities can register for FATCA purposes.

Read more...

43 / 2015

On November 13, 2015, the OECD released an updated version of their CRS-related FAQs which includes a number of new FAQs. Several of these FAQs require reference to the Commentaries on CRSRead more...

42 / 2015

European Commission publishes lists of Excluded Accounts and Non-Reporting Financial Institutions

On October 31, 2015, the European Commission published a resolution which included lists of the Excluded Accounts and Non-Reporting Financial Institutions (“Non-Reporting FIs”) under the Common Reporting Standard (“CRS”). CRS allows for expansion of its definitions of Excluded Accounts and Non-Reporting FIs using domestic law in certain circumstances. Similar to Annex 2 of the Intergovernmental Agreements, the Commission’s lists that incorporate the domestic laws of each EU Member State outline the types of accounts that are not financial accounts and, therefore, not reportable and the types of FIs that are excluded from reporting. These lists were anticipated based on the EU Council Directive 2014/107 (commonly known as “DAC”), published December 9, 2014, requiring Member States to provide the Commission with their list by July 31, 2015, to be compiled, published, and updated as necessary. Both FIs and account holders in Member States should consult this resolution when determining their proper classifications, and any associated obligations, under CRS.

41 / 2015

OECD releases updated list of jurisdictional commitments

On October 30, 2015, the OECD released an updated list of CRS jurisdictional commitments. This list outlines the jurisdictions that have committed to undertaking their first information exchanges by 2017 and 2018 and notes several jurisdictions that have not indicated a timeline or that have not yet committed. Panama and Cook Islands, previously included in the jurisdictions that have not indicated a timeline, have now committed to undertaking their first information exchanges by 2018 according to the updated list. There are no additional changes to the list at this time, but these and other updates relevant to CRS can be monitored through the links and information provided on the OECD Automatic Exchange Portal.

40 / 2015

OECD launches Automatic Exchange of Information Portal

On October 13, 2015, the OECD launched the AEOI Portal, a webpage intended to provide a comprehensive overview of the OECD’s progress in implementing the Common Reporting Standard (“CRS”). The portal content includes a historical timeline and background on information exchange, guidance and materials, details on the international framework for CRS exchange relationships, information on and assistance with implementation, and an explanation on the commitment and monitoring process. The AEOI Portal is expected to be a central repository for CRS-related information and guidance, and, as jurisdictions continue to release guidance, the portal will be a valuable source for current publications and relevant materials that should be consulted on a regular basis.

39 / 2015

IRS releases Draft Form 8809-I and Draft Instructions for Form 8809-I

On September 29, 2015, the IRS released the Draft Form 8809-I and the Draft Instructions for Form 8809-I to facilitate the application for extension of time to file Form 8966 FATCA Report. The purpose of Form 8809-I is to request an initial or additional 90-day extension of time to file Form 8966. The initial extension request is automatically granted, and, for requests beyond the initial extension, a statement of hardship is required demonstrating extenuating circumstances that prevented filing. A request for an extension of time to file will not be granted to Model 2 Foreign Financial Institutions (“FFIs”) with aggregate reporting on non-consenting US accounts or non-consenting nonparticipating FFIs as well as FFIs in Model 1 jurisdictions, which must report directly to the Model 1 jurisdiction’s tax authority. The Instructions for Form 8809-I provide line-by-line guidance to assist filers to complete Form 8809-I. Form 8809-I should be filed once the filer recognizes that an extension of time is necessary but not before January 1 of the filing year. Late filers of Form 8966 may incur penalties if they have not received an approved extension from the IRS.

38 / 2015

IRS releases Revenue Procedure 2015-50

On September 29, 2015, the IRS issued Rev. Proc. 2015-50, which supplements the list of the countries contained in Rev. Proc. 2014-64, under which the Treasury and IRS have determined that it is appropriate to have an automatic exchange relationship with respect to the information collected under Treas. Reg. §§ 1.6049-4(b)(5) and 1.6049-8 of the Regulations. Those sections require reporting on Forms 1042-S of bank deposit interest paid on or after January 1, 2013 to nonresident alien individuals that are citizens of certain listed countries. Rev. Proc. 2012-24 identified the initial list of countries with which Treasury and the IRS determined that it was appropriate to have an automatic exchange relationship with respect to the bank deposit information collected under those regulations. This list was updated in 2014 with the issuance of Rev. Proc. 2014-64, which added more countries to the list.

Rev. Proc. 2015-50 updates and supersedes the 2014 list by adding the following 16 countries to the list - Brazil, Czech Republic, Estonia, Gibraltar, Hungary, Iceland, India, Latvia, Liechtenstein, Lithuania, Luxembourg, New Zealand, Poland, Slovenia, South Africa, and Sweden. These 16 countries were added to the list because they have recently completed a FATCA-related safeguards assessment.

The list of countries will likely be continuously updated by the IRS as more foreign jurisdictions complete FATCA-related safeguards assessments.

37 / 2015

IRS announces US Competent Authority Arrangements with Australia and the UK

On September 24, 2015, the IRS announced that the Competent Authority of the United States has signed Competent Authority Arrangements (“CAAs”) with the Competent Authorities of Australia and the United Kingdom pursuant to their respective Intergovernmental Agreements (“IGAs”). These agreements are the first CAAs to be signed between the US and other partner jurisdictions. The goal of CAAs is to further strengthen partnerships between competent authorities and to ensure proper exchange of information. These agreements establish procedures for the automatic exchange obligations set forth in Article 2 of the IGAs and the exchange of information on Nonparticipating Financial Institutions under Section 1(b) of Article 4 of the IGAs, providing, among other things, detail on registration; information exchange timeline, schema format, and transmission; remediation and enforcement; and confidentiality and data safeguards. It is possible that additional CAAs may be forthcoming in the near future as competent authorities prepare for the exchange of FATCA reporting information with the US.

36 / 2015

IRS Notice 2015-66

On September 18, 2015, the IRS, in conjunction with the United States Department of the Treasury (“Treasury”), published Notice 2015-66 announcing its intent to amend the chapter 4 regulations to extend the timeline for application of certain FATCA transitional rules and to provide guidance to jurisdictions for the exchange of information for tax year 2014.

Learn more...

35 / 2015

HMRC releases draft AEOI guidance notes

On September 14, 2015, HMRC released draft Guidance intended to help Financial Institutions understand the application of the US FATCA, UK FATCA and the OECD Common Reporting Standard (CRS). The draft Guidance also provides updates around certain key issues previously raised with the HMRC, including the following:

  • Adoption of the “wider approach” under the CRS
  • The requirement to obtain Tax Identification Numbers (TIN) in non-reportable jurisdictions
  • The guidance regarding the notification of account holders prior to reporting in 2016

A link to the draft Guidance can be found here. HMRC have stated that the Guidance does not replace or override the CRS Commentary but brings together the key concepts and provides additional guidance for UK-specific issues, including where there are differences between the CRS, FATCA, and CDOT rules. HMRC have also stated that they intend to continue expanding and updating the draft Guidance.

34 / 2015

IGA Global Summary as of September 23, 2015

The development of Intergovernmental Agreements (IGAs) to implement the tax reporting and withholding procedures associated with FATCA continues. The US Treasury has released Model agreements to implement FATCA. These agreements serve as a baseline for negotiations between the US and FATCA partner countries. They continue to be updated as additional IGAs are promulgated. In addition to countries that have signed IGAs, the US Department of the Treasury will treat an IGA as “in effect' with a partner jurisdiction if the United States has reached an agreement in substance.

The “IGA Global Summary” provides a high-level summary of all countries with agreements or agreements in substance which directly line up with the updates published on the US Department of the Treasury FATCA resource center.

Learn more...

33 / 2015

IRS publishes Notice 2015-66

On September 18, 2015, the IRS published Notice 2015-66 announcing its intent to amend the chapter 4 regulations, extending the transitional rules for the following:

  • The commencement date for withholding on gross proceeds and foreign passthru payments;
  • The use of limited branches and limited foreign financial institutions; and
  • The deadline for sponsoring entities to register their sponsored entities and re-document such entities with withholding agents.

Additionally, the IRS announced its intent to amend the rules for grandfathered collateral obligations.

Deloitte’s global leadership team is currently reviewing the notice and is developing a Point of View detailing out the changes.

32 / 2015

IRS announced upcoming FATCA Registration System updates and releases new ICMM

On August 27, 2015, the IRS announced a preview of the FATCA Online Registration System updates coming late 2015. Updates to the system include the addition of financial institution (“FI”) account options.

Updates to the foreign financial institution (“FFI”) List Search and Download Tool are also coming late 2015.

On August 27, 2015, the IRS also announced its release of the new ICMM, updated on August 8, the changes for which are addressed in the ICMM Notifications User Guide and ICMM FAQs.

Learn more...

31 / 2015

IRS posts to IDES Technical and FATCA General FAQs

On August 19, 2015, the IRS posted an updated FAQ to the IDES Technical FAQs web page.

On August 25, 2015, the IRS also posted one new and two updated FAQs to the FATCA General FAQs web page.

Learn more...

30 / 2015

IRS releases updated FATCA IDES and FATCA Metadata XML Schema v1.1 User Guides

On August 13, 2015, the IRS announced that it released updated versions of the FATCA IDES User Guide and the FATCA Metadata XML Schema v1.1 User Guide. The new version of the IDES User Guide includes a page on adding or changing administrators on accounts, a section on IDES color-coded alerts, and content revisions regarding metadata files. Financial Institutions, Direct Reporting Non-Financial Foreign Entities, Sponsoring Entities, non-GIIN filers, and Host Country Tax Authorities (hereinafter “IDES Users”) should consult this guide for assistance with access and use of IDES for FATCA reporting.

The new version of the FATCA Metadata XML Schema v1.1 User Guide outlines new data elements in the metadata schema and includes new metadata sample files for illustrative purposes. IDES Users should consult this guide for assistance with preparation and validation of the IDES metadata file used in FATCA reporting.

29 / 2015

IRS posts information on sponsored entity GIIN registrations and adds new FAQ to FATCA General FAQs

On August 12, 2015, the IRS posted information on sponsored entity GIIN registrations on the FATCA Online Registration System: Information for Adding Multiple Sponsored Entities Using a File Upload web page, announcing a new feature that will be added to the FATCA Online Registration System. This new feature will allow sponsoring entities to apply for GIINs on behalf of sponsored entities and sponsored subsidiary branches, and it will facilitate submissions of files with multiple records (i.e. “bulk submissions”). These files will be in XML format and in accordance with the FATCA Registration Sponsored Entity XML Schema; the hyperlinks to the schema and the instructions for upload are both provided on the web page. The bulk submission feature will be added to the FATCA Online Registration System in late 2015, in time for the December 31, 2015, deadline for sponsored entities to obtain their own GIINs.
Learn more...

28 / 2015

OECD publishes three new reports to assist with global CRS implementation

On August 7, 2015, the OECD published a Handbook, an Update for the Voluntary Disclosure Programmes, and a Protocol. These documents are meant to assist jurisdictions and financial institutions that are implementing the Common Reporting Standard (“CRS”). CRS is a systematized exchange model that builds off of the information exchange foundations established by FATCA. This document includes detailed rules on exchange of information and associated reporting and due diligence requirements. Read more...

27 / 2015

IRS updates FATCA IDES web pages, including IDES Technical FAQs and XML Schema Best Practices

On August 10, 2015, the IRS announced that it updated the IDES Resources, IDES Testing Schedule, and FATCA XML Schema and Business Rules for Form 8966 web pages. The IDES Resources page links to numerous tools and resources to assist users with each step of the IDES process for FATCA filing. The IDES Testing Schedule page provides dates, times, and instructions for participation in IDES testing sessions. The FATCA XML Schema and Business Rules for Form 8966 page outlines and links to guidance for the FATCA XML schemas used for reporting, sender metadata files, and notifications. Read more...

26 / 2015

IRS adds two new FATCA General FAQs

On August 3, 2015, the IRS announced that it added two new FAQs to the FATCA General FAQs webpage under the “Registration Update” section. These FAQs both address the Office of Foreign Assets Control’s SDN list. The Office of Foreign Assets Control is part of the U.S. Department of the Treasury and administers and enforces economic and trade sanctions. The first FAQ provides that entities on the SDN list are not eligible to register and receive a GIIN. The second FAQ provides background information on the Office of Foreign Asset Control’s SDN list, which is “a list of individuals and companies owned or controlled by, or acting for or on behalf of, targeted countries [whose] assets are blocked and U.S. persons are prohibited from dealing with them.”

25 / 2015

IRS updates FATCA IDES Technical FAQs and warns of FATCA XML Schema Best Practices error

On July 28, 2015, the IRS announced that it updated three International Data Exchange Service (“IDES”) FAQs to the FATCA IDES Technical FAQs website. The first updated FAQ addresses the process for a Sponsoring Entity in a Model 1 IGA jurisdiction to report on behalf of its sponsored entities in Model 2 and non-IGA jurisdictions through IDES. The second addresses restricted characters in submitted XML documents due to the XML syntax rules. The third addresses recommended encryption software for signed XML files.

In addition to the Technical FAQ updates to assist with technical issues, the IRS warned that there is an error on the FATCA XML Schema Best Practices webpage related to the inclusion of entity references in FATCA XML documents. The FATCA XML schema reference documents will be updated to reflect the entity name restrictions, and the updated FAQs address the issue at present.

24 / 2015

IRS posts new FATCA IDES Technical FAQs and reminds industry of Global IT Forum

On July 14, 2015, the IRS announced that it posted several new and numerous updated International Data Exchange Service (“IDES”) FAQs to the FATCA IDES Technical FAQs website. These new and updated FAQs include the following:

  • General Questions addressing applications for data preparation, rounding of currency amounts, and sponsoring entities’ use of IDES;
  • System Availability and Design questions addressing IDES system availability for testing and use;
  • Data Format and Structure questions addressing test environment access and interpretation of restricted characters notifications;
  • Data Transmission questions addressing individual confirmations of successful uploads and submissions of FATCA Reports through IDES;
  • Data Encryption and Security questions addressing proper data encryption to use prior to XML data transmission, encryption standards implemented on the transmission path, requirements for obtaining digital certificates, and U.S. Withholding Agent (“USWA”) and Territory Financial Institution (“TFI”) completion of the FATCA XML Schema; and
  • IDES Use for Entities Not Required to Obtain a GIIN questions addressing third-party tax preparer concerns with completion of the FATCA XML Schema, receipt of alerts and notifications for submissions, enrollment to report on behalf of clients in Model 1 Option 2 FATCA Reporting countries, and enrollment issues for third-party tax preparers in Model 1 IGA jurisdictions.

The IRS also issued a reminder that it is hosting Global IT Forum sessions to present exclusively on the technical aspects of IDES. Host Country Tax Authorities (“HCTAs”), Financial Institutions, and related industry organizations are invited to attend these forum sessions, the attendance information for which can be obtained by following the instructions at the Global IT Forum webpage. The webpage also includes instructions for submitting technical questions, some of which may be addressed on the FATCA IDES Technical FAQs website.

23 / 2015

Recent legislation increases information reporting penalties

The Trade Preferences Extension Act of 2015, Public Law No: 114-27 (“Legislation”), which was signed into law on June 29, 2015, amends penalties applicable under IRC section 6721, Failure to file correct information returns, and IRC section 6722, Failure to furnish correct payee statements. The amendments apply to returns and statements required to be filed after December 31, 2015. These increases may impact taxpayers across all industries, not just within financial services. Read more...

22 / 2015

IGA Global Update

The development of Intergovernmental Agreements (“IGAs”) to implement the tax reporting and withholding procedures associated with FATCA continues. In addition to countries that have signed IGAs, the U.S. Department of the Treasury will treat an IGA as 'in effect' with a partner jurisdiction if the United States has reached an agreement in substance.

The attached “IGA Global Summary” provides a high-level summary of all countries with agreements or agreements in substance which directly line up with the updates published on the US Department of the Treasury FATCA resource center. Read more...

21 / 2015

Reminder: Form 8966 deadline for FFIs in non-IGA jurisdictions and Form 8966 filing extension deadline – June 29, 2015

In accordance with Treas. Reg. 1.1471-4T(a)(3) and the 2014 Instructions for Form 8966, all FFIs that wish to be treated as Participating FFIs must, among other things, report annually using Form 8966. This reporting obligation is imposed on all Participating FFIs within both Model 2 Intergovernmental Agreement (“IGA”) jurisdictions and jurisdictions in which no IGA has been signed (“non-IGA jurisdictions”). The deadline for Form 8966 FATCA reporting is June 29, 2015. If you have any entities within non-IGA jurisdictions, please contact Deloitte’s Global Information Reporting team immediately (contact information below). Note that “nil returns,” or returns containing no reportable accounts, are not required for Participating FFIs. Read more...

20 / 2015

IRS posts new FAQs regarding Form 8966 extension and electronic filing waiver

On June 9, 2015, the IRS posted two new FAQs to the FATCA FAQs webpage related to Form 8966 FATCA reporting. The first FAQ addresses requests for additional 90-day extensions of time to file Form 8966 for the 2014 tax year, the deadline for which is June 29, 2015. Using the Request for Additional Extension of Time to File Form 8966 for Tax Year 2014 template, submit a separate request for each filer requiring an extension. All requests will be automatically approved for eligible filers who submit a request, and, as such, the IRS will not send responses. The 2014 Instructions for Form 8966 state that additional extensions beyond the initial extension require statements of hardship. However, such statements are not necessary for tax year 2014 as the request form does not require them and requests are automatically granted.

The second FAQ addresses requests for waiver from the requirement to electronically file Form 8966, the deadline for which is August 13, 2015. Using the Request for Waiver from Filing Form 8966 Electronically for Tax Year 2014 template, submit a separate request for each filer. Further, if you do not receive a response from the IRS within 45 days of the date you mail your request, you may treat the request as granted. Note that filing this form does not affect the deadline for filing, which remains June 29 unless the extension referenced above is separately requested.

19 / 2015

Austrian Federal Ministry of Finance releases Draft of CRS-Act

The Austrian Federal Ministry of Finance (BMF) released on 12 May 2015 a draft for a new Act that will implement the OECD Common Reporting Standard (CRS) as adopted by the European Union in Directive 2014/107/EU („Bundesgesetz zur Umsetzung des gemeinsamen Meldestandards für den automatischen Austausch von Informationen über Finanzkonten (Gemeinsamer Meldestandard-Gesetz – GMSG)“). Read more...

Draft of CRS-Act (in German)

Explanatory Notes to CRS-Act (in German)

18 / 2015

Draft of the “banking package” and amendments to the Final Taxation Act

On 12 May 2015, the Austrian Ministry of Finance published the draft for legal appraisal regarding amendments to the Final Taxation Act as well as the banking package.

17 / 2015

IDES enrollment process for USWAs, TFIs, vendors and third party preparers is now available

On May 8, 2015, the IRS posted instructions on the IRS webpage for IDES enrollment for users that are required to report through IDES but are not required to obtain a Global Intermediary Identification Number (‘GIIN”). These users, which include USWAs, TFIs, commercial software vendors, and third party preparers, are now able to obtain a FATCA Identification Number (“FIN”), a 19-character identifier that will allow users to enroll and access IDES. Users must consent to IRS publication on the Foreign Financial Institution (“FFI”) List when requesting a FIN because it constitutes confidential return information. The FIN must appear on the June FFI List for users to enroll in IDES in time for reporting. Users must register for a FIN by May 20, 2015 in order to report by the June 29, 2015, deadline. Read more...

16 / 2015

Notice 2015-10

On April 28, 2015, the Internal Revenue Service (“IRS”) released Notice 2015-10: Guidance on Refunds and Credits under Chapter 3, Chapter 4, and Related Withholding Provisions. In the Notice, the IRS announced its intent to amend the U.S. Treasury Regulations applicable to claims for refund or credit for amounts overwithheld under Chapters 3 and 4.

As a response to IRS concerns about refunds and credits issued to non-resident aliens before the full amount of tax had been collected, the amended regulations would aim to prevent claimants from obtaining a refund or credit that is in excess of the amount that has been deposited by the withholding agent. This change will limit refund and credit claims, even when the claimant can demonstrate that the amount of withholding reported by the withholding agent on Form 1042-S was in excess of the amount required under Chapter 3 or 4.

The amended regulations will apply to refund and credit claims for amounts withheld with respect to calendar year 2015 and later. Read more...

15 / 2015

Cayman Islands’ Tax Information Authority announces Automatic Exchange of Information portal opening

On March 20, 2015, the Cayman Islands’ TIA launched the AEOI portal, accessible through the Cayman Islands Department for International Tax Cooperation website, to facilitate US FATCA and UK CDOT reporting by Reporting Financial Institutions (“RFIs”) to the TIA. RFIs are required to complete the notification form and register on the AEOI portal by April 30, 2015, and report FATCA information to the TIA, which is the Host Country Tax Authority (“HCTA”) for Cayman Island RFIs, by May 31, 2015. Read more...

14 / 2015

IRS clarifies nil reporting requirements and reporting deadline for Form 8966

On March 24, 2014, the IRS posted two new FAQs to the FATCA FAQs page under the “Reporting” section. The first FAQ addresses which filers are required to file a nil report using Form 8966. The second FAQ clarifies the Form 8966 filing deadline after the automatic 90-day extension provided by the IRS for the 2014 calendar year for all filers. Read more...

13 / 2015

IRS announces new FATCA IDES test session

On March 2, 2015, the IRS announced that it will be holding another International Data Exchange Service (“IDES”) test session to allow enrolled IDES users to upload and transmit a test data packet in preparation for Form 8966 FATCA reporting using the IDES web application. The test session will open on March 10, at 2:00 a.m. EDT, close on March 12, at 5:00 p.m. EDT, and is available to host country tax authorities (“HCTAs”) and foreign financial institutions (“FFIs”) that completed IDES enrollment by March 5, 2015, at 5:00 p.m. EST. Participation in this test session is recommended as the IDES web application is the platform used for all electronic Form 8966 filings, which is required for the majority of Form 8966 filers. Read more...

12 / 2015

IRS posts new FAQ to the FATCA webpage clarifying Nil report procedures

On February 20, 2015, the Internal Revenue Service (“IRS”) posted a new FAQ to the FATCA webpage under the “Data Format and Structure” subsection of the FATCA IDES Technical FAQs page, Question C19 (as of March 3, 2015). This FAQ is relevant for any entity required to report directly to the IRS such like a Reporting Austrian Financial Institution. Read more...

10 / 2015

IRS posts new FAQ to the FATCA webpage clarifying due diligence procedures

On February 2, 2015, the Internal Revenue Service (“IRS”) posted a new FAQ to the FATCA webpage under the General Compliance category, Question 10. This FAQ is relevant to Reporting Model 1 or Model 2 Foreign Financial Institutions (“FFIs”) applying the due diligence procedures provided in the applicable FATCA intergovernmental agreement (“IGA”).
Read more...


09 / 2015

IRS posted new Form and Instructions

On January 20, 2015, the IRS posted the new Form 1099-R and Instructions for Forms 1099-R and 5498. The IRS also posted Instructions for Form 8938, following the January 5, 2015, posting of the new Form 8938. Finally, the IRS posted General Instructions for Certain Information Returns (“Form 1099 General Instructions”) encompassing Forms 1097, 1098, 1099, 3921, and 3922. Read more...

08 / 2015

IGA Global Summary as of January 30, 2015

The development of Intergovernmental Agreements (“IGAs”) to implement the tax reporting and withholding procedures associated with FATCA continues. In addition to countries that have signed IGAs, the U.S. Department of the Treasury will treat an IGA as 'in effect' with a partner jurisdiction if the United States has reached an agreement in substance.

The attached “IGA Global Summary” has been developed by the Deloitte Global FATCA PMO and provide a high-level summary of the status of all countries with agreements or agreements in substance.

Download the IGA Global Summary here...

07 / 2015

IRS Announces the Opening of IDES Enrollment, Updates IDES FAQs and User Guide, and Issues Metadata XML Schema v1.0 User Guide

On January 12, 2015, the IRS announced the opening of the International Data Exchange Service (“IDES”) site and issued updates to the Frequently Asked Questions (“FAQs”). This was on the heels of the January 6, 2015 announcement related to the updates to the IDES User Guide and issuance of the Metadata XML Schema v1.0 User Guide. The purpose of IDES is the secure transmission of FATCA data by Host Country Tax Authorities (“HCTAs”) and Foreign Financial Institutions (“FFIs”). Enrollment on the IDES web application, which facilitates this transmission, is required by HCTAs and FFIs, and the FAQs and these two guides are intended to help users navigate the application and upload required FATCA information. Read more...

06 / 2015

IRS Issues IDES Web Application Alerts

On January 14, 2015, the IRS issued three alerts related to the International Data Exchange Services (“IDES”) web application which opened for enrollment on January 12, 2014. In summary, a problem had been identified where FATCA XML documents fail schema validation because of the use of default namespaces. In addition, the list of Schema Prohibited Characters has been expanded for security purposes. And lastly, for purposes of IDES enrollment, users are reminded of the requirement to obtain a valid digital certificate issued by an approved certificate authority. Read more...

05 / 2015

IRS Issues Updated Forms 1042-S and 8938; Revises Publication 515

On January 5, 2015, the IRS issued new versions of Forms 1042-S and 8938 for the 2015 taxable year as well as revisions to Publication 515.

Read more...

04 / 2015

IRS Released New Form W-9

The IRS released a new Form W-9, Request for Taxpayer Identification Number and Certification and accompanying instructions for 2014.
Changes to the updated form since the August 2013 version are highlighted here...

03 / 2015

IRS Posts FAQ on IGA Registration Post- Announcement 2014-38

On December 22, 2014, the IRS posted a new FAQ regarding IGA Registration to the FATCA website.

The original release of Announcement 2014-38 extended Agreed-in-Substance Intergovernmental Agreements (“IGAs”) beyond December 31, 2014. The IRS has now clarified that the announcement does not change any registration, due diligence, or reporting requirements or deadlines. Specifically, a reporting Model 1 Foreign Financial Institution (“FFI”) should still register with the IRS and obtain a Global Intermediary Identification Number (“GIIN”) in order to certify its Chapter 4/FATCA status and avoid withholding on certain payments made on or after January 1, 2015.

Consistent with the Regulations, if a reporting Model 1 FFI has registered and not yet obtained a GIIN, it may write “applied for” in the GIIN box on Form W-8. The withholding agent will then have 90 days to obtain and validate the GIIN. In an update to its FFI registration website, the IRS has stated that the closing date for Financial Institution registration approval and listing on the January 2015 FFI list is December 23, a day later than previously announced. Read more...

02 / 2014

IRS Issues Supplement to Instructions for Form 8966, IDES User Guide

On December 17, 2014, the IRS issued two updates via its FATCA News & Information subscription service.

The IRS posted to its FATCA page an Update to the Instructions for Form 8966 for 2014, correcting and clarifying certain reporting requirements for 2014. This update supplements the current Instructions for Form 8966 and should be relied upon until its incorporation into the 2015 instructions.

Additionally, the IRS released a draft version of the International Data Exchange Services (“IDES”) User Guide. IDES is the web application that Financial Institutions and Host Country Tax Authorities (“HCTAs”) can use to facilitate FATCA reporting. This guide provides FIs and HCTAs with procedures for data preparation and reporting. Users should expect to see several updates from the IRS until the final version is issued in early January 2015. Read more...

01 / 2015

On December 1, 2014 the IRS released Announcement 2014-38 to address growing concern over the approaching December 31, 2014 deadline for jurisdictions with FATCA agreements in substance to sign an Intergovernmental Agreement (“IGA”). Pursuant to Announcement 2014-17 (released April 2, 2014), a jurisdiction that reached an agreement in substance with the United States related to the terms of an IGA by June 30, 2014 would be treated as if an IGA was in effect, provided the jurisdiction signed the IGA by December 31, 2014. Read more...

43 / 2014

Over the course of the last several weeks, the IRS has issued multiple updates via its FATCA News & Information subscription service.
On October 27, 2014 the IRS posted a new FAQ outlining the method of locating a branch on the FFI list using the branch’s GIIN, as set forth below. Read more...

42 / 2014 

on October 29, 2014, the Organization for Economic Co-operation and Development (“OECD”) distributed a press release announcing the endorsement by all OECD and G20 countries as well as major financial centers participating in the Global Forum on Transparency and Exchange of Information for Tax Purposes (“Global Forum”) of the standard on automatic exchange of information (“AEOI”).

51 jurisdictions signed the Multilateral Competent Authority Agreement (“MCAA”) during the Global Forum, which was attended by 39 ministers. According to the press release, this constituted the largest gathering of ministers to take joint action to address tax evasion.

The press release contains links to the Status Report on committed and not committed jurisdictions that will be presented to G20 leaders on November 15-16, 2014.

In summary, 93 countries will implement CRS in order to comply with the automatic exchange of information required by the MCAA. Read more...

41/2014

we previously announced that the validity of non-U.S. approved self-certifications may be called into question because of language included in certain portions of the Intergovernmental Agreement (“IGA”) stating that the Foreign Financial Institution (“FFI”) may use a Form W-8/W-9 “or other similar agreed form” to document an account holder. The IRS has updated the FATCA General Frequently Asked Questions (“FAQs”) on its website to address this language and define what it considers to be “a similar agreed form”. Read more...

40 / 2014

In-depth Analysis Incorporating Notice 2014-33

Based upon requests and feedback received, we’d like to recirculate the
FATCA In-depth analysis incorporating Notice 2014-33. Highlights within the analysis include:

• Overview and history of FATCA
• Withholdable payments under FATCA
• Entity classification
• USWA requirements
• FFI requirements
• Administrative considerations

In-depth Analysis

39 / 2014

Validity of Non-U.S. Approved Self-Certifications in Question

Based upon guidance from the U.S. Department of the Treasury (“Treasury”), a Treasury official indicated that self-certifications used by Foreign Financial Institutions (“FFIs”) in Intergovernmental Agreement (“IGA”) jurisdictions must be approved by the Treasury for the forms to be considered valid. The position is grounded on language included in certain portions of the IGA stating that the FFI may use a Form W-8/W-9 to document an account holder “or other similar agreed form.” This language does not appear in the requirements for new account holders, but rather in the due diligence language for pre-existing account holders. As such, it is unclear whether Treasury will limit the approval requirement for self-certifications acquired in connection with pre-existing account due diligence or whether approval will be required for any self-certification used by an FFI in an IGA jurisdiction. To clarify its position, Treasury is currently working on further guidance regarding the approval process for self-certifications. Read more...

38 / 2014

IGA Global Update
The development of Intergovernmental Agreements (“IGAs”) to implement the tax reporting and withholding procedures associated with FATCA continues. In addition to countries that have signed IGAs, the U.S. Department of the Treasury will treat an IGA as 'in effect' with a partner jurisdiction if the United States has reached an agreement in substance. The attached slides provide you with a high-level summary of the status as of 26 August 2014. 

IGA Global Summary

37 / 2014

IRS Releases Revenue Procedure 2014-47

On August 8, 2014, the IRS issued Revenue Procedure 2014-47 (“Rev. Proc. 2014-47”) updating application procedures and requirements for entering into Withholding Foreign Partnership (WFP) and Withholding Foreign Trust (WFT) Agreements. These updated WFP and WFT Agreements incorporate the requirements under FATCA and replace the WFP and WFT Agreements originally published in Revenue Procedure 2003-64 (and thereafter amended). WFP and WFT should review the updated Agreement to understand the additional requirements pursuant to their renewed Agreements. Additionally, those foreign partnerships and trusts wishing to become WFP and WFT should review the application procedures contained within Rev. Proc. 2014-47. Read more...

Further information related to Rev. Proc. 2014-47 can be found here.

36 / 2014

An update regarding the new QI Agreement

On 23 July, the IRS released a bulletin encouraging entities to renew or obtain a QI Agreement by 31 July 2014. This follows on from Revenue Procedure 2014-39 that contained the new QI Agreement. If you have provided the required information to the IRS as part of your FATCA registration to renew a QI Agreement no further action should be required. If you have not provided this information yet, we recommend this is completed by 31 July in order to ensure that your QI Agreement is renewed. We have set out below an overview of the main changes arising from the new QI agreement. Read more...

IRS Bulletin released 23 July 2014

35 / 2014

IRS Releases Instructions for the Requestor of Forms W-8

On July 18, 2014, the IRS released the Instructions for the Requester of Forms W-8BEN, W-8BEN-E, W-8ECI, W-8EXP, and W-8IMY (“Requester Instructions”). The Requester Instructions supplement the instructions for the noted Forms and can be used to help withholding agents and Foreign Financial Institutions (“FFIs”) in validating the Forms for both chapter 3 and 4 purposes. The Requester Instructions also generally set forth the due diligence requirements applicable to withholding agents for establishing a beneficial owner’s foreign status and claim for treaty benefits. Read more...

Instructions for the Requester of Forms W–8BEN, W–8BEN–E, W–8ECI, W–8EXP, and W–8IMY

34 / 2014

IRS Released Technical Corrections to FATCA and Chapters 3 & 61 Regulations

On June 30, 2014, the IRS released for publication on the Federal Register, the promised technical corrections to both FATCA regulations and the chapter 3 and 61 coordination regulations. The original FATCA regulations and chapter 3 and 61 coordination regulations were released in February 2014, however certain errors and unclear provisions were discovered after publication to the Federal Register. The technical corrections are meant to fix these errors and clarify certain other sections. Read more...

Technical Corrections to FATCA

Chapters 3 & 61 Regulations

33 / 2014

Instructions for Form 1042-S Released

On June 26, 2014, the IRS released Instructions for the Form 1042-S, Foreign Person's U.S. Source Income Subject to Withholding, covering tax year 2014. This is important guidance for the development of reporting procedures for the implementation of both FATCA and the updated chapter 3 requirements. The Form 1042-S is used by withholding agents to report U.S. source payments and amounts withheld on such payments to non-U.S. persons under FATCA and chapter 3. Read more...

Form 1042-S

Instructions for Form 1042-S

32 / 2014

IRS Released Updated Qualified Intermediary Agreement

On June 27, 2014, the IRS released Revenue Procedure 2014-39, updating prior guidance applicable to foreign intermediaries seeking to enter into a Qualified Intermediary (“QI”) Agreement with the IRS or such intermediaries planning to continue QI operations. The modified QI Agreement reflects the recent updates to Treasury regulations under chapters 3, 4, and 61 of the Internal Revenue Code (“Code”) as well as to Code section 3406. The updated requirements contained in this Revenue Procedure are applicable to QIs on or after June 30, 2014. Read more...

Revenue Procedure 2014-39

31 / 2014

Forms W-8BEN-E and 8966 Final Instructions & Updated FFI Agreement

The IRS has released the highly anticipated Instructions to accompany the final Forms W-8BEN-E and 8966. This follows the release of the Instructions to Form W-8IMY. The IRS additionally released an updated FFI Agreement for Participating FFIs and Reporting Model 2 FFIs. Deloitte’s FATCA PMO is currently reviewing the new guidance and will provide comments in the near future. Read more...

Instructions for Form W-8BEN-E

Instructions for Form 8966

FFI Agreement for Participating FFI and Reporting Model 2 FFI

30 / 2014

The U.S. & China Reach FATCA Agreement in Substance

On June 26, 2014, the U.S. and China reached an agreement in substance to implement the Foreign Account Tax Compliance Act (FATCA) through a Model 1 Intergovernmental Agreement (“IGA”). As China is one of the U.S. largest trading partners, this is a substantial development in achieving overall tax compliance through information sharing agreements. China will now be treated as having an agreement “in effect” for compliance purposes, easing the potential 30% withholding tax imposed on Chinese financial institutions under FATCA. China will have through the end of the year to finalize and sign the IGA in order to retain the Model 1 status.

Read more...

29 / 2014

Details on Final Version of Form W-8IMY and Instructions

The IRS has released 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” (dated April 30, 2014) (“Form”). The Form, consisting of 8 pages, maintains the majority of the chapter 4 additions to the previously issued draft as of August 2013 while incorporating additional information to reflect recent chapter 4 clarifications. The 8 page Form is substantially larger than the previous version, containing various classifications required under chapter 4 accompanied by an additional 16 pages of Instructions that were released on June 19, 2014. Read more...

Form W-8IMY

Instructions for Form W-8IMY

28 / 2014

U.K. position on Notice 2014-33

The U.K. has determined it will not adopt the delay to the onboarding of new entity accounts proposed by IRS Notice 2014-33. According to an announcement by the HMRC, U.K. financial institutions will be required to obtain self-certifications from new customers, both entities and individuals, from July 1st, 2014. The communication indicates that this determination will maintain the consistency between entity and individual onboarding processes as well as between due diligence obligations established for U.S. and U.K. FATCA reporting purposes.
Read more...

27 / 2014

Foreign Financial Institution Registration List Now Available

On June 2, the IRS published the first list of FATCA compliant Foreign Financial Institutions (“FFIs”). This list contains information related to more than 77,000 FFIs that registered with the IRS as of May 23, 2014 to be compliant with FATCA as either participating FFIs or otherwise registered deemed compliant FFIs (including Reporting Model 1 FFIs). The list may also include limited FFIs and sponsoring entities. (Note that the IRS previously indicated that FFIs needed to be registered by May 5, 2014 to appear on this first FFI List.)
Read more...

The FFI list can be found at http://apps.irs.gov/app/fatcaFfiList/flu.jsf

26 / 2014

IRS published 2014 Form 1042 and instructions

On May 8, 2014, the IRS has published the 2014 Form 1042 (Annual Withholding Tax Return for U.S. Source Income of Foreign Persons) and corresponding instructions. The Form 1042 for 2014 has been modified from the Form 1042 used for prior years, primarily for withholding agents to report payments and amounts withheld under FATCA, or chapter 4 of the Internal Revenue Code (Code) in addition to those payments and amounts required to be reported pursuant to the existing withholding and reporting rules under chapter 3 of the Code. Form 1042 adds lines for reporting of the tax liability under chapters 3 and 4, includes separate chapters 3 and 4 status codes for withholding agents, and provides for a reconciliation of U.S. source fixed or determinable annual or periodical (FDAP) income payments that are withholdable payments for chapter 4 purposes. Withholding agents that make nonfinancial payments generally will not be affected by the new requirements under chapter 4.
Read more...

Form 1042

Instructions for Form 1042

25 / 2014

Austria and United States sign an Intergovernmental Agreement on FATCA 

On April 29, 2014, Austria and the United States signed an intergovernmental agreement (“IGA”) to improve international tax compliance and to implement the Foreign Account Tax Compliance Act (FATCA). Austria was previously included by the U.S. Treasury in the list of countries treated as having an IGA in effect (please see FATCA News No. 17/2014).

This agreement is based on the Model 2 IGA requiring Austrian Reporting Financial Institutions to register as participating FFIs with the U.S. with the exception of exempted or certified deemed-compliant financial institutions. The rules of the FFI Agreement will generally apply to such participating FFIs, unless modified by the rules outlined in the Model 2 IGA.

Austrian Reporting Financial Institutions will have the option to either apply the due diligence rules in the final regulations or those contained within Annex I of the Austrian Model II IGA. Unlike the Model 1 IGA, Austrian Reporting Financial Institutions will be obliged to report U.S. accounts directly to the U.S. Internal Revenue Service (IRS), as opposed to reporting to the Austrian local authorities for further intergovernmental exchange.

So far Model 2 IGA has been elected only by a few countries including Austria as the only EU member state.

Annex II of the IGA includes a country-specific list of financial institutions, products and accounts that are exempt or deemed compliant.

For the text of the Agreement (in German and in English), please click on the links below. 

German

AbkommenAnhang I | Anhang IIMemorandum of Understanding

English

Agreement | Annex I | Annex IIMemorandum of Understanding

 

24 / 2014

IRS Notice 2014-33 Provides Relief on Implementation of FATCA and Coordination Rules

On May 2, 2014, the IRS released Notice 2014-33 announcing that any enforcement actions for the calendar years 2014 and 2015 under FATCA and the temporary coordination regulations under chapters 3 and 61, and section 3406 will take into consideration the good faith efforts of foreign financial institutions (FFIs) and withholding agents to comply with those provisions. The Notice also provides some additional relief under FATCA and chapter 3; including relief for onboarding entity account holders from July 1, 2014 to December 31, 2014. Read more...

Notice 2014-33

23 / 2014

Notice 2014-33

On May 2, 2014, the IRS released Notice 2014-33 announcing that any enforcement actions for the calendar years 2014 and 2015 under FATCA, and the temporary coordination regulations under Chapter 3, Chapter 61, and Section 3406, will take into consideration the good faith efforts of withholding agents in the event such withholding agents experience a compliance failure. The Notice also provides some additional relief under FATCA and Chapter 3, including relief for onboarding entity account holders from July 1, 2014 to December 31, 2014 (the relief does not apply to individual account holders).

Notice 2014-33

A detailed analysis will be released in the coming days.

 22 / 2014

Honduras and the U.S. sign FATCA Intergovernmental Agreement

On March 31, 2014, the Republic of Honduras and the United States signed an Intergovernmental Agreement (“IGA”) to improve international tax compliance with respect to FATCA. The agreement is based on the Model 1A agreement and includes the FATCA deadlines consistent with Notice 2013-43. 

Similar to the Mexico IGA, the Honduran IGA requires Reporting Honduran Financial Institutions, to report the average monthly account balance or value of each reportable U.S. account (including for Cash Value Insurance Contracts or Annuity Contracts, the Cash Value or surrender value) or, if the account was closed during the year, the average monthly balance for the calendar year up to the time of closure. Read more...

21 / 2014

Luxembourg and the U.S. sign FATCA Intergovernmental Agreement

On March 28, 2014, Luxembourg and the United States signed an Intergovernmental Agreement (“IGA”) to Improve International Tax Compliance with respect to FATCA. The IGA is based on the most recent version of the Model 1-A IGA and includes the FATCA deadlines consistent with Notice 2013-43. However, the Luxembourg FATCA IGA includes certain modifications related to written notifications to be exchanged between the Competent Authority of each signatory country with respect to the safeguards to ensure the confidentiality of the information and infrastructure for an effective exchange relationship. The commonly known “most favored nation clause” requires Luxembourg to decline in writing the application of more favorable terms under Article 4 or Annex I of the IGA for another Partner Jurisdiction. Read more...

20 / 2014

IRS Released Final Form W-8BEN-E for Entities

On March 29, 2014, the IRS announced the release of the final Form W-8BEN-E, “Certificate of Status of Beneficial Owner for United States Tax Withholding and Reporting (Entities).” The updated form will be used by foreign entities to certify their status under FATCA and chapter 3, as well as their entitlement to treaty benefits. No instructions were published with the form itself. The form is eight pages long (the current final Form W-8BEN is only one page) and changes include the new chapter 4 classifications introduced in the final and temporary FATCA regulations as well as modifications to the certifications pertaining to such classifications. Read more...

19 / 2014

The Czech Republic, Croatia, Slovenia and Estonia added to List of Identified Countries with Pending Intergovernmental Agreements (“IGAs”)

The U.S. Treasury Department added four additional countries to the list of pending IGAs that have been agreed to in substance and will be treated as having signed bilateral agreements with the United States until the end of the year.

Announcement 2014-17 indicated that Treasury expects to add jurisdictions to this list in the coming weeks as additional jurisdictions consent to inclusion on the list and additional agreements in substance are reached. 

The following four countries were added to the list

Model 1 IGA

  • Croatia
  • Czech Republic
  • Estonia
  • Slovenia

Deloitte suggests periodically reviewing the U.S. Treasury website to stay on top of further updates.

18 / 2014

FATCA Announcement 2014-17: Extends Registration Deadline and Identifies Countries, including Austria, with Pending Intergovernmental Agreements (“IGAs”)

On April 2, 2014, the U.S. Treasury Department issued Announcement 2014-17 to indicate that it will treat more than a dozen countries that have agreed in substance on the terms of an IGA with the United States as having signed bilateral agreements until the end of the year. Read more...

17 / 2014

The U.S. and the British Virgin Islands Conclude FATCA Negotiations

On March 11, 2014, the British Virgin Islands Government announced that it has concluded negotiations with the United States on a Model I Intergovernmental Agreement (“IGA”) and that signing is imminent. Read more...

16/2014

IRS Publishes Final 2014 Form 1042-S

On March 10, 2014, the IRS published the final version of the Form 1042-S. The prior draft version was originally published in April 2013. The updated final version of the form includes several changes necessary because of changes in the recently released temporary and final FATCA (Chapter 4) regulations. Based on the latest FATCA regulations, withholding agents will use the new Form 1042-S for reporting under both Chapter 3 (current non-resident alien withholding tax regime) and FATCA. Read more...

15/2014

Finland and the U.S. sign FATCA Intergovernmental Agreements

On March 5, 2014, Finland and the United States signed an Intergovernmental Agreement (“IGA”) to improve international tax compliance with respect to FATCA. The agreement is based on the Model 1A agreement and includes FATCA deadlines consistent with those in Notice 2013-43. However, unlike recent Model 1 IGAs, the Finnish IGA does not contain provisions that written notifications be exchanged between the Competent Authority of each signatory country on safeguards to ensure the confidentiality of the information and infrastructure for an effective exchange relationship. Read more...

Chile and the U.S. sign FATCA Intergovernmental Agreements

Also on March 5, 2014, Chile and the United States signed an IGA for cooperation to facilitate the implementation of FATCA. The agreement is based upon the Model 2 IGA and includes FATCA deadlines consistent with those in Notice 2013-43. Chile is the fourth country to sign a Model 2 version of the IGA joining Japan, Switzerland and Bermuda. Few Model 2 IGAs are expected to be signed due to the popularity of the Model 1 country reporting and reciprocal sharing of information. Read more...

14/2014

IRS Publishes Final Form W-8ECI (with instructions)

On March 4, 2014, the IRS released the final Form W-8ECI, “Certificate of Foreign Person's Claim That Income Is Effectively Connected With the Conduct of a Trade or Business in the United States.” The following day, the IRS released the Instructions for the Form. Read more...

IRS Publishes Final Form 8966

In addition, on March 6, 2014, the IRS published the final Form 8966, “FATCA Report”. Foreign Financial Institutions (FFIs) required to perform FATCA reporting will use the Form 8966 to report U.S. financial accounts, financial accounts held by passive non-financial foreign entities (NFFEs) with substantial U.S. owners and financial accounts held by owner-documented FFIs with specified U.S. owners. Read more...

13 / 2014

Release of Updated Final Version of Form W-8BEN (with instructions) for Individuals

On March 4, 2014, the IRS released a finalized version of Form W-8BEN for individuals. In addition to the changes included in the draft released in June 2012, the finalized version adds (i) a date of birth field and (ii) language in the “Certification” section requiring the signatory to agree to submit a new form within thirty days of any change that would make any certification on the form incorrect. The addition of the date of birth field is an expected outcome of the U.S. entering into reciprocal Intergovernmental Agreements (“IGAs”) with other countries to implement FATCA. Read more...

12 / 2014

Initial Analysis in Response to the Final FATCA and Coordination Regulations

On Thursday, February 20, 2014, the U.S. Department of Treasury (“Treasury”) and the Internal Revenue Service (“IRS”) released temporary regulations that revise and clarify the final FATCA regulations (“Temporary Regulations”). The government also released temporary regulations coordinating the final regulations under Chapters 3 and 61 of the Internal Revenue Code (“Code”) with the final FATCA (Chapter 4) regulations (“Coordination Regulations”). The new rules do not provide any further extensions to the effective date of FATCA, or to the required timeframes in which an FFI that has entered into an FFI Agreement (a “participating FFI” or “PFFI”) must comply with the due diligence, withholding or reporting obligations under the agreement. 
Read more...

11 / 2014

Updated FATCA and Coordination Regulations: Important Considerations for Financial and Non-Financial Institutions

On February 20, the U.S. Treasury Department and the IRS released rules revising the final Foreign Account Tax Compliance Act (FATCA) regulations and regulations coordinating Chapters 3, 4, and 61. The July 1, 2014 effective date of FATCA remains.

10 / 2014

Updated FATCA and Coordination Regulations Released

Yesterday, the U.S. Treasury Department and the IRS released Regulations revising and further clarifying the final FATCA regulations under chapter 4 as well as Regulations to coordinate the FATCA regulations under chapter 4 with the withholding and information reporting rules under chapters 3 and 61, and section 3406.

Deloitte will be providing an overview document that will include a comparison of new or amended impacts and implications with the previous regulations. We will complete this initial review and an in-depth analysis as soon as possible. Read more ...

09 / 2014

OECD Releases Model of Competent Authority Agreement and Common Reporting Standard Model

On February 13, 2014, the Organisation for Economic Co-operation and Development (OECD) released the text of the "Model Competent Authority Agreement (CAA) and Common Reporting Standard and Due diligence for Financial Account Information (CRS)". The Model CAA contains the detailed rules on the exchange of information between jurisdictions (previously obtained from their financial institutions) on an annual basis and the Model of CRS contains the reporting and due diligence rules that the financial institutions will be required to implement under CRS. Read more...

The following 40 countries have committed to early adoption of the standard: Argentina, Belgium, Colombia, Cyprus, Czech Republic, Denmark, Finland, France, Germany, Greece, Hungary, Iceland, India, Ireland, Italy, Liechtenstein, Lithuania, Luxembourg, Malta, Mexico, Netherlands, Norway, Poland, Portugal, Romania, Slovakia, Slovenia, South Africa, Spain, Sweden, United Kingdom; the UK's Crown Dependencies of Isle of Man, Guernsey and Jersey; the UK's Overseas Territories of Anguilla, Bermuda, British Virgin Islands, Cayman Islands, Gibraltar, Montserrat, Turks and Caicos.

08 / 2014

Canada FATCA Intergovernmental Agreement

After months of negotiations, on February 5, 2014 Canada and the United States signed an Intergovernmental Agreement (“IGA”) to improve international tax compliance with respect to FATCA. Although the agreement is not based on the most recent Model 1A agreements, the Canadian Model 1 Reciprocal Agreement includes the FATCA deadlines consistent with Notice 2013-43. Read more...

Hungary FATCA Intergovernmental Agreement

In addition, on February 4, 2014, Hungary and the United States signed an Intergovernmental Agreement (“IGA”) to improve international tax compliance with respect to FATCA. The agreement is based on the Model 1A agreement and includes the FATCA deadlines consistent with Notice 2013-43. Read more...

Mauritius FATCA Intergovernmental Agreement

Lastly, on December 27, 2013, Mauritius and the United States signed an Intergovernmental Agreement (“IGA”) to improve international tax compliance with respect to FATCA. The agreement is based on the Model 1A agreement and includes the FATCA deadlines consistent with Notice 2013-43. Read more...

07 / 2014

Italy and the U.S. sign FATCA Intergovernmental Agreement

On January 10, 2014, Italy and the United States signed an Intergovernmental Agreement (“IGA”) to improve international tax compliance with respect to FATCA. Although the agreement is not based on the most recent Model 1A agreements, the Italian Model 1 Reciprocal Agreement includes the FATCA deadlines consistent with Notice 2013-43. Read more...

06 / 2014

IRS Publishes Corrected FFI Agreement in Updated Revenue Procedure 2014-13

On January 13, 2014, the IRS published an updated version of the FFI Agreement in Revenue Procedure 
2014-13 containing certain minor corrections to the original December 27th release. Read more...

05 / 2014

IRS Announces Update on FATCA Financial Institution Registration (Announcement 2014-1)

On December 16, 2013, the IRS restated that, as announced in Notice 2013-43, the FATCA Registration System has been accessible since August 19, 2013 and that all information entered into the system is saved. However, final submission cannot be completed until after December 31, 2013 even if already submitted. The IRS and Treasury anticipate that the FFI Agreement will be finalized and published prior to January 1, 2014. Qualified Intermediaries (“QIs”), withholding foreign partnerships (“WP”) and withholding foreign trusts (“WT”) are also reminded that they should renew their QI/WP/WT agreements during the registration process using the appropriate questions. Read more...

04 / 2014

Austria will join Early Adopters of CRS

According to a Press Release of the Council of the European Union, Austria announced that it will join the other EU member states in starting exchanging information automatically under the revised EU Administrative Cooperation Directive for the first time by the end of September 2017. 

The revised EU Administrative Cooperation Directive (“directive 2011/16/EU on administrative cooperation in the field of direct taxation”) implements the OECD’s Automatic Exchange of Information / Common Reporting Standard (“CRS”).

Austria will, therefore, not make use of a derogation it obtained when political agreement was reached in October 2014. When Austria has been granted an additional year for the implementation, it committed to consult with industry to see if it would be possible for it to start applying the automatic exchange earlier than 2018 along with other OECD "earlier adopters". This seems now to be the case.

The OECD Council published the new global standard, the "Common Reporting Standard" ("CRS"), in July 2014. The new standard was endorsed by G20 finance ministers and central bank governors in Cairns on 20 and 21 September

04 / 2014

50 countries sign Agreement to implement the Common Reporting Standard

A Multilateral Competent Authority Agreement was signed yesterday in Berlin at the Global Forum on Transparency and Exchange of Information. This will implement the OECD Automatic Exchange of Information standard in a total of 50 jurisdictions. The signatory jurisdictions have committed to adopt the Common Reporting Standard (CRS) from 1 January 2016 and other countries will follow later. Under the new standard, governments are required to collect detailed information from financial institutions to be shared with other jurisdictions annually. All EU members, except Austria, which will follow one year later, will introduce the CRS from 1 January 2016 and it is expected that the EU Savings Directive will be gradually phased out. The first automatic exchanges of information will take place in September 2017 and will result in a significant increase in compliance requirements for financial institutions of the signatory jurisdictions.

03 / 2014

IRS Publishes Final FFI Agreement in Revenue Procedure 2014-13

On December 27, 2013, the IRS published Revenue Procedure 2014-13 (Rev. Proc. 2014-13) containing the final FFI Agreement. This release meets the deadline the IRS set for itself to finalize the agreement originally released in draft form in Notice 2013-69. As with the draft FFI Agreement in Notice 2013-69, the final FFI Agreement relies heavily on the Section 1.1471-4 of the IRS Regulations for its substantive requirements. 
Read more...

03 / 2014

Recent IRS Publications

On December 19, 2013, the IRS published the FATCA FFI List Resources and Support Webpage and FFI List FAQs. The FATCA FFI List Resources Webpage announces that a search tool will be available to the public beginning in June 2014 to assist withholding agents in locating FATCA compliant individual or groups of FIs and their branches. The tool will also support a partial and full download of data and can be exported in CSV, XML, or PDF formats. The site will provide tips on searching using the tool. Additionally, a complete list of all FATCA compliant FIs and branches will be available. Read more...

In addition, on December 19, 2013, the IRS published the FATCA International Data Exchange Webpage and the Intergovernmental FATCA XML Schema. The FATCA International Data Exchange Webpage announces that the IRS has finalized the format for exchanging FATCA data with IGA jurisdictions known as the IGA FATCA XML Schema (version 1.1). Read more...

 

02 / 2014

On October 14, 2014, the European Council agreed on a Draft Directive to amend Directive 2011/16/EU on administrative cooperation on the field of direct taxation. 

According to the Press release from the Council of the European Union and the Memo containing Frequently Asked Questions prepared by the European Commission, the purpose of the amendments is implementing the OECD’s Automatic Exchange of Information / Common Reporting Standard (“CRS”) into the EU Administrative Cooperation Directive.

It is announced that the amendments to be included in Directive 2011/16/EU will provide the legal framework for the 28 Member States to apply the CRS amongst themselves by 2017. Therefore, 2017 the Member states will automatically exchange information with each other based on the CRS standard.

Austria, has been granted an additional year for the implementation. However, Austria also committed to consult with industry to see if it would be possible for it to start applying this wide scope automatic exchange earlier than 2018.

The proposal brings interest, dividends and other income, as well as account balances and sales proceeds from financial assets, within the scope of the automatic exchange of information.

The proposal stipulates that after becoming effective only the European Commission shall negotiate agreements with third countries on Automatic Exchange of Information on behalf of the Union and Member States shall not engage in bilateral agreements.

In order to have just one standard of automatic exchange and to avoid legislative overlaps, the European Commission will consider the repeal of the Savings Directive.

02 / 2014

U.K. Crown Dependencies FATCA Intergovernmental Agreements

On December 13, 2013, Jersey, Guernsey, and the Isle of Man (“U.K. Crown Dependencies”) signed separate Intergovernmental Agreements (“IGAs”) with the United States to improve international tax compliance with respect to FATCA. Despite the fact the agreements were not based on the Model 1A Reciprocal IGA released on November 4th, 2013, it does introduce certain provisions to the Model 1 agreements signed by European countries (e.g. new sections and provisions in Annex 1 and 2). Read more...

FATCA Agreement Jersey

FATCA Agreement Guernsey

FATCA Agreement Isle of Man

Malta FATCA Intergovernmental Agreement

In addition, on December 16, 2013, Malta and the United States signed an IGA to improve international tax compliance with respect to FATCA. The agreement is based upon the Model 1A Reciprocal IGA. Read more...

FATCA Agreement Malta

Bermuda FATCA Intergovernmental Agreement

Lastly, on December 19, 2013, Bermuda and the United States signed an IGA to improve international tax compliance with respect to FATCA. The agreement is based on the Model 2 IGA. Bermuda is the third country signing the Model 2 version of the IGA following Japan and Switzerland. Few Model 2 IGAs are expected to be signed in the future highlighting the popularity of inter country reporting and reciprocal information for tax residents of partner jurisdictions from the U.S. All of these IGAs include the FATCA deadlines consistent with Notice 2013-43. Read more...

FATCA Agreement Bermuda

01 / 2014

First edition of the Standard for Automatic Exchange of Financial Account Information in Tax Matters

Since being endorsed by the G20 in September 2013 the Organization for Economic Cooperation and Development ("OECD") has been working towards developing a single global standard for automatic exchange of information. Therefore the OECD released the Commentary on the Standard for Automatic Exchange of Financial Account Information in Tax Matters which represents a key milestone in the implementation of a global regime for the automatic exchange of information. Deloitte’s first CRS newsletter provides our insight of the 300+ pages of commentary, which can be found online.

On July 21, 2014, the OECD released the first edition of the Standard for Automatic Exchange of Financial Account Information in Tax Matters. The document contains the Model Competent Authority Agreement (“Model CAA”), the Common Reporting Standard (“CRS”) and Commentaries interpreting each section of the Model CAA and the CRS. It also includes seven Annexes containing the Multilateral Model Competent Authority Agreement, the Nonreciprocal Model Competent Authority Agreement, the Common Reporting Standard User Guide, an Example Questionnaire to assess whether confidentiality and data safeguards requirements are met by a jurisdiction, the Wider Approach to the Common Reporting Standard, the Declaration on Automatic Exchange of Information in Tax Matters adopted on May 6, 2014 and the Recommendation of the Council on the Standard for Automatic Exchange of Financial Account Information in Tax Matters adopted on July 15, 2014. Read more...

01 / 2014

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