Monday, December 1, 2014

FATCA Update! - 101 FATCA Agreement To Date!

The IRS released Announcement 2014-38  which provides guidance with respect to jurisdictions that are treated as if they had a FATCA intergovernmental agreement (IGA) in effect pursuant to Announcement 2014-17, 2014-18 I.R.B. 1001, but that do not sign the IGA before December 31, 2014.

Announcement 2014-38 provides that a jurisdiction that is treated as if it had an IGA in effect, but that has not yet signed an IGA, retains such status beyond December 31, 2014, provided that the jurisdiction demonstrates firm resolve to sign the IGA as soon as possible.

After December 31, 2014, Treasury will review the list of jurisdictions having an agreement in substance on a monthly basis to assess whether it continues to be appropriate to treat such a jurisdiction as if it had an IGA in effect or whether a jurisdiction should be removed from the list.

Announcement 2014-38 will be published in Internal Revenue Bulletin 2014-51 on Dec. 15, 2014.

Since our last FATCA Update! posted on Friday, September 26, 2014 the following 5 countries have signed FATCA agreements with the US  with the total remaining 101 jurisdictions with FATCA agreement:
  1. Barbados, U.S. Sign Model 1 FATCA Intergovernmental Agreement. Barbados and the U.S. have signed a Model 1 intergovernmental agreement to facilitate compliance with the Foreign Account Tax Compliance Act, the Barbados government announced.
  2. Hong Kong, U.S. Sign FATCA Agreement; Reporting Starts in March Hong Kong and the U.S. signed an intergovernmental agreement (IGA) November 13, 2014 to facilitate compliance with the Foreign Account Tax Compliance Act, the Hong Kong government said in a news release.
  3. Bahamas signs FATCA agreement. On November 3, the Bahamian government signed a Model 1 Intergovernmental Agreement and will begin reporting to the US under the Foreign Account Tax Compliance Act (FATCA) by September 2015. This IGA replaces the previous agreement in effect as of April 17, 2014 which was due to expire on December 31, 2014.
  4. Brazil signs U.S. Sign Model 1 FATCA agreement with the US. Brazil is the latest Latin American country so sign an Intergovernmental Agreement with the US to implement the Foreign Account Tax Compliance Act (FATCA). Starting next year, Brazil and the US will automatically exchange account holder information on a reciprocal and yearly basis. Information will be exchanged nine months after the end of the calendar year to which the information related (and therefore information for 2014 is required to be exchanged).
  5. Poland - FATCA intergovernmental agreement signed with the US. on
    October 10, 2014 the U.S. Treasury Department posted text of an intergovernmental agreement (IGA) between Poland and the United States, to implement the FATCA regime which
    follows the Model 1 IGA.           
According to PwC's post on October 19, 2014 Nearly 105,000 financial institutions are listed on the US Internal Revenue Service (IRS) database of Foreign Account Tax Compliance Act (FATCA) organisations complying with the tax reporting rules for US citizens. That’s an increase of 4,567 financial institutions and six new financial jurisdictions since the last list was published on September 1, 2014.

Financial institutions on the database will file annual reports of accounts and investments held by US taxpayers to the IRS. The thresholds are balances of $50,000 for US residents and $200,000 for expats.

Do You Have Unreported Foreign Income?

Is Your Foreign Account in
Any of the Countries Mentioned Below?

Contact the Tax Lawyers at 
Marini & Associates, P.A.  
for a FREE Tax Consultation
Toll Free at 888-8TaxAid ((888) 882-9243)
See Below For Types of FATCA Agreements Signed

By Each Country and Links to the Actual Agreements.

The following jurisdictions are treated as having an intergovernmental agreement in effect (scroll down for a list of jurisdictions with agreements in substance):
As of December 1, 2014 the US Department of the Treasury list the following countries as having signed an agreement or treated as having reached an agreement in substance:

Jurisdictions that have signed agreements:

Model 1 IGA

Jurisdictions that have reached agreements in substance and have consented to being included on this list (beginning on the date indicated in parenthesis):

Model 1 IGA

  • Algeria (6-30-2014)
  • Anguilla (6-30-2014)
  • Antigua and Barbuda (6-3-2014)
  • Azerbaijan (5-16-2014)
  • Bahrain (6-30-2014)
  • Belarus (6-6-2014)
  • Bulgaria (4-23-2014)
  • Cabo Verde (6-30-2014)
  • China (6-26-2014)
  • Colombia (4-23-2014)
  • Croatia (4-2-2014)
  • Curaçao (4-30-2014)
  • Cyprus (4-22-2014)
  • Dominica (6-19-2014)
  • Dominican Republic (6-30-2014)
  • Georgia (6-12-201)
  • Greenland (6-29-2014)
  • Grenada (6-16-2014)
  • Guyana (6-24-2014)
  • Haiti (6-30-2014)
  • India (4-11-2014)
  • Indonesia (5-4-2014)
  • Kosovo (4-2-2014)
  • Kuwait (5-1-2014)
  • Malaysia (6-30-2014)
  • Montenegro (6-30-2014)
  • Panama (5-1-2014)
  • Peru (5-1-2014)
  • Portugal (4-2-2014)
  • Qatar (4-2-2014)
  • Romania (4-2-2014)
  • St. Kitts and Nevis (6-4-2014)
  • St. Lucia (6-12-2014)
  • St. Vincent and the Grenadines (6-2-2014)
  • Saudi Arabia (6-24-2014)
  • Serbia (6-30-2014)
  • Seychelles (5-28-2014)
  • Singapore (5-5-2014)
  • Slovak Republic (4-11-2014)
  • South Korea (4-2-2014)
  • Thailand (6-24-2014)
  • Turkey (6-3-2014)
  • Turkmenistan (6-3-2014)
  • Turks and Caicos Islands (5-12-2014)
  • Ukraine (6-26-2014)
  • United Arab Emirates (5-21-2014)
  • Uzbekistan (6-30-2014)

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