Global Information Reporting

The following are recent developments related to FATCA and other US and non-US Information Reporting requirements. For further information, please contact a member of PwC's Global Information Reporting network.


Recent developments

November 10, 2014

51 countries sign multilateral competent authority agreement on automatic exchange of financial account information

The 7th Meeting of the Global Forum on Transparency and Exchange of Information for Tax Purposes concluded on 30 October in Berlin with the signing of a multilateral competent authority agreement for the implementation of the Common Reporting Standard ("CRS"). This marks a major milestone in the global efforts to combat tax evasion. More than 300 delegates from 101 countries, including 39 ministers, participated in the event which concluded with the signing ceremony.

The Agreement consists of 8 sections:

  • Section 1 contains the definitions of the terms used in the Agreement.
  • Section 2 sets out the information to be automatically exchanged.
  • Section 3 sets out the timing and method of the automatic exchange of information.
  • Section 4 outlines how the parties to the Agreement will work together to ensure compliance with the Agreement.
  • Section 5 sets out the provisions to ensure confidentiality and the safeguarding of data.
  • Section 6 sets out the process to consult on ensuring the smooth operation of the Agreement and to amend the Agreement.
  • Section 7 sets out the subsequent notifications required under the Agreement and how the Agreement is then subsequently brought into effect.
  • Section 8 sets out the role of the Secretariat.

In addition to the Agreement, a list of the 51 countries which are signatories to the Agreement was released, including the intended date for the first information exchangehttp://www.oecd.org/tax/exchange-of-tax-information/mcaa-signatories.pdf.

Follow the link below for more information:

For more information about the AEOI Agreement, please contact Karl Küpper at +49 69 9585-5708, Mark Orlic at +49 69 9585-5038, Rob Bridson at +44 (0) 20 7804 7590, Neil Higgins at +44 (0) 20 7212 5162 or Robert Jan Meindersma at  +31 (0)88 792 61 86.

FATCA Registration System and FFI List System

The IRS updated the FATCA Registration System.  Corresponding updates have been made to the FFI List Search and Download Tool.

New and updated features include:

  • Updates to FI Legal Name Fields
  • Printing Registration Form
  • Point of Contact (POC) Information downloadable files
  • PAI Contract information downloadable files
  • Branch Table downloadable files
  • Member Table downloadable files
  • FATCA Registration Login

Follow the links below for more information:

FATCA XML Schema and International Data Exchange

The IRS updated the FATCA XML schema and has published additional information related to the FATCA International Data Exchange System (IDES). 

Follow the links below for more information:

FATCA FAQs

The IRS updated the FATCA FAQs, revising answers to many prior questions and adding new questions.  The following are the questions that have been updated or added in the last month.

A. FATCA General FAQ

Branch / disregarded entity

Q4 How can a withholding agent find the name and GIIN of a branch on the FFI list? (new question)

To read the answers to this question, view the IRS General FATCA FAQ.

B. FATCA Registration FAQ

General system

Q5 Will there be an automatic check of legal names against a database to prevent misspellings or to provide consistent formatting?

Q6 What is the maximum number of characters allowed for name fields?

Q7 How should an FI enter the FI legal name in question 2 or the member FI legal name in question 12 (for lead FIs) if the FI legal name is longer than what the system allows, or has characters that the system does not allow?

Q9 Does the system have the capability to show the questions and responses before the registration is submitted?

Q11 Can the FI registration information be downloaded? (new question)

Registration updates

Q6 How do I edit my registration information after I submit the registration form?

To read the answers to these questions, view the IRS FATCA Registration System FAQ.

C. FFI List FAQ

FFI List Fields

Q2 What are the maximum lengths of each field?

Searching

Q3 Why are there two different GIINs associated with a Financial Institution (same FI name and same country)? (new question)

Q4 Why is there more than one Branch with the same GIIN?  (new question)

To read the answers to this question, view the IRS FFI List FAQ.

D. International Data Exchange Services (IDES) FAQ

General Questions

Q1 What is the International Data Exchange Services (IDES) system?

Q3 What is the frequency of IRS request for information on recalcitrant accounts?

Q7 What types of technical support will be present during integration testing? How will the HCTAs and FFIs report issues with integration testing back to the IRS? (new question)

Q8 What is the protocol for HCTAs to contact the IRS with technical issues or questions regarding IDES? (new question)

Q9 What is the protocol for HCTAs to contact the IRS with issues or questions regarding reporting requirements? (new question)

Q10 When can I enroll to use IDES? (new question)

System Availability and Design

Q3 Is the IDES system IPv6 compatible?

Data Format and Structure

Q4 What is the format for sending metadata for file transfers to IDES (e.g., indicate a specific sender / receiver)?

Q5 Is the XML data based on UTF-8 character encoding?  Are there any restrictions on the range of characters that can be used?

Q6 Is there a "not to exceed limit" on the size of the transmitted data file?  Is there a method to associate and/or merge files if transmission split due to size restrictions?

Q7 Within the XML schema, is the SendingCompanyIN data element used to determine the origin of the file?

Q10 How will the IRS handle updates to the XML schema? Will the system still be able to accept older versions of the schema or will prior years' files need to be updated to the current schema version? (new question)

Data Transmission

Q1 What are the procedures for sending files to IDES and/or ICMM systems?

Q2 What are the procedures for sending metadata for files to IDES?

Q5 How will reciprocal data from the IRS be sent to an HCTA and in what format (new question)

Q6 How will the HCTA notify IDES of outages of their systems that will be receiving data? (new question)

Q7 What is the procedure for sending corrected and/or amended data to receiving HCTA? Will the resubmission need to include only the corrected / amended entries or will the entire report need to be resubmitted? (new question)

Data Encryption and Security

Q1 What type of data encryption should be used prior to XML data transmission?

Q2 What encryption standard will be implemented on the transmission path?

Q3 How will passwords and keys be controlled for data transmission?

To read the answers to this question, view the IRS IDES Technical FAQ.


September 29, 2014

IRS releases new draft instructions for 2015 Forms 1099-MISC, 1099-INT, 1099-OID and 1099-DIV

The IRS released on 24 September draft instructions for the draft 2015 Forms 1099-MISC, 1099-INT, 1099-OID and 1099-DIV. New check boxes have been added to each of the forms to allow FFIs and US payors to satisfy their FATCA (Chapter 4) reporting requirements.

A chart of current FATCA-related forms and instructions appears at the bottom of this note.

IRS releases update to revised QI agreement

On 23 September, the IRS released an announcement regarding the revised qualified intermediary (QI) agreement that was released on 27 June 2014.  The announcement applies to certain entities that enter into or have entered into the revised QI agreement published in Revenue Procedure 2014-39.

The announcement addresses four main topics:

  • Form 1099 reporting responsibility
  • Private arrangement intermediaries and joint account and agency options under the revised QI agreement
  • New QIs for calendar year 2014
  • QI application and renewal procedures for certain central banks of issue

For more information regarding the QI agreement:


July 7, 2014

IRS releases updated QI agreement providing guidance for QIs under FATCA and Chapter 3
On June 27 2014, the Internal Revenue Service released Revenue Procedure 2014-39 which provides guidance on the reporting, withholding, account documentation and registration requirements for a non-US intermediary entering into or renewing a qualified intermediary (QI) agreement.

The issuance of a new QI agreement has been anticipated, and the majority of the changes from the existing QI agreement reflect the documentation, reporting and withholding requirements set forth under the provisions of FATCA. The new QI agreement coordinates account documentation, withholding, and reporting requirements with those under FATCA. Finally, as expected, the external audit procedures in the previous QI agreement have been replaced by a responsible officer concept which requires periodic compliance certifications and mandatory periodic reviews by an internal compliance program.

For more information regarding the QI agreement, contact Candace Ewell at +1 202 312 7694, Dominick Dell'Imperio at +1 646 471 2386,  Karl Küpper at +49 69 9585-5708 or Rob Bridson at +44 (0) 20 7804 7590.

IRS updates addendum to the FFI Registration guide
The IRS released an updated addendum to the FFI registration guide. Appendix E (Country Lookup Table) was modified to add two jurisdictions: Wallis and Futuna; and West Bank and Gaza.

For more information regarding FFI registration.

July FFI List
The IRS released on 1 July the FATCA Foreign Financial Institution (FFI) list of financial institutions with an approved status as of 24 June 24 2014.  The July list contains 87,993 GIINs. 512 GIINs that were on the June list have been removed and 11,180 were added. The table below highlights the ten jurisdictions with the most GIINs in the July list.

Country GIINs Net Increase
Cayman Islands 17,207 2,370
United Kingdom 6,994 730
Switzerland 4,279 238
Luxembourg 4,061 500
Japan 3,390 138
Austria 3,010 31
Germany 2,894 339
Guernsey 2,585 179
Canada 2,566 301
France 2,422 131
All others 38,585 5,683
Total 87,993 10,640

For more information, please see

US Treasury statement regarding FATCA
US Treasury issued a press release on 1 July calling the implementation of FATCA an important step toward reducing the tax gap and combating offshore tax evasion. For further information, please see:


FATCA intergovernmental agreements

November 10, 2014

Notification of More Favorable IGA Terms

The IRS released an update to the IGA Notification of More Favorable Terms. Article 7 of the Model 1 IGA provides that the United States shall notify its partner jurisdictions of any more favorable terms under Article 4 or Annex I of the IGA afforded to another partner jurisdiction. On 27 September, US Treasury sent the first Notice of More Favorable Terms, referencing the Mexico IGA, to 17 countries. On 5 November, US Treasury sent the second Notice of More Favorable Terms, referencing the British Virgin Islands IGA, to 37 countries.

Follow the links below for more information:

Text of Bahamas and Poland IGAs released

The text of the Bahamas and Poland IGA has been released.  There are now 45 signed IGAs and 56 agreements in substance posted on the Treasury web site.

Follow the links below for more information:


September 29, 2014

Brazil and the United States sign FATCA intergovernmental agreement (IGA)

On 23 September, Brazil’s Finance Minister Guido Mantega and US Ambassador to Brazil Liliana Ayalde signed an agreement between Brazil and the United States to exchange tax information.

Brazil and the United States already have an agreement to exchange tax information, the tax information exchange agreement, signed in March 2007 and promulgated by presidential decree in 2013. This new agreement was required to meet the requirements set by FATCA which aims to identify financial activities of US taxpayers abroad.

This agreement will allow information on US taxpayers in Brazil to be referred by financial institutions to Brazil’s Receita Federal and subsequently transferred to the Internal Revenue Service in the United States. In turn, Receita Federal will receive information about Brazilian taxpayers’ holdings in US financial institutions. This exchange of information will be done respecting the confidentiality of information by both parties.

For more information regarding the Brazil IGA:

For more information regarding other IGAs:

Singapore releases proposed regulations for compliance with FATCA, Model 1 IGA

On 22 September, the Ministry of Finance, Monetary Authority of Singapore, and the Inland Revenue Authority of Singapore released draft regulations to help financial institutions in Singapore comply with FATCA. Singapore has substantially concluded a Model 1 IGA with the US and anticipates that the agreement will be signed in the fourth quarter of 2014.

The draft regulations set out the due diligence and reporting obligations of Singapore-based financial institutions in relation to the FATCA IGA. The draft regulations will be accompanied by a supporting  draft e-Tax Guide (guidance note), which provides further explanation of those obligations.

For more information regarding the proposed regulations:


July 7, 2014

Additions to the FATCA Intergovernmental Agreement (IGA) lists
US Treasury added 15 jurisdictions to the list of agreements in substance and released the final text of three IGAs. There are now 39 signed IGAs and 62 agreements in substance posted on the US Treasury website.

A. Additions to the list of jurisdictions with IGAs in substance

US Treasury has added the following to the list of jurisdictions that have reached IGAs in substance and have consented to being included on the list. 

  • Algeria (6-30-2014)
  • Anguilla
  • Bahrain (6-30-2014)
  • Cabo Verde (6-30-2014)
  • Dominican Republic (6-30-2014)
  • Greenland (6-29-2014)
  • Haiti (6-30-2014)
  • Iraq (6-30-2014)
  • Malaysia (6-30-2014)
  • Moldova (6-30-2014)
  • Montenegro (6-30-2014)
  • Nicaragua (6-30-2014)
  • San Marino (6-30-2014)
  • Serbia (6-30-2014)
  • Uzbekistan (6-30-2014)

B. Text of IGAs with Israel, Latvia and the British Virgin Islands released

The texts of the IGAs with Israel, Latvia and the British Virgin Islands have been released.

IRS frequently asked questions

September 29, 2014

IRS warns financial institutions of scams designed to steal FATCA-related account data

The IRS issued a fraud alert on 23 September for international financial institutions complying with FATCA. The IRS stated that scam artists posing as the IRS have fraudulently solicited financial institutions seeking account holder identity and financial account information.

For more information, view the IRS announcement.

IRS provides guidance for withholding foreign partnerships and withholding foreign trusts

The IRS released in Revenue Procedure 2014-47 application procedures and overview of requirements for withholding foreign partnership (WP) or withholding foreign trust (WT) status under Chapters 3 and 4, final WP agreement and final WT agreement.

The revenue procedure provides:

  • Guidance for entering into a WP agreement and a WT agreement with the IRS
  • Background on the withholding and reporting requirements of Chapters 3 and 4 of the Internal Revenue Code and highlights changes to the prior versions of the WP agreement and WT agreement
  • The application procedures for becoming a WP or WT and for renewing a WP agreement or WT agreement
  • The revised WP agreement
  • The revised WT agreement

For more information, download Revenue Procedure 2014-47.

IRS adds new questions to the FATCA General FAQ

The IRS updated the FATCA General FAQ with two new questions:

  • IGA Registration section, Question 7
    Does an entity in a Model 1 jurisdiction that, relying on the definition of a nonreporting financial institution under the applicable IGA,  qualifies as a deemed-compliant FFI or an exempt beneficial owner under relevant U.S. Treasury Regulations, need to register on the FATCA registration website?

  • General Compliance section, Question 8
    Annex I of the IGA provides that, for certain purposes, a self-certification may be made on an IRS Form W-8 or other "similar agreed form."  What would be considered a similar agreed form?

To read the answers to these questions, view the IRS General FATCA FAQ.

IRS releases new FAQ for  International Data Exchange Services (IDES)

The IRS released on 17 September a new FAQ related to the International Data Exchange Services (IDES) system.  The IDES is a managed service that allows financial institutions and host country tax authorities to automatically exchange FATCA data with the United States. IDES will also enable the United States to make reciprocal exchanges as described in any IGA.

The FAQ addresses questions in five areas:

  • General questions
  • System availability and design
  • Data format and structure
  • Data transmission
  • Data encryption and security

For more information:


July 15, 2014

IRS Updates General FATCA FAQ

The IRS has added several new questions to the general FATCA FAQ. The questions that have been added or updated are listed below. To view the complete IRS General FAQ including the answers, please follow this link.

To learn more about FATCA, please visit PwC's FATCA web site. To discuss FATCA or other information reporting issues, please contact a member of PwC's Global Information Reporting network.

IGA Registration
Q6. Does an FFI in a Model 1 IGA jurisdiction need to register before July 1, 2014, if the FFI is part of an EAG?
Date Posted: 7/10/2014

Expanded Affiliated Groups
Q2. What is required for an entity to be a Lead FI?
Date Posted: 7/10/2014

NFFEs
Q1. How should an entity seeking the FATCA status of “direct reporting NFFE” (other than a sponsored direct reporting NFFE) register for this status to obtain a GIIN in order to avoid FATCA withholding?
Date Updated: 7/10/2014
Q3. Can a direct reporting NFFE be registered as a Member FI?
Date Posted: 7/10/2014
Q4. Does a direct reporting NFFE have to separately register its branches when it completes its FATCA registration?
Date Posted: 7/10/2014

Registration Update
Q5. Does an FFI registering to become a PFFI (including a reporting Model 2 FFI) need to complete a paper version of the FFI Agreement?
Date Posted: 7/10/2014
Q6. What action should a FATCA registrant take if it improperly completes multiple FATCA registrations?
Date Posted: 7/10/2014

FFI/EAG Changes
Q1. We are the common parent of an EAG. If we sell our interest in a wholly-owned FFI that is registered as a Member FI, what impact will the sale have on the Member FI’s FATCA registration?
Date Posted: 7/10/2014
Q2. Can a FATCA registrant change its FI Type—which is selected at the beginning of the FATCA registration process—without re-registering?
Date Posted: 7/10/2014
Q3. If a registrant has changed its name but not its FI Type, does it need to re-register?
Date Posted: 7/10/2014
Q4. How can an FFI that is registered as a Single FI change its FATCA registration to become a Lead FI?
Date Posted: 7/10/2014
Q5. How can an FFI that is registered as a Lead FI of an EAG change its FATCA registration to become a Single FI?
Date Posted: 7/10/2014
Q6. What steps does a registrant need to complete if it has dissolved?
Date Posted: 7/10/2014

General Compliance
Q3. What are the consequences of terminating the FFI agreement for a Participating Foreign Financial Institution?
Date Updated: 7/10/2014

FATCA forms and instructions

November 10, 2014

Instructions for Forms W-8BEN, W-8BEN-E, W-8ECI, W-8EXP and W-8IMY

A. Supplement to the instructions for users of Form W-8BEN-E

The following sections of the instructions are affected by the supplemental instruction:

  • Definition of "substantial US owner" (page 6)
  • Chapter 3 status (page 7)
  • Examples of when an entity should complete Line 15 (page 10)

Follow the link below for more information:

B. Supplement to the instructions for requesters of Forms W-8BEN, W-8BEN-E, W-8ECI, W-8EXP or W-8IMY

The following sections of the instructions are affected by the supplemental instruction:

  • Whether requesters who receive Form W-9 must generally report on Form 1099 (page 3)
  • Correction from "foreign reverse hybrid entity" to "foreign hybrid entity" (page 5)
  • Form W-8BEN-E requested by an FFI solely for purposes of documenting the chapter 4 status (page 7)
  • Form W-8IMY provided by a qualified securities lender (QSL) (page 9)
  • Reliance on a written certification provided by a QSL pursuant to Notice 2010-46 when the QSL’s chapter 4 status is not required (page 10)
  • Use of non-IRS forms for individuals (page 14)

Follow the links below for more information:

A chart of current FATCA-related forms and instructions appears at the bottom of this note.

Instructions for 2014 Form 1042-S

The IRS released a cover sheet updating the instructions for FATCA reporting on Form 1042-S.  All filers should refer to the supplemental instruction in addition to the published instruction before filing Form 1042-S.

The following sections of the instructions are affected by the supplemental instruction:

  • Special Transitional Rule (page 1)
  • Definition of authorized agent (page 3)
  • Amounts Subject to Reporting on Form 1042-S (page 6)
  • Payments allocated, or presumed made, to U.S. non-exempt recipients (page 11)
  • Box 3, Chapter 3 status and Box 4, Chapter 4 status (page 19)
  • Chapter 4 Exemption Codes (page 19)
  • Escrow Procedure (page 20)
  • Box 13i, Recipient’s Chapter 4 Status Code (page 21)
  • Boxes 14e and 14f, Primary Withholding Agent (page 23)

Follow the links below for more information:

A chart of current FATCA-related forms and instructions appears at the bottom of this note.

Instructions and Forms 1099 for filing years 2014 and 2015

The IRS released updated final versions of the various Forms 1099 and their associated instructions for filing years 2014 and 2015.  New check boxes have been added to identify FFIs that are filing to satisfy their chapter 4 reporting requirements.

The IRS also issued a supplement to the 2014 general instructions for certain information return reporting on Form 1099.  Certain foreign financial institutions (FFIs) that are required to report an account that is a US account under FATCA may be eligible to elect to report the account on Form(s) 1099 instead of on Form 8966. 

Follow the links below for more information:

Purpose Form w/ link Title Status
Reporting Annual Withholding Tax Return for U.S. Source Income of Foreign Persons Final
2014-03-21
Reporting Foreign Person’s U.S. Source Income Subject to Withholding Final
2014-04-02
Reporting Annual Summary and Transmittal of Forms 1042-S Final
2014-05-12
Reporting Dividends and Distributions Final
2014-10-22
Reporting Interest Income Final
2014-10-22
Reporting Miscellaneous Income Final
2014-10-22
Reporting Original Issue Discount Final
2014-10-22
Reporting Dividends and Distributions Final
2014-10-21
Reporting Interest Income Final
2014-10-21
Reporting Miscellaneous Income Final
2014-10-21
Reporting Original Issue Discount Final
2014-10-21
Reporting Foreign Account Tax Compliance Act (FATCA) Report Final
2014-03-05
Registration Foreign Account Tax Compliance Act (FATCA) Registration Final
2013-08-18
Documentary Evidence Certificate of Foreign Status of Beneficial Owner for United States Tax Withholding and Reporting (Individuals) Final
2014-03-03
Withholding Certificate Certificate of Status of Beneficial Owner for United States Tax Withholding and Reporting (Entities) Final
2014-07-03
Withholding Certificate Certificate of Foreign Person’s Claim That Income Is Effectively Connected With the Conduct of a Trade or Business in the United States Final
2014-07-03
Withholding Certificate Certificate of Foreign Government or Other Foreign Organization for United States Tax Withholding Final
2014-07-03
Withholding Certificate Certificate of Foreign Intermediary, Foreign Flow-Through Entity, or Certain U.S. Branches for United States Tax Withholding and Reporting Final
2014-07-03
Withholding Certificate Request for Taxpayer Identification Number and Certification Final
2014-01-24
Withholding Certificate Solicitud y Certificacion del Numero de Identificacion del Contribuyente Final
2013-09-30

July 7, 2014

IRS clarifies use of Forms W-8BEN-E, W-8ECI, W-8EXP and W-8IMY before 1 January 2015
The IRS released updates to Forms W-8BEN, W-8ECI, W-8EXP and W-8IMY on 3 July adding statements clarifying the use of prior versions of forms before 1 January 2015. The white paper instructions to the PDF versions of the Forms W-8 now note:

  • Entities may use the immediately prior ("pre-FATCA") versions (February 2006) of the Forms W-8BEN, W-8ECI, W-8EXP and W-8IMY through 31 December 2014.
  • For purposes of Chapter 3 of the Internal Revenue Code, the pre-FATCA versions of the Forms W-8BEN, W-8ECI, W-8EXP and W-8IMY provided to a withholding agent by an entity before 1 January 2015 will remain valid until the form’s validity expires under the applicable Treasury Regulations section.
  • For purposes of Chapter 4 of the Internal Revenue Code, the pre-FATCA versions of the Forms W-8BEN, W-8ECI, W-8EXP and W-8IMY are and will remain valid to the extent permitted in Treasury Regulations section 1.1471-3(d)(1) (describing the allowance for use of a “pre-FATCA Form W-8”).
  • A withholding agent may request that a payee provide the pre-FATCA versions of the Forms W-8BEN, W-8ECI, W-8EXP or W-8IMY.
  • The Form W-8BEN-E reflects changes made by FATCA; the February 2006 Form W-8BEN does not reflect changes made by FATCA.

Note: Although a pre-FATCA version of a Form W-8 can still be accepted, a withholding agent must document the FATCA status and GIIN of an account owned by a prima facie FFI by December 31, 2014.

To view PwC Global Information Reporting contacts worldwide, follow this link.