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

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 Finally, as expected, the external audit procedures in the previous QI agreement have been replaced by a responsible officer concept which requires periodic compliance certifications and mandatory periodic reviews by an internal compliance program.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 combatting offshore tax evasion. For further information, please see:


June 30, 2014

Corrections to FATCA and 1441 regulations
US Treasury and the IRS released on 30 June 2014 the pre-publication versions of the corrections to the FATCA and 1441 regulations.  The documents are scheduled to be published on 1 July 2014. 

The pre-publication documents are available for download at the links below.

  • FATCA Corrections - Information Reporting by Foreign Financial Institutions and Withholding on Certain Payments to Foreign Financial Institutions
  • 1441 Corrections - Withholding of Tax on Certain U.S. Source Income Paid to Foreign Persons; Information Reporting and Backup Withholding on Payments Made to Certain U.S. Persons, etc.

PwC will revise its formatted version of the regulations to incorporate the corrections.

Revenue Procedure 2014-39 and Final QI Agreement
The IRS released Revenue Procedure (Rev. Proc.) 2014-39 on 24 June 2014 to finalize the Qualified Intermediary (QI) Agreement which provide application procedures and overview of requirements for qualified intermediary status under chapters 3, 4, and 61 and section 3406.

For more information:

  • Rev. Proc. 2014-39 and the final QI agreement can be downloaded by following this link.
  • A PwC Tax Insights article regarding the final QI agreement will be issued later this week.

China, Ukraine and Guyana added to the list of IGAs in substance
China, Ukraine and Guyana have been added to the US Treasury list of IGAs reached  in substance. Both IGAs will be Model 1 agreements. 36 agreements have been signed and released;  agreements in substance have been reached with 50 jurisdictions.


June 25, 2014

IRS updates FFI Agreement
The IRS released Revenue Procedure 2014-38 on 24 June 2014 to update the Foreign Financial Institution (FFI) agreement.  The FFI agreement has been updated to make it consistent with the temporary Chapter 4 regulations and to provide further clarification of certain requirements in the prior FFI agreement.  The revenue procedure also provides guidance to FFIs and branches of FFIs treated as reporting financial institutions under an applicable Model 2 Intergovernmental Agreement (IGA) on complying with the terms of the FFI agreement, as modified by the Model 2 IGA.

Revisions to the FFI agreement include the following:

  • An obligation held by an entity that is issued, opened, or executed on or after July 1, 2014 and before January 1, 2015 may be treated as a preexisting obligation.
  • A PFFI may elect to backup withhold under Section 3406 rather than to withhold under Chapter 4 on  a withholdable payment that is a reportable payment made to certain US non-exempt recipients only if the PFFI complies with the information reporting rules under Chapter 61 with respect to payments made to such account holders
  • The responsibilities of a lead FI are only with respect to members of the FFI group that have designated the PFFI to act as a lead FFI on their behalf.
  • A PFFI that receives a withholdable payment that is allocable to an account holder of the FFI that is a passive NFFE with one or more substantial US owners to certify on a withholding statement provided to the withholding agent that the FFI is reporting the account holder as a US account under the terms of the FFI agreement.
  • A PFFI may allocate a portion of a withholdable payment to a group of documented account holders for whom withholding and reporting is not required under Chapters 3, 4, or 61.

Revenue Procedure 2014-38 can be downloaded by following this link.


June 16, 2014

HM Treasury and HMRC present UK/US regulations to implement FATCA
On 9 June 2014, HM Treasury and HM Revenue and Customs (HMRC) presented the International Tax Compliance (United States of America) Regulations 2014 (UK Regulations) to the House of Commons. The UK Regulations come into force on 30 June 2014 and replace the previous UK International Tax Compliance (United States of America) Regulations 2013 (2013 Regulations) which are revoked. The UK Regulations implement the Agreement between the Government of the United States of America and the Government of the United Kingdom of Great Britain and Northern Ireland to Improve International Tax Compliance and Implement FATCA (the Treaty) into UK law.

For additional information, please see PwC's Tax Insight.

FATCA updates from EEI forum
During the week of 9 June, a US conference was held where several US Treasury and Internal Revenue Service (IRS) officials gave various FATCA updates.  Some of the highlights include:

  • IRS audits of US withholding agents to verify their compliance with FATCA are likely to begin in early 2016.
  • It will likely take until then for the IRS to process, prepare, and deliver to the exam teams the information it receives beginning in 2015.  However, 2014 account holder information reported by foreign financial institutions (FFIs) to the IRS in 2015 is likely to be available for examinations of 2014 income tax returns.  The compliance assurance process for FFIs is also likely to begin in 2016.
  • There are several important factors the IRS may consider in determining whether a taxpayer has made a 'good faith effort' in the context of granting the transition relief described in Notice 2014-33.  These include whether the taxpayer has written compliance policies and procedures, internal controls showing that the procedures have actually been followed, and that roles and responsibilities for compliance and oversight have been adequately allocated to appropriate personnel within the organization.  Such relief would only apply to any potential penalties or the accrual of late payment interest, as the IRS and Treasury have noted  that transition relief does not include relief from withholding tax liability.
  • Requirements for qualified intermediaries (QIs) (including withholding foreign partnerships and trusts (WPs and WTs)), will be described in separate documents based on the Chapter 4 status of a particular entity.  Since QIs, WPs, and WTs, may each have a different Chapter 4 status (e.g., participating FFI, reporting Model 1 FFI, etc.), the IRS felt it would be impractical to have a single document describe all the requirements of a QI / WT / WP due to variations in the requirements based on an entity's Chapter 4 status.  So instead of having one QI agreement, the IRS announced there will be multiple documents where each one is tailored to a specific Chapter 4 status.  The IRS explained that these documents will be 'layered on top' of an entity's Chapter 4 requirements (e.g., layered on top of the FFI agreement in the case of a participating FFI).
  • The technical corrections to the final FATCA regulations and the temporary regulations modifying them are expected to come out 1 July or shortly thereafter.
  • Later this month the IRS is expected to release the instructions to the various forms that are still outstanding, including Form W-8IMY, Form W-8BEN-E, and Form 8966.
  • The IRS is engaging in bilateral discussions with foreign governments to ensure that a 'culture of care' is in place for the electronic exchange of taxpayer information under FATCA and other regimes.

June 5, 2014

UK announces decision not to adopt proposed FATCA delay for on-boarding of new entity accounts
HM Revenue & Customs (HMRC) today announced that the UK has decided not to adopt the proposed delay to the on-boarding of new entity accounts set out in IRS Notice 2014-33. As such, UK Financial Institutions (UK FIs) will still be required to obtain self-certifications from both new entity and individual customers from 1 July 2014. This will apply to both the UK agreement with the US and the UK agreements with the Crown Dependencies and Certain Overseas Territories. 

HMRC also stated that a UK FI, which is not able to obtain the self-certification at the point of opening the account and remediates the account at a later date by obtaining the self-certification, will be compliant with the UK regulations.  This announcement applies to both FIs organized in the UK (but does not include branches located outside of the UK) and the branches located or resident in the UK of a non-UK FI.  While the UK did not adopt the delay in the on-boarding of new Entity accounts, HMRC did confirm that withholding will  apply to UK FIs only if they document themselves as a noncompliant financial institution.

This announcement confirms that all UK FIs (which includes FIs organized in the UK (but does not include branches located outside of the UK) and the branches located or resident in the UK of a non-UK FI), will be required to treat both entity and individual accounts opened after 30 June 2014 as new accounts. While the ability to obtain a self certification after the point of opening the account aligns with processes implemented in accordance with IRS Notice 2014-33, it remains unclear what HMRC will consider to be a reasonable period in which to remediate. 

UK FIs will still need to take care to treat such accounts as new accounts in the application of due diligence procedures and for the timing of reporting as such accounts will be reportable as of the date the account is opened and not the date the account is identified.

Finally, it should also be noted that it remains to be seen how other jurisdictions which have entered into inter-governmental agreements with the US will react to IRS Notice 2014-33.  


June 2, 2014

RS Releases FFI List Search Tool
The IRS on 2 June 2014 released the FATCA Foreign Financial Institution (FFI) List Search and Download Tool.  The site provides a list of Financial Institutions registered, accepted and assigned a Global Intermediary Identification Number (GIIN) in accordance with FATCA regulations. Users can download the entire list of Financial Institutions or search for a particular one by its legal name, GIIN or country.

The FFI list contains 77,353 GIINs. The following are the countries with more than 2,000 GIINs assigned.

Country

GIINs

Cayman Islands

14,837

United Kingdom

6,264

Switzerland

4,041

Luxembourg

3,561

Japan

3,252

Austria

2,979

Germany

2,555

Guernsey

2,406

France

2,291

Canada

2,265

Brazil

2,259

Netherlands

2,054

For more information, please see

FATCA intergovernmental agreements

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.


June 25, 2014

Dominca, Grenada, Taiwan and Thailand added to the list of IGAs in substance
Dominica, Grenada, Taiwan and Thailand have been added to the US Treasury list of IGAs reached  in substance. The Dominica, Grenada and Thailand IGAs will be Model 1 agreements. The Taiwan IGA will be a Model 2 agreement. 36 agreements have been signed and released;  agreements in substance have been reached with 46 jurisdictions.

For more information about the Taiwan IGA, please contact Albert Chou at +886 2 2729-6626.

For more information about the Thailand IGA, please contact Vorapong Sutanont at +66 (2) 344 10001429.

For more information regarding IGAs, please see


June 16, 2014

US Treasury releases updated Model IGAs
The IRS has released the instructions for Form 1042 (Annual Withholding Tax Return for U.S. Source Income of Foreign Persons ) and Form  W-8EXP (Certificate of Foreign Government or Other Foreign Organization for United States Tax Withholding and Reporting).

On 6 June, the US Department of the Treasury (US Treasury) released updated versions of the following Model intergovernmental agreements (IGAs):

In addition, US Treasury also released an updated Model 1 IGA Annex I and Model 2 IGA Annex I.  The most significant change was the inclusion of paragraphs G and H to the Annex 1- Section 6 regarding Special Rules and Definitions which add alternative procedures for new accounts opened.

(1) prior to entry into force of the agreement; and

(2) on or after 1 July 2014 and before 1 January 2015.

Additions to US Treasury IGA lists
There are now 42 signed IGAs and 36 agreements in substance posted on the US Treasury website.

  1. 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.
    • Antigua and Barbuda (2014-06-03)
    • Belarus (2014-06-06)
    • Georgia (2014-06-12)
    • Paraguay (2014-06-06)
    • St. Kitts and Nevis (2014-06-04)
    • St. Lucia (2014-06-12)
    • St. Vincent and the Grenadines (2014-06-02)
    • Seychelles(2014-05-28)
    • Turkey (2014-06-03)
    • Turkmenistan  (2014-06-03)
  2. Text of IGAs with New Zealand, Slovenia and South Africa released
    The texts of the IGAs with New Zealand, Slovenia and South Africa have been released.

    Text of the New Zealand IGA - For more information regarding the New Zealand IGA, please contact Henry Risk at +64 9 355 8869.

    Text of the Slovenia IGA - For more information regarding the Slovenia IGA, please contact Lana Brlek at +385 98 383 017 or Karl Küpper at +49 69 9585 5708. 

    Text of the South Africa IGA - For more information regarding the South Africa IGA, please contact Esmarie Viljoen at +27 (11) 797 4619 or Tapie Marlkie at +27 (21) 529 2242 . 

US Treasury releases updated Model IGAs
On 11 June the IRS issued an updated version of the FATCA XML v1.1 User Guide that taxpayers will use in electronically filing information under FATCA.  The updated User Guide provides some clarifications and other minor edits.  The User Guide describes how to prepare an electronic filing of Form 8966 and explains the information required to be included in each data element of the FATCA XML Schema v 1.0. The updates provide some clarifications and other minor changes to the version that was released in March.


June 2, 2014

Additions to US Treasury IGA lists
There are now 33 signed IGAS and 34 agreements in substance posted on the Treasury web site.

  1. Additions to the list of jurisdictions with IGAs in substance
    US Treasury has added Barbados and the United Arab Emirates to the list of jurisdictions that have reached Intergovernmental Agreements (IGAs) in substance and have consented to being included on the list.
  2. Text of Liechtenstein IGA released
    The text of the Model 1 IGA with Liechtenstein has been released.
  3. For more information regarding IGAs, please see

May 20, 2014

Text of IGAs with Australia, Austria, Gibraltar and Jamaica released
US Treasury has released the text of the IGAs with Australia, Austria, Gibraltar and Jamaica. There are currently 32 signed IGAs on the Treasury web site.

  1. Text of the Australia IGA - For more information regarding the Australia IGA, please contact Daniel Lutz at +61 (3) 8603 5479, Jodie Bosler at +61 (2) 8266 1580 or Malcolm Shackell at +61 (2) 8266 2993.
  2. Text of the Austria IGA - For more information regarding the Austrian IGA, please contact  Bettina Ploner at +43 1 501 88 3646, Peter Wait at +43 1 501 88 1747 or Christoph Obermair at +43 1 501 88 3629.
  3. Text of the Gibraltar IGA - For more information regarding the Gibraltar IGA, please contact Edgar Lavarello at +350 200 73520 or Patrick Pilcher at +350 200 66842 Ext 309. 
  4. Text of the Jamaica IGA - For more information regarding the Jamaica IGA, please contact Adrian Tait at +1 876 932 8429 or Eric Crawford at +1 876 932 8323

Additions to the US Treasury 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.  There are currently 34 agreements in substance posted on the Treasury web site.

  • Armenia (2014-05-08)
  • Azerbaijan (2014-05-16)
  • Hong Kong (2014-05-09)
  • Indonesia (2014-05-04)
  • Singapore (2014-05-05)
  • Turks and Caicos Islands (2014-05-12)

State announcements of IGAs in substance
The governments of Hong Kong, Singapore and Belarus have announced FATCA intergovernmental agreements (IGAs) in substance. Links are provided below to each of the announcements. US Treasury has not posted the announcement for Belarus yet.

  1. Hong Kong
  2. Singapore
  3. Belarus

Cayman Islands issue draft guidance notes
The Cayman Islands FATCA Working Group on May 12, 2014 issued the first draft of guidance notes on the compliance requirements of the Cayman intergovernmental agreements implementing FATCA with the United States and the United Kingdom.  After consulting with representatives of the financial services industry through the FATCA Working Group, the Cayman Competent Authority issued the guidance notes to accompany legislation implementing FATCA, the draft of which was published on April 20, 2014, and underlying regulations, the draft of which will be circulated for consultation shortly.

The Cayman Islands IGA can be accessed by following this link. For more information regarding the Cayman draft guidance, please contact Kara Friedenberg at +1  (646) 471-5748  or Colin Hanson at +1 345 914 8652.


May 5, 2014

Additions to the list of jurisdictions with IGAs in substance
US Treasury has added Kuwait, Panama and Peru to the list of jurisdictions that have reached Intergovernmental Agreements (IGAs) in substance and have consented to being included on the list.  There are currently 30 signed IGAS and 30 agreements in substance posted on the Treasury web site

For more information regarding IGAs, please see


May 2, 2014

Austria signs FATCA IGA
On 29 April 2014, Austria and the United States signed a FATCA IGA. The IGA is a Model II agreement, meaning that financial institutions in Austria will report directly to the IRS. 30 IGAs have been signed and released to date. For more information regarding the Austrian IGA, contact  Thomas Strobach at +43 1 501 88 3640, Christoph Obermair at +43 1 501 88 3629 or Peter Wait at +43 1 501 88 1747.

Text of IGAs with Australia and Austria released
US Treasury has released the text of the IGAs with Australia and Austria.

The text of the IGAs can be found on the Treasury FATCA archive page.

Israel added to the list of jurisdictions with IGAs in substance
US Treasury has added Israel to the list of jurisdictions that have reached IGAs in substance and have consented to being included on the list.  There are currently 26 agreements in substance posted on the Treasury web site


April 25, 2014

Belgium signs FATCA IGA
On 23 April 2014, Belgium and the United States signed a FATCA Intergovernmental Agreement (IGA). The IGA is a Model I reciprocal agreement, meaning that financial institutions in each country will report specific information to their own governments, which will then automatically exchange that information annually on a reciprocal basis. 28 IGAs have been signed to date. PwC will publish commentary on the Belgium IGA. The press release from the US Embassy in Brussels can be found on the US Embassy web site

For more information regarding the Belgium IGA, contact Geneviève Colot at +32 2 7104663 or Olivier Hermand at +32 2 7104416.

Text of IGAs with Belgium, Estonia and Mexico released
US Treasury has released the text of the IGAs with Belgium, Estonia and Mexico.  The IGA with Mexico is a revision to the original agreement. For more information regarding the Mexico IGA, contact Mauricio Hurtado at +52(55) 5263 6045 or Karina Pérez Delgadillo at +52 (55) 5263 5734.

The text of the IGAs can be found on the Treasury FATCA archive page.

Additions to the list of jurisdictions with IGAs in substance
US Treasury has added the Bahamas, Bulgaria, Columbia and Cyprus to the list of jurisdictions that have reached Intergovernmental Agreements (IGAs) in substance and have consented to being included on the list.  There are currently 27 agreements in substance posted on the Treasury website.


April 17, 2014

Text of revised Mexico - US IGA released
The Servicio De Administración Tributaria released the text of a revised Mexico - US IGA on 14 April 2014. The text is currently available in Spanish by following this link.

For more information regarding the Mexico IGA, contact Mauricio Hurtado at +52(55) 5263 6045 or Karina Pérez Delgadillo at +52 (55) 5263 5734

Text of the Estonia - US IGA Released
The Ministry of Finance of the Republic of Estonia has released the text of the US - Estonia IGA. The IGA is a Model I reciprocal agreement, meaning that financial institutions in each country will report specific information to their own governments, which will then automatically exchange that information annually on a reciprocal basis.

For more information, please see:

  • The press release from the Ministry of Finance can be accessed by following this link.
  • The text of the Estonia IGA can be accessed by following this link.

India and Slovak Republic added to the list of jurisdictions with IGAs in substance
The US Treasury has added India and the Slovak Republic to the list of jurisdictions that have reached Intergovernmental Agreements (IGAs) in substance and have consented to being included on the list. There are currently 26 signed IGAs and 24 agreements in substance posted on the Treasury web site

For more information, please see:

Recent Swiss IGA Guidance Updates
FINMA, the Swiss Financial Market Supervisory Authority, has posted guidance on complying with FATCA in Switzerland on its website. The guidance reminds financial institutions in Switzerland that if they are required to register, they should do so by 25 April. Furthermore, FINMA states that they should report back to FINMA via email by 30 April with an update on their registration status and classification. The guidance was published prior to the recent delay in the registration timeline granted by the IRS in Announcement 2014-17 and FINMA has not communicated another deadline. Therefore, all Swiss financial institutions should provide a communication to FINMA no later than 30 April with an update regarding their registration status. The FINMA document covering this topic as well as a few others is available in German by following this link.

Additionally, the FATCA Qualification Committee that has been established under the guidance of the Staatssekretariat für internationale Finanzfragen (SIF) has published a new document containing a list of questions received and their approved interpretations of these questions. The information published should be understood to apply to the specific application of the Swiss IGA and not broadly in a Model 2 IGA context. The questions and interpretations (in German) can be accessed on the SIF website by following this link.

For more information regarding the Swiss guidance, please contact Christoph Schaerer at +41 (0)58 792 4282 or Martin Bueeler at +41 (0)58 792 4392.


March 30, 2014

IGA signed with Luxembourg
The US on 28 March 2014 signed a Model 1 Intergovernmental Agreement (IGA) with Luxembourg. The agreement provides for the reciprocal exchange of information between the US and Luxembourg. The announcement by the Luxembourg Finance Ministry can be accessed by following this link. The text of the IGA has not been released. PwC will publish a newsbrief commenting on the Luxembourg - US IGA after the text of the agreement is released.

For additional information, please see:

EU Savings Directive Adopted
On 24 March 2014 the European member states adopted the revised EU Savings Directive. The EU Savings Directive requires EU member states to exchange information automatically as to enable interest payments made in one member state to residents of the other member states to be taxed in accordance with the laws of the state of tax residence. In turn, the member states require paying agents in their country to annually report to their local tax authority the information on interest payments made to residents of the other member states.

The text enlarges the scope of directive 2003/48/EC, reflecting changes to savings products and developments in investor behavior since it came into force in 2005. The scope now covers new types of savings income and products that generate interest or equivalent income. It includes life insurance contracts, as well as a broader coverage of investment funds. Tax authorities, using a "look-through" approach, will be required to take steps to identify who is benefiting from interest payments. The changes mean that insurance companies will have to start reporting under the EU Savings Directive where that is currently not the case.

The member states will have until 1 January 2016 to adopt the national legislation necessary to comply with the directive.

The Commission noted that banks will not face any unnecessary charges because it feels that a single coherent and consistent model for Automatic Exchange of Information  is required. The Commission is therefore awaiting the final draft of the OECD Common Reporting Standard Commentary, so it can change the EU directive on administrative cooperation where necessary to avoid EU rules duplicating the OECD standard.

The original press release and related documents can be found by following this link.

G5 and OECD release timetable for the exchange of information in tax matters
On 19 March 2014, the 44 countries that previously agreed to become early adopters of a global standard for the automatic exchange of information between tax authorities developed by the OECD (the Common Reporting Standard) announced a timetable for the implementation of those standards. The first exchange of information should take place in 2017 and should apply to the following:

  • An expanded adoption process for new account holders will be necessary for opening accounts starting 1 January 2016.
  • The due diligence procedures for identifying high-value preexisting individual accounts should be completed by 31 December 2016, while the due diligence for low-value preexisting individual accounts and for entity accounts should be completed by 31 December 2017.
  • The first exchange of information in relation to new accounts (those opened from January 2016) and preexisting individual high-value accounts should take place by the end of September 2017. Information about preexisting individual low-value accounts and entity accounts should first be exchanged by either the end of September 2017 or September 2018, depending on when financial institutions identify them as reportable accounts.

The Finance Ministers of the G5 countries value the agreed upon time schedule as an important milestone, which should significantly improve the ability to prevent tax evasion. At the same time, the Finance Ministers call on other countries and jurisdictions to commit to join this initiative at the earliest opportunity with the aim of rapidly creating a truly global system of automatic information exchange and leaving no hiding places for tax evasion.

The Finance Ministers noted that the new global standards as well as the agreed upon time schedule should be implemented into EU Law by the end of 2014.

The joint statement by the “early adopters group” can be found at the links below:

IRS frequently asked questions

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


June 25, 2014

Updates to the FATCA FFI List FAQs
The IRS has added and updated questions in the FFI List FAQ.  The questions added or updated are listed below.

XML/CSV Files
Q3. How is the CSV file formatted for the FFI list? (added 20 June 2014)

FFI List Overview
Q1. What is the Foreign Financial Institution (FFI) List? (Added 23 June 2014)
Q2. How do I get to the FFI List? (Added 23 June 2014)
Q3. What training is available for the FFI List Search and Download Tool? (Added 23 June 2014)

FFI List Fields
Q1. What fields will be contained on the FFI list? (Updated 23 June 2014)

FFI List
Q4. Which Financial Institutions (FIs) and branches are included on the FFI list? (Updated 23 June 2014)

Downloading
Q1. What are the available FFI list file formats for download? (Updated 23 June 2014)

Legal Entity Name
Q4. Can the FI Legal Name be changed once it appears on the FFI List?  (Updated 23 June 2014)

Update to the FATCA General FAQs
The IRS has added one question to the General FATCA List FAQ

Qualified Intermediaries/Withholding Foreign Partnerships/Withholding Foreign Trusts
Q7. How will Withholding Foreign Partnerships (WP) and Withholding Foreign Trusts (WT) renew their WP and WT agreements, if the revised WP and WT agreements will not be published before June 30, 2014?


June 2, 2014

Additional question posted to IRS FAQ
The IRS added a new question to the "Registration Update" section of the FATCA General FAQ:

Q4. My FATCA account status is “Registration Under Review.”  What should I do?

A. If your registration has been put into “Registration Under Review” status, please contact e-Help at 1-866-255-0654 and indicate that your registration is in “Registration Under Review” status.  In addition, please provide: (1) the Name of the Financial Institution and FATCA ID, and (2) the name, telephone number, and email address of either the FATCA Responsible Officer (listed on Part 1, Question 10) or a Point of Contact (listed on Part 1, Question 11.b).


May 20, 2014

General FAQ
One question has been added to the IRS FATCA General FAQ.

Registration Update

Q3.   How do Trustees of Trustee-Documented Trusts register?

FFI List FAQ
One question has been added to the IRS FFI List FAQ.

Registration Deadline

Q1. When does an FFI need to have their registration finalized to be included on the first published FFI list (June 2, 2014)?

FATCA Registration System FAQ
Nine questions have been added to the IRS FATCA Registration System FAQ.

General System Question

Q3.   Is there a way to do a bulk upload of registration data?

Registration Status and Account Notifications

Q2.   Where does an FI go to check their message board?

Expanded Affiliated Groups (EAG)

Q3.   Does a member FI type need to wait until the Lead FI has obtained a GIIN before it registers or obtains a GIIN?

 

Q4.   If an EAG decides to designate more than one Lead FI for its group, how are additional leads added to the registration?

Registration Updates

Q3.   How can an FI change the FI Type in question 1 of the Registration?

 

Q8.   How does an FI delete its registration?

Sponsoring Entity

Q1.   How does Sponsoring Entity Type FI add its Sponsored Entities in the Registration?

GIIN Overview

Q3. Where does a Financial Institution locate its GIIN?

 

Q4.   If an FI is in approved status and has been issued a GIIN, will it lose its GIIN if the FI edits its registration?


April 25, 2014

IRS and US Treasury issue corrections to harmonization regulation
The Internal Revenue Service (IRS) and US Treasury released on 22 April 2014  an update to the harmonization regulations relating to the withholding and reporting obligations under Chapters 3, 4 and 61 of the Internal Revenue Code.  The IRS stated that it was fixing errors in the rules. The clarifications state that Treasury Regulations Section 1.6045-1T is added, not amended. The correcting amendments also add paragraphs (m) through (o).

The correction has been published in the Federal Register.

FATCA forms and instructions

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.


June 30, 2014

IRS releases instructions for Form 1042-S
The IRS has published instructions for the form 1042-S (Foreign Person's U.S. Source Income Subject to Withholding).

  • The new instructions can be downloaded by following this link.
  • Additional information from the IRS regarding the Form 1042-S is available at this link.

June 25, 2014

IRS releases instructions for Forms W-8BEN-E, W-8IMY and 8966
The IRS has published instructions for three FATCA forms:

Purpose Form w/ link Title Status
Reporting Annual Withholding Tax Return for U.S. Source Income of Foreign Persons Final
2014-03-04
Reporting Foreign Person’s U.S. Source Income Subject to Withholding Final
2014-03-07
Reporting Annual Summary and Transmittal of Forms 1042-S Final
2014-05-12
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
2014-03-28
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
2014-03-04
Withholding Certificate Certificate of Foreign Government or Other Foreign Organization for United States Tax Withholding Final
2014-04-16
Withholding Certificate Certificate of Foreign Intermediary, Foreign Flow-Through Entity, or Certain U.S. Branches for United States Tax Withholding and Reporting Final
2014-04-29
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

PwC's thought leadership and webcasts

May 20, 2014

Recording of PwC's Common Reporting Standard (CRS) webcast is available
The Organization for Economic Cooperation and Development (OECD) released the Common Reporting Standard (CRS) for automatic exchange of information in tax matters on 13 February 2014. The CRS establishes a new global standard which will require financial institutions to play a central role in providing tax authorities with greater access and insight into account data maintained by financial institutions.  44 countries have agreed to be early adopters of the Standard with a planned effective date of 1 January 2016 for new account opening procedures and the first reporting in 2017.

PwC hosted a global webcast on 8 May to discuss the requirement of CRS and its impact on financial institutions. The recording is now available on the PwC FATCA webcast page; use the password pwc-May2014! when prompted.  For more information about CRS, please contact Karl Küpper at +49 69 9585 5708, Rob Bridson at +44 (0) 20 780 47590 or Dominick Dell'Imperio at +1 646 471 2386.

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