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

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 Finally, as expected, the external audit procedures in the previous QI agreement have been replaced by a responsible officer concept which requires periodic compliance certifications and mandatory periodic reviews by an internal compliance program.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

FATCA intergovernmental agreements

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

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

September 29, 2014

Purpose Form w/ link Title Status
Reporting Annual Withholding Tax Return for U.S. Source Income of Foreign Persons Final
Reporting Foreign Person’s U.S. Source Income Subject to Withholding Final
Reporting Annual Summary and Transmittal of Forms 1042-S Final
Reporting Dividends and Distributions Draft
Reporting Interest Income Draft
Reporting Miscellaneous Income Draft
Reporting Original Issue Discount Draft
Reporting Foreign Account Tax Compliance Act (FATCA) Report Final
Registration Foreign Account Tax Compliance Act (FATCA) Registration Final
Documentary Evidence Certificate of Foreign Status of Beneficial Owner for United States Tax Withholding and Reporting (Individuals) Final
Withholding Certificate Certificate of Status of Beneficial Owner for United States Tax Withholding and Reporting (Entities) Final
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
Withholding Certificate Certificate of Foreign Government or Other Foreign Organization for United States Tax Withholding Final
Withholding Certificate Certificate of Foreign Intermediary, Foreign Flow-Through Entity, or Certain U.S. Branches for United States Tax Withholding and Reporting Final
Withholding Certificate Request for Taxpayer Identification Number and Certification Final
Withholding Certificate Solicitud y Certificacion del Numero de Identificacion del Contribuyente Final

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.

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