Some concerns in respect of the implementation of FATCA, which was designed to counter tax evasion by US taxpayers, have been eased with the roll out of Intergovernmental Agreements (IGAs). The IRS also gave some welcome relief by pushing the effective date for FATCA withholding out to July 1, 2014 (or in the case of pass-thru payment withholding, the later of June 30, 2014 and the date that is six months after the date the term “foreign pass-thru payment” is defined in US Treasury regulations) (the “Grandfathering Date”). Beware though any material amendments to loan agreements on or after the Grandfathering Date may affect the grandfathering protection afforded to such loans. This map sets out the current status of IGAs.
Reuters – Intergovernmental Agreement Map
Click here to view map.
IGA agreed: Denmark, Germany, Ireland, Mexico, Norway, Singapore, Spain, Switzerland and United Kingdom.
Conclude IGA negotiations: Canada, France, Finland, Guernsey, Isle of Man, Italy, Japan, Jersey, the Netherlands and New Zealand.
Engaged in dialogue towards IGA conclusion: Argentina, Australia, Belgium, the Cayman Islands, Cyprus, Estonia, Hungary, Israel, Korea, Liechtenstein, Luxembourg, Malaysia, Malta, the Slovak Republic and Sweden.
Exploring IGA options: Bermuda, Brazil, the British Virgin Islands, Chile, the Czech Republic, Gibraltar, India, Lebanon, Romania, Russia, Seychelles, Sint Maarten, Slovenia and South Africa.