Third FATCA Compliance Model Announced - Inter-Governmental Agreements


The U.S. Department of the Treasury (Treasury) issued joint statements with the governments of Japan and Switzerland on June 21, 2012 outlining a new framework for foreign financial institutions (FFIs) in those countries to comply with the Foreign Account Tax Compliance Act (FATCA). This new framework is in addition to that introduced in the February 2012 joint statement released by the United States and five European governments. Other countries seeking to reduce some of FATCA’s burdens or impracticalities now have a choice between the February approach (Model I) and the newly announced approach (Model II).

FATCA does not require foreign governments to enter into either type of agreement described above, and the inter-governmental approach is not open to all countries. However, the Treasury has indicated that it is open to adopting either approach with countries willing to cooperate to achieve FATCA’s goals. The Treasury also has indicated that a country does not need to have an existing income tax treaty with the United States in order to enter into an inter-governmental FATCA agreement.

Please see full alert below for more information.

LOADING PDF: If there are any problems, click here to download the file.

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

© King & Spalding | Attorney Advertising

Written by:


King & Spalding on:

Readers' Choice 2017
Reporters on Deadline

"My best business intelligence, in one easy email…"

Your first step to building a free, personalized, morning email brief covering pertinent authors and topics on JD Supra:

Sign up to create your digest using LinkedIn*

*By using the service, you signify your acceptance of JD Supra's Privacy Policy.

Already signed up? Log in here

*With LinkedIn, you don't need to create a separate login to manage your free JD Supra account, and we can make suggestions based on your needs and interests. We will not post anything on LinkedIn in your name. Or, sign up using your email address.