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FATCAThe US Treasury Department and IRS recently released nearly 400 pages of proposed regulations that detail their plans to implement the Foreign Account Tax Compliance Act (FATCA), which becomes effective on 1 January 2013.

The proposed rules are intended to prevent US taxpayers who hold financial assets in non-US financial institutions and other offshore accounts from avoiding their tax payment obligations.

Under FATCA, certain US withholding agents, Foreign Financial Institutions (FFIs), and non-financial foreign entities are required to report information about offshore accounts and investments held by US taxpayers to the IRS annually.

These institutions include banks, insurance and real estate companies, hedge funds, mutual funds, and private equity firms. FFIs must enter into agreements with the IRS. If they fail to enter into such agreements to report US accounts, they will face a 30-percent withholding charge.

FATCA timeline


8 February 2012

The US Treasury Department and IRS recently released proposed regulations that detail their plans to implement the FATCA regime

17 September 2012

The UK Government announced that they were the first country to sign an agreement (model I) with the US to implement FATCA

24 October 2012

The IRS released Announcement 2012-42 delaying certain FATCA requirements

14 November 2012

The Treasury released a second Model Intergovernmental Agreement for Cooperation to Facilitate the Implementation of FATCA

15 November 2012

Denmark is the second country to sign an IGA (model I) with the US

19 November 2012

Mexico and the United States signed an IGA (model I)

18 December 2012

The UK Tax Authority (HMRC) has issued guidance notes and draft regulations implementing the IGA in the UK

21 December 2012

Ireland and the United States signed an IGA (model I)

31 December 2012

Qualified Intermediary and Other Withholding Agreements expiring on this date will be automatically extended until 31 December 2013


  • Pascal Eber
    Partner - Operations Excellence & Infrastructure Operations
  • Pascal Rapallino
    Partner - Private Wealth Services Leader
  • Pascal Noël
    Partner - Tax - International Tax-GFSI
  • Basil Sommerfeld
    Partner - Operations & Human Capital Leader
  • Alain Verberken
    Directeur - Tax - International Tax-GFSI

Focus on

  • ExternalURL
    Operational Tax News
    Our tax issues newsletter for financial sector companies
  • FATCA - Tax information reporting development
    For European insurers, 1 January 2013 is the date when the Solvency II regulatory regime is expected to take effect, as well as a new U.S. tax regime.

More Learn more

  • FFI list available - Latest IGA - 06/06/2014
    The IRS published the first list of “FFIs” registered on the IRS portal as of 23 May 2014 to be compliant with FATCA as either participating FFIs or otherwise registered deemed compliant FFIs.
  • Form 1042 and instructions released by the IRS - 20/05/2014
    On 8 May 2014, the IRS has published the 2014 Form 1042 (Annual Withholding Tax Return for U.S. Source Income of Foreign Persons) and corresponding instructions.
  • Notice 2014-33 / IGA - 08/05/2014
    The notice provides some additional relief under FATCA and chapter 3; including relief for on-boarding entity account holders from 1 July 2014 to 31 December 2014.
  • FATCA - 04/04/2014
    Luxembourg and the United States have signed on 28 March 2014 a Model I FATCA IGA and a MOU to improve international tax compliance between both jurisdictions.



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