December 21, 2012: Ireland FATCA Intergovernmental Agreement
Foreign Account Tax Compliance Act (FATCA)
Ireland and the United States sign Intergovernmental Agreement
On December 21, 2012, Ireland and the United States signed an Intergovernmental Agreement (“IGA”) to improve international tax compliance with respect to FATCA. The agreement is substantially similar to the United Kingdom agreement including reciprocal reporting obligations for the United States. However, unlike the U.K. IGA and similar to the Mexican IGA, the U.S. is committing to creating rules to require the collection and reporting of the Irish taxpayer identification number (“TIN”) for Ireland residents (along with other information) as opposed to the date of birth for U.K. residents.
Annex II of the Agreement identifies the Irish Government, the Central Bank of Ireland, certain International Organizations in Ireland, and certain Irish pension funds as exempt beneficial owners. The category of Deemed-Compliant entities under Annex II includes certain Non-Profit Organizations, certain Financial Institutions with an Irish Client Base, and certain Collective investment Vehicles regulated under the laws of Ireland. Lastly, Annex II declares certain retirement accounts or products and certain tax-favored accounts or products as exempt products.
Ireland is the fourth country to sign an IGA with the U.S. after the U.K signed in September and Denmark and Mexico signed in November, and further bolsters the U.S.’s position to solve the global FATCA compliance problem using the IGA methodology. Ireland was also included in a recent list published by the U.S. Treasury to be one of the countries it was actively negotiating with to conclude an IGA by year-end. According to the same announcement, the U.S. expects to conclude an additional fourteen IGAs by the end of 2012.