On 29 December 2016, the Luxembourg Tax Authorities announced via a newsletter (Link-French)that a revised version of the XSD schema (Link) would be released in response to the revised IRS Schema v2.0. The new version should be used from 7 January. It is expected that the new version of the application (“environnement de production et environnement de pré-validation”) will be available on 23 January 2017. This new environment will only allow for the filing of data in the XSD 2.0 format.
Finally, the Luxembourg Tax Authorities have announced that a new Technical Circular ECHA No.3 will be published shortly.
On 10 January 2017, PwC’s CITT Compare Tool was updated to reflect the excluded account lists released by the European Union (Link). Please take this opportunity to re-run reports for those countries and use the latest information within your projects.
On 30 December 2016, the U.S. Internal Revenue Service (“IRS”) released Revenue Procedure 2017-15 (Link), which sets forth the final 2017 qualified intermediary (QI) agreement (2017 QI Agreement). The QI regime permits certain foreign persons acting as intermediaries to simplify their federal tax withholding and information reporting responsibilities (1) under Chapter 3 and Chapter 4 of the Internal Revenue Code (Code) and (2) as a payor under Chapter 61 and Section 3406 of the Code (i.e., Form 1099 reporting and backup withholding).
On 30 December 2016, the U.S. Internal Revenue Service (“IRS”) released Revenue Procedure 2017-16 (Link), which provides guidance to foreign financial institutions (FFIs) that are treated as participating FFIs (PFFIs) and as reporting financial institutions under an applicable Model 2 intergovernmental agreement (IGA) (Reporting Model 2 FFIs). Rev. Proc. 2017-16 updates the 2014 FFI agreement, which was set forth in Rev. Proc. 2014-38 (Link) and expired on 31 December 2016, to provide guidance on new and renewed FFI agreements.
On 23 December 2016, the Director of Income Tax in the States of Guernsey released Bulletins 2016/8 (Link) and 2016/9 (Link). Bulletin 2016/8 announces the following:
- In January 2017 the Information Gateway Online Register (IGOR) will be revised to reflect the FATCA XML Schema v2.0 (Link) to replace the previous version 1.1. Reporting institutions should use this new version for reports filed with respect to the 2016 calendar year.
- With regard to CRS, financial institutions are encouraged to register for reporting via IGOR (Link).
On 23 December 2016, the Inland Revenue Board of Malaysia (“IRBM” or “Lembaga Hasil Dalam Negeri Malaysia”) published the Income Tax (Automatic Exchange of Financial Account Information) Rules 2016 (Link) into the national gazette. In addition, information regarding CRS can be found on the Inland Revenue Board’s CRS website (Link) which also includes links to the Income Tax (Multilateral Competent Authority Agreement on Automatic Exchange of Financial Account Information) Order 2016 (Link) and the participating jurisdictions list for Malaysia (Link). It is important to note that under the CRS Rules, MYFIs are required to collect financial account information from all non-residents and report to IRBM those information relating to the Reportable Jurisdictions by 30 June annually beginning 2018. The list of Reportable jurisdictions will be published by 15 January 2018 and will be revised accordingly by 15 January in the following years.
In late October 2016, Norway released reporting guidance for FATCA and CRS (Link-Norwegian). As a reminder, reporting for financial institutions reporting on deposits, loans, interest and life insurance is due on 20 January. For “other financial products” reporting is due on 10 February. Nil reporting is currently not required in Norway.
On 13 December 2016, the Internal Revenue Service (“IRS”) released the revised Form W-8BEN Certificate of Foreign Status of Beneficial Owner for United States Tax Withholding and Reporting (Individuals) (Link) without instructions. This form replaces the previous Form W-8BEN which was revised in February 2014 (Link).
On 12 January 2017, the U.S. Internal Revenue Service (“IRS”) announced that the FATCA International Data Exchange Service (IDES) will be unavailable from 13 January at 12:00EST until 15 January 2017 at 23:59EST for maintenance, reopening on Monday, 16 January 2017. Users are reminded that the test session will continue to operate until 30 January 2017 at 17:00EST. The test environment only supports the FATCA XML Schema v2.0 and Notification XML Schema v2.3.
On 10 January 2017, the U.S. Internal Revenue Service (“IRS”) released updated FATCA Report sample files for Direct Reporting Non-Financial Foreign Entities (Link) to use during the testing period. The IRS advises not to submit sample files as test files. Other sample files can be found on the IRS FATCA XML Schemas and Business Rules for Form 8966 website (Link).