On 12 June 2015, the German Central Tax Office (Bundeszentralamt für Steuern or “BZSt”) released an “Infobrief” (Link – German) on the upcoming FATCA reporting deadline. First, it stated that capabilities for data transmission for reporting purposes as of 12 June 2015. Second, the BZSt referred to the upcoming BMF-Schreiben which is expected to grant a “non-penatly period” for 2015: although reporting deadline remains 31 July 2015, those who can do the reporting until 31 August 2015 will not face a penalty [if indeed the BMF Schreiben will contain this relief]. Third, the BZSt also released new versions of the various chapters of the Communication Handbook (Chapter I – final: Registration, Chapter II – final: Manual/individual reporting, Chapter III – new draft: Mass reporting).
Link to previous FATCA “Infobriefs” – German
The FATCA draft law in Luxembourg (Link – French) is on the agenda to be voted on during the 1 July 2015 session, according to the Luxembourg Parliament website (Link – French). This is an important step in the implementation of FATCA requirements in Luxembourg and anticipated by financial institutions operating there.
On 25 June 2015, the Brazilian Congress has enacted Legislative Decree 146, approving the agreement with the United States concerning enforcement of the Foreign Account Tax Compliance Act (FATCA), which provides a basis for the exchange of account information from financial institutions between the United States and Brazil. The implementation process has not been finalized as the President’s approval is still pending, however the approval from the Congress is highly indicative that this step should eventually occur.
The IRS issued an updated version of frequently asked questions (“FAQs”) on the international data exchange system (IDES) and compliance management model systems used for FATCA data (Link). More precisely, several questions have been updated with two questions regarding third party tax return preparers having been added.
On 29 June 2015, the IRS has published specifications for the printing of red-ink substitutes for the 2015 revisions of some information returns in Revenue Procedure 2015-35 [2015-26 IRB 1142] (Link). It should be noted that this revenue procedure will be published in the next version of IRS Publication 1179.
On 22 June 2015, the Lichtenstein Tax Administration announced that the deadline for the first FATCA reporting for 2014 has been postponed from 30 June 2015 to 31 July 2015 (Link – German). In addition, an updated version of the Q&A has been made available online (Link – German).
In June, the Irish Revenue issued two additional sets of FAQs. The first is a supplement (Link) to the guidance notes issued in October 2014 (Link). The second set of FAQs (Link) highlights information reporting requirements for U.S. citizens under the Ireland-U.S. IGA (Link). Additional information can also be found on the Irish Revenue’s website (Link).
In June, the Irish Revenue uploaded a guide to support users in uploading FATCA returns to Irish Revenue (Link). The 8-page document walks users through the steps of verifying a valid file, logging into ROS (Revenue On-Line Service), uploading, signing and submitting FATCA returns. Additional information can also be found on the Irish Revenue’s website (Link).
A list of non-compliant countries as seen by EU Member States can be found on the Commission’s website (Link). This list will be updated once a year by the Commission in order to reflect recent changes in the Member States’ lists.
On 17 June 2015, the EU Commission issued a Communication on “A Fair and Efficient Corporate Tax in the European Union: 5 Key Areas for Action” (Link) which sets a comprehensive European approach to corporate taxation. The Communication also has an accompanying staff working document (Link). This Communication comes as a follow up to the Commission’s proposal for a package of measures to create more transparency in corporate taxation issued in March (Link). In brief, the five key areas for action aim to address mechanisms widely used to facilitate aggressive tax planning including transfer pricing, patent boxes and debt.