On 2 May, the IRS released an advance copy of Notice 2014-33 announcing that calendar years 2014 and 2015 will be regarded as a transition period for purposes of:
Notice 2014-33 (PDF, 68 KB) explains that the transition period is being provided and the future regulations will be issued to facilitate an orderly transition for withholding agents and FFIs to comply the FATCA requirements, and responds to comments regarding certain aspects of the regulations under chapters 3 and 4.
Notice 2014-33 also announces that the Treasury Department and IRS intend to amend the regulations under sections 1441, 1442, 1471, and 1472 so as to provide:
Before these changes are made to the regulations, taxpayers may rely on the provisions of Notice 2014-33 regarding these proposed amendments to the regulations.
On 2 May, the IRS posted a final version of the instructions for Form W-8EXP which is to be used by foreign governments and foreign entities to claim a reduced rate of (or exemption from) withholding tax.
The instructions (PDF, 192 KB) for Form W-8EXP, Certificate of Foreign Government or Other Foreign Organization for United States Withholding and Reporting (Rev. April 2014), explain that Form W-8EXP - along with Forms W-8BEN, W-8ECI, and W-8IMY - have been updated to reflect the documentation requirements under Chapter 4 (i.e., the FATCA provisions).
The final version of Form W-8EXP was released in mid-April 2014. Read TaxNewsFlash-United States
On 2 May, the U.S. Treasury Department updated its FATCA webpage to report that Curaçao has “in substance” reached an intergovernmental agreement (IGA) with the United States as of 30 April 2014.
According to a recent posting on Treasury's FATCA webpage, the IGA with Curaçao follows the Model 1 IGA under FATCA.
There is no information as to when the IGA with Curaçao would be signed.
On 28 April, representatives of the governments of the United States and Australia in Canberra signed an intergovernmental agreement (IGA) to implement U.S. legislation known as FATCA.
The FATCA agreement has been posted by the Australian Treasury.
According to the U.S. Treasury webpage on FATCA, the IGA with Australia follows the Model 1 IGA.
For further information, please do not hesitate to contact us.
Any tax advice in this communication is not intended or written by KPMG to be used, and cannot be used, by a client or any other person or entity for the purpose of (i) avoiding penalties that may be imposed on any taxpayer or (ii) promoting, marketing, or recommending to another party any matters addressed herein.The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavour to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation.
KPMG International has created a state of the art digital platform that enhances your experience, optimized to discover new and related content.