In Information Release 2015-01, the IRS announced the International Data Exchange Service (IDES) has opened for enrollment. IDES will be used by non-U.S. financial institutions (FIs) and host country tax authorities (HCTAs) to securely send FATCA-required information on financial accounts held by specified U.S. persons, or held by foreign entities with one of more substantial U.S. owners, and have relevant account information reported to the IRS. Note that Luxembourg FIs shall not use the IDES system, given that Luxembourg has signed an Intergovernmental Agreement with the US. Luxembourg FIs should rather report to the Luxembourg Tax Authorities, who in return will report to the IRS.
According to the Information Release, over 145,000 non-U.S. financial institutions have registered through the IRS FATCA Registration System and are subject to reporting requirements under the U.S. Treasury FATCA regulations or under an intergovernmental agreement (IGA), as appropriate. Relevant information must be electronically reported on IRS Form 8966 or via transmission to the IRS using IDES.
IDES is a web-based application the main function of which is to provide authorized users (FIs and HCTAs) a secure mechanism to transmit FATCA data directly to the IRS. The data must be provided in a standard XML schema format and capture the relevant information as is provided on the FATCA Report (Form 8966). To transmit information in IDES, a FI will need to:
FATCA reporting begins in 2015 for FATCA-reportable information identified in 2014. The FATCA Report, Form 8966, is due to be electronically submitted to the IRS on or before 31 March 2015. For FIs reporting equivalent information to a HCTA, reporting deadlines vary by country and should be obtained from the FI’s local government. HCTAs will subsequently report FATCA information to the IRS on or before 30 September 2015.
For Your Reference
For more information, the IRS’s information page for IDES can be accessed by clicking here: International-Data-Exchange-Service
The IDES User Guide can be accessed by clicking here: p5190idesuserguide.pdf (PDF, 3.17 MB)
To download the standard XML schema format, click here:FATCA-XML-Schemas-and-Business-Rules-for-Form-8966
The IRS’s Questions and Answers regarding the IDES system can be accessed by clicking here: FATCA-IDES-Technical-FAQs
The second part of Resolución Miscelánea Fiscal para 2015 was published last week in the official journal and includes an "annex" concerning the rules for implementing an agreement between the Mexican Ministry of Finance (Secretaría de Hacienda y Crédito Público) and the U.S. Treasury Department regarding the FATCA regime.
Others provisions under the various anexos address the criteria for binding tax and customs rulings, requirements for economic activities, and standards for controlling gasoline, diesel, natural gas, and LPG sold via establishments open to the general public.
Read a January 2015 report (Spanish) prepared by the KPMG member firm in Mexico: Anexos a la Resolución Miscelánea Fiscal 2015 - Segunda parte.
For further information, please do not hesitate to contact us.
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