US Foreign Account Tax Compliance Act - Irish / US Agreement
The Irish and US Governments today, 21 December 2012, signed an Intergovernmental Agreement ("IGA") in respect of the US Foreign Account Tax Compliance Act ("FATCA").
The Irish Minister for Finance commented that, "Ireland is one of the first countries in the world to sign such an Agreement with the United States. This Agreement will have a positive impact on trade and investment between Ireland and the United States, and will provide certainty and clarity to Irish and American Financial Institutions who wish to do business with each other".
As announced in our recent Irish Budget 2013 update, the IGA will allow Irish financial institutions, investment funds and investment companies to report to the Irish tax authorities rather than directly to the US Internal Revenue Service.
This is an extremely positive step for Ireland’s investment fund and securitisation regimes, providing certainty of treatment and administrative efficiency for arrangers and investors.
A more detailed update from the Maples and Calder Tax Group will follow once the related Irish legislation has been published.
Please click here to read the Irish Government's press release and the text of the IGA.