Luxembourg-US Intergovermental FATCA agreement signed
The Luxembourg tax authorities this morning announced that the intergovernmental FATCA agreement (model 1) between Luxembourg and the United States was signed on 28 March 2014. This agreement sets an automatic exchange of FATCA data between the two countries from 30 September 2015 at the latest.
The government has set up two working groups, gathering together people from both the public and private sector; the first is in charge of the general questions regarding the implementation of the agreement, while the second will look at the technical questions regarding the electronic exchange of information between Luxembourg financial institutions and tax authorities.
The tax administration has already confirmed that digital transmission of information will be accepted. It has also been decided that the automatic exchange of FATCA data will adopt the FATCA XML Schema (more details here).
The Luxembourg Ministry of Finance will publish the text on its website at the beginning of April, and circulars should be launched by the Luxembourg tax authorities in due time.
Contact our Luxembourg office for more details on how the IGA could affect your business.