Luxembourg Signs FATCA IGA with the United States

Luxembourg and the United States signed a FATCA Intergovernmental Agreement ("IGA") on March 28. According to the Association of the Luxembourg Fund Industry ("ALFI"), a group that represents the fund industry in Luxembourg, the IGA is a Model 1 form of agreement under which Luxembourg financial institutions and funds will provide account information to the Luxembourg Tax Authority, which will automatically transmit such information to the U.S. IRS. ALFI indicated that the Luxembourg Tax Authority has set up two working groups consisting of public and private parties to implement the IGA. One group will focus on the legal implementation of the IGA, while the other group will concentrate on technical questions regarding electronic communication of data and information between Luxembourg financial institutions and the Luxembourg government.

The text of the IGA has not yet been released. A copy of the press release issued by the ALFI is linked below.

See: Press Release.See also: Cabinet FATCA Materials (for Cabinet subscribers only).For more information, please contact Daniel Mulcahy and Mark Howe.