Luxembourg and USA sign FATCA Model 1 IGA
The Luxembourg and US governments have today signed an agreement to improve international tax compliance and implement the so-called Model 1 Intergovernmental Agreement (IGA) of the US Foreign Account Tax Compliance Act (FATCA).
As a result of this agreement, the Luxembourg Tax Administration has set up two working groups including different actors from the public and private sectors in order to implement the automatic exchange of information under this agreement.
The first working group focuses on general issues relating to the implementation of the agreement, while the second will deal mainly with technical questions regarding the electronic communication of information between reporting financial institutions and the Tax Administration (like communication channels, format etc.)
The Association of the Luxembourg Fund Industry (ALFI) welcomed the agreement and reaffirmed its commitment to ensure that ALFI members are best prepared for its implementation.