Iga Agreement Between Luxembourg And Us

On 27 February 2014, Luxembourg and the United States agreed on the content of the Model 1 Agreement (“IGA Model 1”) and the IGA Model 1 was signed on 28 March 2014. The agreement between the Government of the United States of America and the Government of the Grand Duchy of Luxembourg on improving international tax compliance and implementing the Foreign Account Tax Compliance Act (FATCA) was signed today, Friday 28 March 2014 in Luxembourg. The first working group will focus on general issues related to the implementation of the agreement, while the second will mainly deal with technical issues related to the electronic transmission of information between reporting financial institutions and the tax administration (such as communication channels, format, etc.). The 28 IGA, signed between Luxembourg and the United States on 1 March 2014, essentially provides for an automatic exchange of information between the Luxembourg and US tax authorities on financial accounts (e.g. B bank accounts, insurance contracts and investment fund units) held in Luxembourg by citizens and residents of the United States. The IGA, signed with the United States, provides for a certain degree of reciprocity on the part of the United States, which has undertaken to exchange with Luxembourg certain information on the financial accounts of natural and legal persons established in Luxembourg and held by American financial institutions. As part of the signing of the FatCA Model 1 intergovernmental agreement between Luxembourg and the United States of 28 March 2014, the Luxembourg tax administration set up two working groups bringing together different actors from the public and private sectors to implement the automatic exchange of information under this agreement. The protocol amending the income tax agreement between Luxembourg and the United States has been ratified, according to a statement from the Luxembourg government. The Protocol [PDF 548 KB] was signed in May 2009 and provides for a broad exchange of information between competent authorities for tax purposes. The IGA between Luxembourg and the United States provides for a first exchange of information between these two countries by September 2015. As regards Luxembourg, the first exchange of information from the end of 2014 will focus on the account balances that Luxembourg financial institutions will have to inform the Luxembourg tax authorities before 30 June 2015.

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