Luxembourg – FATCA Reporting Deadline Extended
The Luxembourg Tax Authorities have confirmed that the deadline for FATCA reporting with respect to financial accounts as of 31 December 2014 has been extended from 30 June 2015 to 31 July 2015.
The FATCA Agreement (Model 1) between Luxembourg and the United States was signed on 28 March 2014.
FATCA seeks to obtain information on accounts held by U.S. taxpayers in other countries. It requires U.S. financial institutions to withhold a portion of certain payments made to Foreign Financial Institutions (FFIs) who do not agree to identify and report information on U.S. account holders. Governments have the option of permitting their FFIs to enter into agreements directly with the IRS to comply with FATCA under U.S. Treasury Regulations or to implement FATCA by entering into one of two alternative Model IGAs with the United States.
Under the agreement, FFIs in Luxembourg will report the information required under FATCA about U.S. accounts to the Luxembourg Government, which in turn will report the information to the IRS. This agreement is reciprocal, meaning that the United States will also provide similar tax information to the Luxembourg Government regarding individuals and entities from Luxembourg with accounts in the United States.
