An agreement has been concluded between Luxembourg and the US to ensure that institutions may carry out the provisions of the Foreign Account Tax Compliance Act (FATCA). The two countries reached the agreement on the basis of one of the model intergovernmental agreements (IGAs) used by the US to conclude these accords. The agreement enables the two countries to exchange information automatically in respect of the accounts of US taxpayers in financial institutions in Luxembourg. The agreement still needs to be approved by Luxembourg’s parliament but is expected to give institutions enough time to prepare their systems to conform to the demands of the FATCA legislation.
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US – IRS Advises Taxpayers with Foreign Income
US – IRS Advises Taxpayers with Foreign Income
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