The updated model intergovernmental agreements (IGAs) were posted on the Treasury’s website earlier this month, and are aimed at helping non-US banks and other foreign financial institutions to meet their reporting obligations under the Foreign Account Tax compliance Act.
Both the Model A IGA and Model B IGA may be found by clicking here, along with such other documents as annexes and variations that apply where there is no pre-existing tax information exchange agreement or double tax agreement.
According to KPMG, the changes to the agreements concern one of the annexes, known as Annex II. In a research note for clients, KPMG said that agreements under Annex II to the model IGAs thus far "have been separately negotiated by each country", but it found that the separate negotiations were "slowing down the process, and the updated May 2013 versions are intended to address this situation".
