FATCA: agreement signed between Luxembourg and the United States of America
On 28 March, the Government of the United States of America and the Government of the Grand Duchy of Luxembourg signed an agreement to improve international tax compliance and to implement FATCA (Foreign Account Tax Compliance Act) model 1.
This agreement will include the automatic exchange of information between Luxembourg and the U.S tax authorities on assets held in Luxembourg by US citizens and residents of the United States. Luxembourg will thus introduce the automatic exchange of information in its relations with the United States on the same basis of the EU Savings Directive effective on 1 January 2015.
The signing of the agreement and the recent decision of Luxembourg to agree to the extension of the scope of the Savings Directive reflect Luxembourg's strong commitment to more transparency in tax matters on the basis of international standards applied by financial centres worldwide.