IRS Updates List of Countries For Exchange of Bank Interest Information and Who Qualify for Auto Exchange of Information

The Internal Revenue Service added 7 additional jurisdictions to the list of those with which the U.S. has agreements for exchange of information for purposes of reporting bank interest paid to nonresident aliens.


The 7 additional jurisdictions include:

1. Brazil,
2. Cayman Islands,
3. Colombia,
4. Croatia,
5. Curacao,
6. Hong Kong and
7. Mauritius.

Bring the total to 86 countries with which the U.S. has agreements for exchange of information for purposes of reporting bank interest.

The following are the countries with which the United States has in effect an income tax or other convention or bilateral agreement relating to the exchange of tax information within the meaning of section 6103(k)(4) pursuant to which the United States agrees to provide, as well as receive, information and under which the competent authority is the Secretary of the Treasury or his delegate:

1. Antigua & Barbuda
2. Aruba
3. Australia
4. Austria
5. Azerbaijan
6. Bangladesh
7. Barbados
8. Belgium
9. Bermuda
10. Brazil
11. British Virgin Islands
12. Bulgaria
13. Canada
14. Cayman Islands
15. China
16. Colombia
17. Costa Rica
18. Croatia
19. Curacao
20. Cyprus
21. Czech Republic
22. Denmark
23. Dominica
24. Dominican Republic
25. Egypt
26. Estonia
27. Finland
28. France
29. Germany
30. Gibraltar
31. Greece
32. Grenada
33. Guernsey
34. Guyana
35. Honduras
36. Hong Kong
37. Hungary
38. Iceland
39. India
40. Indonesia 
41. Ireland
42. Isle of Man
43. Israel
44. Italy
45. Jamaica
46. Japan
47. Jersey
48. Kazakhstan
49. Korea (South)
50. Latvia
51. Liechtenstein
52. Lithuania
53. Luxembourg
54. Malta
55. Marshall Islands
56. Mauritius
57. Mexico
58. Monaco
59. Morocco
60. Netherlands
61. Netherlands island territories: Bonaire, Saba, and St. Eustatius 
62. New Zealand
63. Norway
64. Pakistan
65. Panama
66. Peru
67. Philippines
68. Poland
69. Portugal
70. Romania
71. Russian Federation
72. Slovak Republic
73. Slovenia
74. South Africa
75. Spain
76. Sri Lanka
77. St. Maarten (Dutch part)
78. Sweden
79. Switzerland
80. Thailand
81. Trinidad and Tobago
82. Tunisia
83. Turkey
84. Ukraine
85. United Kingdom
86. Venezuela

The guidance also updates the list of jurisdictions with which automatic exchange of information is appropriate. The 2012 list consisted only of Canada. The new list contains 18 jurisdictions including:

1. Australia 
2. Canada  
3. Denmark 
4. Finland 
5. France  
6. Germany  
7. Guernsey  
8. Ireland  
9. Isle of Man  
10. Italy  
11. Jersey  
12. Malta  
13. Mauritius 
14. Mexico  
15. Netherlands  
16. Norway 
17. Spain  
18. United Kingdom

This guidance is effective for interest paid on or after January 1, 2015, and will be used by U.S. financial institutions making payments of deposit interest of $10 or more on deposits maintained at an office within the United States to nonresident alien individuals.

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Rev. Proc. 2014-64

1
Part III
Administrative, Procedural, and Miscellaneous
26 CFR 1.6049.00-00: Returns Relating to Payments of Interest
(Also: 1.3406.07-00 Exceptions to Backup Withholding)
Update of Rev. Proc. 2012-24, Implementation of Nonresident Alien Deposit Interest Regulations
Rev. Proc. 2014-64
SECTION 1. PURPOSE
This revenue procedure lists, in Section 3, the countries with which the United States has in effect an income tax or other convention or bilateral agreement relating to the exchange of information within the meaning of section 6103(k)(4) of the Internal Revenue Code pursuant to which the United States agrees to provide, as well as receive, information and under which the competent authority is the Secretary of the Treasury or his delegate for purposes of the reporting required of payors under §§1.6049-4(b)(5) and 1.6049-8(a) of the Income Tax Regulations.

This revenue procedure also lists, in Section 4, the countries with which the Treasury Department and the IRS have determined that it is appropriate to have an automatic exchange relationship with respect to the information collected under §§1.6049-4(b)(5) and 2
1.6049-8. This revenue procedure updates Rev. Proc. 2012-24, 2012-20 I.R.B. 913, effective for interest paid on or after January 1, 2015, by adding additional countries to the lists set forth in Sections 3 and 4.
SECTION 2. BACKGROUND
Sections 1.6049-4(b)(5) and 1.6049-8(a), as revised by TD 9584, require the reporting of certain deposit interest paid to nonresident alien individuals on or after January 1, 2013. Section 1.6049-4(b)(5) provides that in the case of interest aggregating $10 or more paid to a nonresident alien individual (as defined in section 7701(b)(1)(B)) that is reportable under §1.6049-8(a), the payor is required to make an information return on Form 1042-S for the calendar year in which the interest is paid. Interest that is reportable under §1.6049-8(a) is interest described in section 871(i)(2)(A) that relates to a deposit maintained at an office within the United States and that is paid to a resident of a country that is identified, in an applicable revenue procedure (see §601.601(d)(2)) as of December 31 prior to the calendar year in which the interest is paid, as a country with which the United States has in effect an income tax or other convention or bilateral agreement relating to the exchange of tax information within the meaning of section 6103(k)(4), under which the competent authority is the Secretary of the Treasury or his delegate and the United States agrees to provide, as well as receive, information. Rev. Proc. 2012-24 was published contemporaneously with the publication of TD 9584 to identify those countries with which the United States has in force an information exchange agreement, such that interest paid to residents of such countries must be reported by payors to the extent required under §§1.6049-8(a) and 1.6049-4(b)(5). This revenue procedure updates Rev. Proc. 2012-24 and will be 3
updated by subsequent revenue procedures as appropriate. As noted in the preamble to the regulations and Rev. Proc. 2012-24, the IRS is not required to exchange information with another country, even if an information exchange agreement is in effect, if there are concerns about confidentiality, safeguarding of data exchanged, the use of the information, or other factors that would make the exchange of information inappropriate.

SECTION 3. COUNTRIES OF RESIDENCE WITH RESPECT TO WHICH THE REPORTING REQUIREMENT APPLIES
The following are the countries with which the United States has in effect an income tax or other convention or bilateral agreement relating to the exchange of tax information within the meaning of section 6103(k)(4) pursuant to which the United States agrees to provide, as well as receive, information and under which the competent authority is the Secretary of the Treasury or his delegate:

1. Antigua & Barbuda
2. Aruba
3. Australia
4. Austria
5. Azerbaijan
6. Bangladesh
7. Barbados
8. Belgium
9. Bermuda
10. Brazil
11. British Virgin Islands
12. Bulgaria
13. Canada
14. Cayman Islands
15. China
16. Colombia
17. Costa Rica
18. Croatia
19. Curacao
20. Cyprus
21. Czech Republic
22. Denmark
23. Dominica
24. Dominican Republic
25. Egypt
26. Estonia
27. Finland
28. France
29. Germany
30. Gibraltar
31. Greece
32. Grenada
33. Guernsey
34. Guyana
35. Honduras
36. Hong Kong
37. Hungary
38. Iceland
39. India
40. Indonesia 
41. Ireland
42. Isle of Man
43. Israel
44. Italy
45. Jamaica
46. Japan
47. Jersey
48. Kazakhstan
49. Korea (South)
50. Latvia
51. Liechtenstein
52. Lithuania
53. Luxembourg
54. Malta
55. Marshall Islands
56. Mauritius
57. Mexico
58. Monaco
59. Morocco
60. Netherlands
61. Netherlands island territories: Bonaire, Saba, and St. Eustatius 
62. New Zealand
63. Norway
64. Pakistan
65. Panama
66. Peru
67. Philippines
68. Poland
69. Portugal
70. Romania
71. Russian Federation
72. Slovak Republic
73. Slovenia
74. South Africa
75. Spain
76. Sri Lanka
77. St. Maarten (Dutch part)
78. Sweden
79. Switzerland
80. Thailand
81. Trinidad and Tobago
82. Tunisia
83. Turkey
84. Ukraine
85. United Kingdom
86. Venezuela

SECTION 4. COUNTRIES WITH WHICH TREASURY AND THE IRS HAVE DETERMINED THAT AUTOMATIC EXCHANGE OF DEPOSIT INTEREST INFORMATION IS APPROPRIATE
The following list identifies the countries with which the automatic exchange of the information collected under §§1.6049-4(b)(5) and 1.6049-8 has been determined by the Treasury Department and the IRS to be appropriate:
Australia
Canada
Denmark
Finland
France
Germany
Guernsey
Ireland
Isle of Man
Italy
Jersey
Malta
Mauritius
Mexico
Netherlands
Norway6
Spain
United Kingdom 

SECTION 5. EFFECT ON OTHER DOCUMENTS
Revenue Procedure 2012-24, 2012-1 C.B. 913, is superseded with respect to interest paid on or after January 1, 2015.
SECTION 6. EFFECTIVE DATE
This revenue procedure is effective for interest paid on or after January 1, 2015.
SECTION 7. DRAFTING INFORMATION
The principal author of this revenue procedure is Leni C. Perkins of the Office of Associate Chief Counsel (International). For further information regarding this revenue procedure contact Ms. Perkins on (202) 317-6942 (not a toll free call).