rp-18-36.pdf

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26 CFR 601.201: Rulings and determination letters
(Also Part 1, §§ 6049; 1.6049-4, 1.6049-8)

Implementation of Nonresident Alie n Deposit Interest Regulations

Rev. Proc. 2018-36

SECTION 1. PURPOSE

This revenue procedure provides a current list of the jurisdictions with respect to
which the reporting requirement of §§ 1.6049-4(b)(5) and 1.6049-8(a) of the Income
Tax Regulations applies, effective for interest paid on or after January 1, 2019.
This revenue procedure also provides a current list of the jurisdictions with which the
Department of the Treasury (Treasury Department) and the Internal Revenue Service
(IRS) have determined that it is appropriate to have an automatic exchange relationship
with resp ect to the information colle cted under §§ 1.6049-4(b)(5) and 1.6049-8(a).

SECTION 2. BACKGROUND

Secti ons 1.6049-4(b)(5) and 1.6049-8(a), as revised by TD 9584, 2012-20 I.R.B.
900, require the reporting of certain deposit interest paid to nonresident alie n individuals

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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, Foreign Person’s U.S. Source Income Subject to
Withholding, 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
jurisdiction 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
jurisdiction 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.
The preamble to the regulations noted that the IRS is not required to exchange
information with another jurisdiction, 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.
Rev. Proc. 2012-24, 2012-20 I.R.B. 913, was published contemporaneously with the
publication of TD 9584 to provide a list of those jurisdictions with which the United States
has in force an information exchange agreement, such that interest paid to residents of
such jurisdictions must be reported by payors to the extent required under §§ 1.6049-

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4(b)(5) and 1.6049-8(a), and to provide a separate list identifying those jurisdictions with
which the automatic exchange of the information collected under the regulations has been
determined by the Treasury Department and the IRS to be appropriate. Rev. Proc. 2012-
24 was updated and superseded by Rev. Proc. 2014-64, 2014-53 I.R.B. 1022, and the
lists of jurisdictions in Rev. Proc. 2014-64 were supplemented by Rev. Proc. 2015-50,
2015-42 I.R.B. 583; Rev. Proc. 2016-18, 2016-17 I.R.B. 635; Rev. Proc. 2016-56, 2016-
52 I.R.B. 920; Rev. Proc. 2017-31, 2017-16 I.R.B. 1104; and Rev. Proc. 2017-46, 2017-
43 I.R.B. 372.
This revenue procedure updates and restates the lists of jurisdictions in Rev. Proc.
2014-64 as supplemented, adding Argentina and Moldova as jurisdictions with which the
United States has in force a relevant information exchange agreement, and adding
Greece as a jurisdiction with which the relevant automatic exchange of information has
been determined appropriate.
SECTION 3. JURISDICTIONS OF RESIDENCE WITH RESPECT TO WHICH THE
REPORTING REQUIREMENT APPLIES
The following are the jurisdictions 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:
Antigua & Barbuda
Argentina
Aruba

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Australia
Austria
Azerbaijan
Bangladesh
Barbados
Belgium
Bermuda
Brazil
British Virgin Islands
Bulgaria
Canada
Cayman Islands
China
Colombia
Costa Rica
Croatia
Curaçao
Cyprus
Czech Republic
Denmark
Dominica
Dominican Republic
Egypt
Estonia
Faroe Islands
Finland
France
Germany
Gibraltar
Greece
Greenland
Grenada
Guernsey
Guyana
Honduras
Hong Kong
Hungary
Iceland
India
Indonesia
Ireland
Isle of Man
Israel

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Italy
Jamaica
Japan
Jersey
Kazakhstan
Korea, Republic of
Latvia
Liechtenstein
Lithuania
Luxembourg
Malta
Marshall Islands
Mauritius
Mexico
Moldova
Monaco
Morocco
Netherlands
Netherlands special municipalities: Bonaire, Sint Eustatius, and Saba
New Zealand
Norway
Pakistan
Panama
Peru
Philippines
Poland
Portugal
Romania
Russian Federation
Saint Lucia
Sint Maarten
Slovak Republic
Slovenia
South Africa
Spain
Sri Lanka
Sweden
Switzerland
Thailand
Trinidad and Tobago
Tunisia
Turkey
Ukraine

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United Kingdom
Venezuela

SECTION 4. JURISDICTIONS WITH WHICH THE TREASURY DEPARTMENT AND
THE IRS HAVE DETERMINED THAT AUTOMATIC EXCHANGE OF DEPOSIT
INTEREST INFORMATION IS APPROPRIATE
The following list identifies the jurisdictions 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
Azerbaijan
Belgium
Brazil
Canada
Colombia
Croatia
Czech Republic
Denmark
Estonia
Finland
France
Germany
Gibraltar
Greece
Guernsey
Hungary
Iceland
India
Ireland
Isle of Man
Israel
Italy
Jamaica
Je rse y
Korea, Republic of
Latvia
Liechtenstein

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Lithuania
Luxembourg
Malta
Mauritius
Mexico
Netherlands
New Zealand
Norway
Panama
Poland
Portugal
Saint Lucia
Slovak Republic
Slovenia
South Africa
Spain
Sweden
United Kingdom

SECTION 5. EFFECT ON OTHER DOCUMENTS
Rev. Procs. 2014-64, 2015-50, 2016-18, 2016-56, 2017-31, and 2017-46 are
superseded with respect to interest paid on or after January 1, 2019.
SECTION 6. EFFECTIVE DATE
With respect to the jurisdictions newly listed in Section 3, this revenue procedure is
effective for interest paid on or after January 1, 2019.
SECTION 7. DRAFTING INFORMATION
The principal author of this revenue procedure is Jackie Bennett Manasterli of the
Office of Associate Chief Counsel (International). For further information regarding this
revenue proce dure, co ntact Ms. Manasterli at (202) 317-6941 (not a toll- free ca ll) .