rp-12-24.pdf

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# 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)

Implementation of Nonresident Alien Deposit Interest Regulations

Rev. Proc. 2012-24

# SECTION 1. PURPOSE

Sections 1.6049-4(b)(5) and 1.6049-8 of the Income Tax Regulations, as revised
by TD 9584, require the reporting of certain deposit interest paid to nonresident alien
individuals on or after January 1, 2013. The purpose of this revenue procedure is to list,
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) 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, as described in §1.6049-8(a). As discussed in
the preamble to the regulations, even when such an agreement exists, the Internal
Revenue Service (IRS) is not compelled to exchange information, including information
collected pursuant to the regulations, if there is concern regarding the use of the
information or other factors exist that would make exchange inappropriate. This revenue
procedure also identifies 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 the regulations. This
revenue procedure will be updated as appropriate.

# SECTION 2. BACKGROUND

The regulations provide that in the case of reportable interest aggregating $10 or
more paid to a nonresident alien individual (as defined in section 7701(b)(1)(B) of the
Internal Revenue Code), the payor shall make an information return on Form 1042-S for
the calendar year in which the interest is paid. Reportable interest 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 nonresident alien individual who is a resident of a country
identified, in an applicable revenue procedure (see §601.601(d)(2) of this chapter) 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 information within the meaning of section

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6103(k)(4) pursuant to which 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. This revenue procedure constitutes the revenue procedure referenced in
§1.6049-8(a) and will be updated by subsequent revenue procedures as appropriate.

# SECTION 3. COUNTRIES OF RESIDENCE WITH RESPECT TO WHICH THE REPORTING REQUIREMENT APPLIES

The following are 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:

Antigua & Barbuda

Aruba

Australia

Austria

Azerbaijan

Bangladesh
Barbados

Belgium

Bermuda

British Virgin Islands

Bulgaria

Canada

China

Costa Rica

Cyprus

Czech Republic

Denmark
Dominica

Dominican Republic

Egypt

Estonia

Finland

France

Germany

Gibraltar

Greece

Grenada

Guernsey
Guyana

Honduras
Hungary

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Iceland
India
Indonesia
Ireland
Isle of Man
Israel

Italy

Jamaica

Japan

Jersey

Kazakhstan

Korea (South)

Latvia

Liechtenstein

Lithuania

Luxembourg

Malta

Marshall Islands

Mexico

Monaco

Morocco

Netherlands

Netherlands island territories: Bonaire, Curacao, Saba, St. Eustatius and
St. Maarten (Dutch part)

New Zealand

Norway

Pakistan

Panama

Peru

Philippines

Poland

Portugal

Romania

Russian Federation

Slovak Rep.

Slovenia

South Africa

Spain

Sri Lanka

Sweden

Switzerland

Thailand

Trinidad and Tobago

Tunisia

Turkey

Ukraine

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# 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:

## Canada

### SECTION 5. EFFECTIVE DATE

This revenue procedure is effective for interest paid on or after January 1, 2013.

#### SECTION 6. DRAFTING INFORMATION

The principal author of this revenue procedure is Kathryn T. Holman of the Office
of Chief Counsel International (International). For further information regarding this
revenue procedure contact Kathryn T. Holman on (202) 622-3840 (not a toll free call).