US and Vietnam sign Model 1 FATCA IGA, agreement not treated as “in effect”

The US Treasury Department updated its FATCA website on April 19, reporting that Vietnam has signed a Model 1 intergovernmental agreement (IGA) with the United States.

The Treasury Department states, though, that under IRS regulation section §1.1471-1(b)(78), the agreement will not be treated as if it is in effect.

As a result, financial institutions will not be treated as covered by a Model 1 IGA, including for withholding or registration purposes, until the IGA has entered into force, the US government said.

The text of the agreement is available.

See:

• Agreement between the Government of the United States of America and the Government of the Socialist Republic of Viet Nam to Improve International Tax Compliance and to Implement FATCA