Malta has become the latest country to sign a FATCA intergovernmental agreement with the US.
The island jurisdiction, noted for its high number of double taxation agreements, negotiated individually with the US in order to conclude a FATCA agreement after the European Commission’s attempts to adopt a common approach for all states did not work.
Malta’s minister for finance Edward Scicluna and US ambassador Gina Abercrombie–Winstanley signed the Foreign Account Tax Compliance Act yesterday.
Abercrombie–Winstanley said the signing marked a “significant step forward in our countries’ efforts to work collaboratively to combat offshore tax evasion”.
Scicluna said: “The OECD Global Forum ‘Report on Transparency and Exchange of Information for Tax Purposes’ has shown that Malta effectively is largely compliant, similar to the US, UK and Germany.”
He also highlighted that the soon-to-be launched Investment Registration Scheme is meant to give the opportunity to Maltese citizens to voluntarily comply and disclose their previously undeclared investments before the tax authorities act on the information received from abroad.
Earlier this week, Jersey, Guernsey and the Isle of Man all signed intergovernmental agreements with the US to implement the Foreign Account Tax Compliance Act.
Meanwhile, Malta's Green Party revealed this week that the European Parliament will next month consider the issue of EU countries offering residency and citizenship to non-EU nationals in exchange for money.