Recently negotiations concerning an Intergovernmental Agreement (IGA) relating to US FATCA regulations (FATCA) have been concluded between Malta and the US.
Financial institutions must comply with certain prescribed reporting obligations for the purposes of the US tax rules. These would be relevant to taxpayers who are resident (or carrying on business) in Malta or the US. According to the IGA the financial institutions both in Malta and the US will submit the required information to their own tax authorities and such information with the other tax authority will automatically be shared. This information will be used by the Maltese and US tax authorities to ensure compliance with the relevant tax laws of two countries.
Compliance with the requirements of the FATCA rules involves careful administration and identification of clients need to be ensured in order to comply with the requirements of the FATCA. . Malta and the US intend to sign the IGA as soon as possible.
