An intergovernmental agreement between Ukraine and the United States was signed on 7 February 2017 to improve international tax compliance with respect to the US Foreign Account Tax Compliance Act (FATCA).
The agreement helps to reduce the opportunities for financial fraud and tax evasion, to promote a better exchange of information between Ukraine and the United States. FATCA will enable Ukrainian banks to share reporting on financial accounts maintained by U.S. citizens with the U.S. Internal Revenue Service (IRS). The United States enacted FATCA in 2010 to combat offshore tax evasion by encouraging transparency and obtaining information on accounts held by U.S. taxpayers in other countries.
