Malta has signed a FATCA intergovernmental agreement with the US to discourage offshore tax abuses.
As per the agreement, both the parties will mutually assist in tax matters based on an effective infrastructure for the automatic exchange of information.
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In addition, they will collectively work towards achieving common reporting and due diligence standards for financial institutions in long term.
Under the agreement, the parties should improve international tax compliance and provide for the implementation of FATCA based on domestic reporting and reciprocal automatic exchange pursuant to the agreement signed on 15 March 1989 (TIEA) and subject to the confidentiality and other protections provided for therein.
The deal was signed by Malta finance minister Edward Scicluna and US Ambassador Gina Abercrombie-Winstanley.
Commenting on the deal, Scicluna said the government would shortly announce details of an investment registration scheme for those who have funds in foreign accounts.
The scheme will allow Maltese citizens to comply and disclose their previously undeclared investments before the tax authorities act on the information received from abroad.
