Today, the Treasury Department announced that the United States has signed bilateral agreements with six additional jurisdictions to implement the information reporting and withholding tax provisions commonly known as the Foreign Account Tax Compliance Act (FATCA). According to Treasury, “Over the past week, Malta, the Netherlands, the Islands of Bermuda, and three UK Crown Dependencies – Jersey, Guernsey, and the Isle of Man – signed various agreements with the United States to implement FATCA.”
Deputy Assistant Secretary for International Tax Affairs Robert B. Stack said, “FATCA continues to gather momentum as we work with partners worldwide to combat offshore tax evasion. This large number of signings in one week alone sends a strong signal to tax evaders everywhere: international support for FATCA is growing.”
According to the Treasury, “Today, Bermuda signed a Model 2 agreement, meaning that Bermuda will direct and legally enable FFIs in Bermuda to register with the IRS and report the information required by FATCA about consenting U.S. accounts directly to the IRS. This requirement is supplemented by government-to-government exchange of information regarding certain pre-existing non-consenting accounts on request. Malta, the Netherlands, and each of the Crown Dependencies that signed this week entered into Model 1A agreements. Under these agreements, FFIs will report the information required under FATCA about U.S. accounts to their home governments, which in turn will report the information to the IRS. These agreements are reciprocal, meaning that the United States will also provide similar tax information to these governments regarding individuals and entities from their jurisdictions with accounts in the United States. In addition to these FATCA agreements, protocols to the existing tax information exchange agreements with Jersey, Guernsey, and the Isle of Man were also signed.”
Updates and further information on FATCA can be found by visiting the Treasury FATCA page here.
The agreements can be found at: