Malta-US Tax Agreement. Malta has a few days ago signed the Foreign Account Tax Compliance Act agreement with the U.S. For the United States to receive from Malta the information they require and submit it to their own Tax Authority they had to proceed with the signing of the above mentioned agreement which will have as a result the automatic exchange of information between the two states.
An additional reason which motivated Malta to sign this agreement is the fact that this agreement will help to reduce the responsibility of having to comply with the Fatca regulations regarding the financial institutions of Malta and also to supply a system by which the Maltese can fulfill their obligations without having to breach the laws for data protection of Malta.
The signing of this agreement is considered to be by both countries an important step forward regarding the work put into cooperation between the two countries in the global fight against tax evasion, a goal which they consider as mutually beneficial for both countries. For more information about tax planning and tax optimization from our firm follow this link: Cyprus Taxes
A report on transparency and exchange of information for tax purposes, by the Global Forum of O.E.C.D. demonstrates that Malta, as well as Germany, the United States and United Kingdom, is also quite effective and willing to cooperate for the above mentioned cause. The Maltese Government has stated that this it is in the best interests of the citizens of both countries to obey the tax laws of their countries and based on this belief an Investment Registration Scheme will soon be applied.
Its goal is to give the chance to the citizens of Malta to comply and reveal their undeclared investments at their own will, before the information received from abroad reaches the Tax Authority in Malta and the Tax Authority acts based on this information. Malta is not the only country which signed the above agreement already and other countries are expected to proceed accordingly.