Malta Signs FATCA IGA with United States; Other FATCA Developments

The Government of Malta announced that it has entered into a Model 1A (Reciprocal) Intergovernmental Agreement ("IGA") with the United States. Under the terms of the IGA, each country agrees to collect and turn over to the other country its information on accounts maintained within its borders by residents of that other country. In connection with signing the IGA, Malta announced that it would soon be announcing a voluntary disclosure plan for residents of Malta to file and pay taxes that have not previously been reported before disclosure begins under the IGA. The text of the IGA has not yet been released.

In other FATCA news, the text of the IGA between Guernsey and the United States, which was signed on December 13, 2013, has been released along with a Protocol to the current Tax Information Exchange Agreement between the two countries. As anticipated, it is a Model 1A (Reciprocal) agreement. In addition, Russian Prime Minister Dmitry Medvedev has announced that he has ordered the Russian Finance Ministry and Central Bank to agree to an IGA with the United States by January 2014.

See: Guernsey IGA; Guernsey Protocol.See also: Cadwalader FATCA Materials.For more information, please contact Mark Howe or Daniel Mulcahy.