Gibraltar has signed an intergovernmental agreement (IGA) with the US to improve international tax compliance and implement the Foreign Account Tax Compliance Act (FATCA).
FATCA introduces a reporting regime for financial institutions with respect to certain financial accounts.
The agreement aims to improve international tax compliance through mutual assistance in tax matters based on an effective infrastructure for the automatic exchange of information.
The signing of the IGA, which took place at the Embassy of the United States in London, follows consultation with the industry in Gibraltar and the views of a working group specifically set up to consider FATCA and its impact on the financial services sector.
Albert Isola, minister for financial services and gaming in Gibraltar, says: “The international community considers automatic exchange of information to be the most effective way to tackle tax evasion while minimising costs for governments and businesses. The signing of FATCA IGA with the United States demonstrates that Gibraltar is committed to working together with partner countries in leading the agenda on tax transparency, thereby boosting global efforts to eradicate tax evasion.”
Julie Nutter, minister counsellor for economic affairs at the United States Embassy in London, signed the Intergovernmental agreement on behalf of the US on 8 May 2014.
