FATCA (Foreign Account Tax Compliance Act)
From 2016 most of the banks worldwide will automatically provide the information of their clients to the relevant tax authorities.This will be a global automatic tax information exchange.
Where does it come from?
What is a FATCA?
FATCA is an acronym for the Foreign Account Tax Compliance Act, adopted and promulgated in March 2010, in the United States of America. The purpose of FATCA is to ensure that U.S. persons pay the appropriate tax set by the U.S. also for their financial assets held outside the U.S.
The FATCA regulation requires foreign financial institutions to introduce a new and wider client screening and registration system in order to be able to identify U.S. accounts and report the information required about them to the IRS (Internal Revenue Service).
FATCA affects nearly 150,000 organizations across the world, including credit institutions, investment companies, fund managers, brokerages and insurers.
FATCA imposes numerous obligations on both financial institutions and customers. In order to appropriately perform these obligations and to exempt Hungarian financial institutions from the 30 percent witholding imposed on incomes from a United States trade or business, on February 4, 2014, the Government of Hungary and the United States of America signed an Intergovernmental Agreement (IGA) to support the automatic exchange of information between the tax authorities of the two countries and the performance of the duties determined in the provisions of FATCA.
On 16th December, 2013 Malta and the US signed an agreement to implement FATCA in Malta (Agreement between the Government of the United States of America and the Government of the Republic of Malta to Improve International Tax Compliance and to Implement FATCA – incorporated into Maltese law through LN 78 of 2014). Implementing regulations have also been enacted in LN 295 of 2011 (as amended).
We could count all countries that have joined already.
For accounts opened on or after July 1, 2014, banks are obliged to check the account holder’s tax residency. The purpose of the tax residency check is to determine whether the account holder is resident in the United States of America for tax purposes. The basis of the residency check is the account holder’s declaration made on a mandatory basis.
Further information on FATCA, the intergovernmental agreement and tax documents is available in English on the following site: www.irs.gov.
Malta is in the leader board with the World’s 7th Most Powerful Passport
Malta, the EU country has the 7th best passport in the world. Nowadays this is the most successful citizenship-by-investment program which has raised over EUR 1 billion in capital since its launch at the beginning of 2015.
Obtaining citizenship through the Malta Individual Investor Program means visa-free access to 167 countries out of a possible 218, along with many other benefits:
• The right to live, work and study in any of the 28 EU countries and Switzerland
• World’s strictest due diligence standards and vetting of applicants, which mean, only highly respectable applicants will be admitted
• Citizenship of a well-respected EU country
• Reasonable contribution and efficient application process
• Malta is an attractive place to live or to own a second home.
Malta is hosting the Commonwealth Heads of Government Meeting for a second time, having successfully done so in 2005. Malta has served throughout history as a bridge between North Africa and Europe. Now, as the CHOGM host for 2015, Malta provides a platform for Commonwealth countries to come together to build bridges of cooperation. CHOGM Malta 2015 will be held between the 27 and 29 of November 2015.
This significant event will be attended by Her Royal Highness Queen Elizabeth II.
The theme of this year’s CHOGM is ‘The Commonwealth – Adding Global Value’ and it focuses on how the Commonwealth’s strengths can be utilised to influence and effect change on important global issues, such as human rights, gender equality, climate finance, building resilience in small states and the empowerment of youth.(Back to the Malta citizenship)