December 16, 2013: Malta FATCA Intergovernmental Agreement
Foreign Account Tax Compliance Act (FATCA)
Malta and the U.S. Sign FATCA Intergovernmental Agreement
On December 16, 2013, Malta and the United States signed an Intergovernmental Agreement (“IGA”) to improve international tax compliance with respect to FATCA. The agreement is based upon the Model 1A Reciprocal IGA and includes the FATCA deadlines consistent with Notice 2013-43.
With respect to reciprocal reporting requirements, the U.S. will need to provide a Tax Identification Number (TIN) to the tax authority in Malta for Malta residents (or date of birth if the TIN is not available) along with other information. Additionally, the IGA includes an Annex II listing certain exempt beneficial owners and products, and deemed compliant entities including: governmental entities, international organizations, central banks, certain pension/retirement funds, certain small or limited scope financial institutions qualifying as deemed-compliant FFIs1 , certain investment entities qualifying as deemed compliant FFIs2 , and certain account excluded from the definition of a financial account3.
As the July 1, 2014 FATCA withholding deadline approaches we can expect a continued focus on the FATCA IGAs and an increase in signing activity.
As used in this document, “Deloitte” means Deloitte Tax LLP, a subsidiary of Deloitte LLP. Please see www.deloitte.com/us/about for a detailed description of the legal structure of Deloitte LLP and its subsidiaries. Certain services may not be available to attest clients under the rules and regulations of public accounting.