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Signing of FATCA agreement between the Republic of Cyprus and United States of America
On 2nd of December 2014, the Minister of Finance Mr Harris Georgiades on behalf of the Republic of Cyprus and the Ambassador of the United States in Nicosia, Mr John M.Koenig, have signed the Intergovernmental agreement (Model 1A Intergovernmental Agreement –“IGA”) to strengthen the international tax cooperation for the implementation of FATCA (Foreign Account Tax Compliance Act).
The competent authorities of the Republic of Cyprus and more specifically the Cyprus Department of Taxation will provide to the US Inland Revenue authorities any financial information in relation to bank accounts of US persons as defined in the agreement.
The signing of the agreement is an additional step for the Republic of Cyprus to progress in tax transparency and exchange of information.
Apparently, the completion of the agreement under reference will further promote Cyprus as a business center and boost the investment opportunities between the two countries and as well reinforce their business trade transactions.
The implementing legislation is expected to be enacted next month.
Article supplied by Eurofast