Malta, a southern European country in the Mediterranean Sea, is expected to sign a model intergovernmental deal with the US.
The deal will include few requirements and deadlines set out in the American Foreign Account Tax Compliance Act (FATCA), reported timesofmalta.com.
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PwC Malta tax leader and partner Neville Gatt told timesofmalta.com that FATCA is one of various initiatives around the world to combat tax evasion through new reporting obligations imposed on financial firms worldwide.
"Failure to meet these new reporting obligations would result in a financial institution suffering a 30% withholding tax on certain US source income," Gatt added.
The Malta Funds Industry Association (MFIA) chairman Kenneth Farrugia told timesofmalta.com, "FATCA will have a significant process and technological impact on the fund industry and the MFIA has over the past months been very active on this subject by issuing a technical brief and holding this educational clinic in order to update and assist its members to gear up for this new requirement."
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