On 16 December 2013, the Government of Malta announced the signature of the FATCA Inter-governmental Agreement (IGA) between Malta and the United States. As announced back in July 2013, the IGA negotiated and agreed by Malta follows the Model 1 IGA (reciprocal version).

By adopting the Model 1 IGA Maltese investment funds, banks and insurers should be able to register and report directly to the Maltese tax authorities in respect of their US resident beneficial owners / shareholders. Subject to appropriate guidance from US tax counsel, Malta registered financial institutions may therefore be exempted from US withholding tax on income received from US investments and from themselves withholding tax on payments made to US resident beneficial owners / shareholders.

For more information or if you have any questions, please feel free to contact Dr. Stephen Attard (Partner, Taxation).