The Maltese Inland Revenue Department (IRD) has announced that this year's deadline to report according to the updated requirements of the Foreign Account Tax Compliance Act (FATCA) has been extended for this year only.
Maltese financial institutions (FIs) need to submit their reporting until the 31st of July. The usual reporting date is April 30th and as of next year, this will return to be the reporting deadline.
The FATCA agreement between Malta and the United States was signed on December 16th 2013 so that the two jurisdictions could collaborate on matters relating to tax compliance. According to this agreement, all financial institutions situated outside of the US are bound to submit regular information to the Internal Revenue Service (IRS) regarding financial accounts linked to US citizens.
In the instance that this is not done, a 30% withholding tax may apply to certain payments that are carried out by US-sourced income.
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