17 December 2013

Isle Of Man Signs Landmark Agreement With United States

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A landmark agreement on sharing tax information was signed on Friday 13 December by the Isle of Man and the United States.
Isle of Man Tax
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A landmark agreement on sharing tax information was signed on Friday 13 December by the Isle of Man and the United States.

The intergovernmental agreement was signed by Isle of Man Chief Minister Allan Bell and His Excellency Matthew Burzan, US Ambassador to the UK at the US Embassy in London; it follows the ground breaking agreement the Isle of Man signed with the UK just over a month ago.

It follows the introduction of the Foreign Account Tax Compliance Act (FATCA) in the US. FATCA requires financial institutions to report information on accounts held by US taxpayers.

The Isle of Man has signed a Model 1A agreement which requires companies in the Isle of Man to report the required information directly to the Income Tax Division for onward transmission to the US. It is a reciprocal agreement and information will be exchanged from 2015.

Allan Bell, the Isle of Man Chief Minister, said:

'The Isle of Man has been at the forefront of developments in transparency and tax information exchange for many years and today's signing is an important next step. The signing of this agreement further enhances the Isle of Man's reputation as a transparent and responsible centre for international business. We look forward to working with the US to ensure the agreement's effective and efficient implementation.

'The Isle of Man is also fully committed to working towards a new global standard in automatic exchange of information and is actively engaged in the development of a single global standard.'

Isle of Man Treasury Minister Eddie Teare MHK added:

'The signing of this Model 1A agreement is important both domestically and internationally. I know many Isle of Man financial institutions have been waiting for this agreement and will welcome the certainty it provides. It will serve to enhance and strengthen business links between the Isle of Man and the US and further demonstrates the Island's commitment to transparency.'

The next step for the Isle of Man will be to publish Guidance Notes covering both the US FATCA agreement and the similar agreement signed recently with the UK.

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