The Finance Minister, Haris Georgiadis, on behalf of the Cyprus Republic and the Ambassador of the United States in Nicosia, Mr. John M. Koenig, from the United States, signed on 02/12/2014 the intergovernmental agreement (Intergovernmental Model 1A Agreement) to strengthen the International Tax Co-operation for the implementation of FATCA (Foreign Account Tax Compliance Act).
Based on reporting agreement, the competent authorities of Cyprus Republic (Department of Taxation Ministry of Finance) will provide US authorities (Inland Revenue Service) financial information in relation to bank accounts of US persons as defined in the agreement.
To date, the US has signed over 40 intergovernmental agreements (FATCA), becoming a global standard in the Government effort US to curb tax evasion and avoidance on offshore activities and encouraging transparency.
The signature of the reporting interstate agreement is another step the efforts of the Republic of Cyprus for progress in tax transparency and exchange of information. It is obvious that the conclusion of the Agreement under reference will upgrade Cyprus as a business center, will further boost investment between the two countries strengthening their trade to the benefit of both economies.