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Foreign Account Tax Compliance: Mauritius and USA Sign Agreement

Date: January 06, 2014
Domain:Economy & Finance
Persona: Business; Citizen; Government
 

GIS - 06 January, 2014: Mauritius and the United States of America signed a Tax Information Exchange Agreement (TIEA) and an Inter-governmental Agreement (IGA), for the implementation of the Foreign Account Tax Compliance Act (FATCA) between the two countries.
The signature ceremony was held on 27 December 2013 in Port Louis and the signatories were the Vice-Prime Minister, Minister of Finance and Economic Development, Mr Xavier-Luc Duval and the U.S. Ambassador to Mauritius, Ms Shari Villarosa.
The objective of the FATCA, enacted in March 2010 by the US authorities, is to identify US persons behind foreign financial holdings and communicate their corresponding investment information, namely their name, address, account number, account balance and income derived from such investments to the US Inland Revenue Service.
FATCA also provides that unless a foreign financial institution (FFI) has an FFI agreement with the Inland Revenue Service or is located in a jurisdiction that has an inter-governmental agreement with the US, a 30 percent withholding tax will be applied to payments of certain US-sourced income like interest, dividends and insurance premiums made to the foreign financial institution.
It will be noted that the Global Forum on Transparency and Exchange of Information for Tax Purposes has recently rated Mauritius as largely compliant with the international standards on transparency and exchange of information. Mauritius has scored the same rating similar to the United States, United Kingdom, Germany, Italy, Singapore and Hong Kong which confirms the position of the country as a sound jurisdiction of good repute and transparent.
 
Government Information Service, Prime Minister’s Office, Level 6, New Government Centre, Port Louis, Mauritius. Email: infserv@intnet.mu Website: http://gis.gov.mu
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