US citizens in Malta, returned migrants, urged to have US tax affairs in order
American citizens residing in Malta as well as some Maltese migrants were urged to get their US tax affairs in order during an information session on the US FATCA legislation.
Jonathan Phyall, Senior Legal & Compliance Officer at APS Bank explained that an agreement signed between the Malta and US governments to implement FATCA imposes certain obligations on Maltese banks and financial institutions. As of this year, Maltese financial institutions are required to report to Malta’s Inland Revenue Department (IRD) financial assets held by American citizens in Malta. The first such report covering the period July 1, 2014 to December 31, 2014 is due in April.
Pierre Vella, a Project Manager at the Malta Information Technology Agency (MITA) described how the information collected from financial institutions and reported to the IRD will be transmitted to the Inland Revenue Service (IRS), the US tax authority.
Massimo Pelli, European Manager of Corporate TeamWorks Inc, a leading US tax consultancy represented in Malta said all holders of US passports or Green Cards have an obligation to make an annual tax declaration to the US IRS. In recognition of the fact that many expats or returned migrants may have non-wilfully omitted to make their IRS declarations, new “streamlined” procedures are currently available that offer US taxpayers the opportunity to reach compliance with the IRS without risk of penalties.
