Bahrain, US sign tax agreement

Manama : With an aim to combat tax evasion and ensure a more stable financial system, Bahrain and the United States of America have signed an agreement to implement the Foreign Account Tax Compliance Act (FATCA).

As per the agreement, signed by the Minister of Finance Shaikh Ahmed bin Mohammed Al Khalifa and U.S. Ambassador William Roebuck on January 18, Bahrain will share on an annual basis with the US, financial information regarding the US accounts in the Kingdom.

“FATCA will help increase transparency for financial institutions and help combat offshore tax evasion thereby ensuring a stronger and more accountable global financial system,” the minister said.

The agreement applies to US citizens only and will be submitted to the legislative authority for approval according to standard procedures.

The US has signed similar agreements with several countries to ensure the implementation of FATCA, issued in 2010, to combat tax evasion through the reporting of information on the identities and accounts of their US clients to the US Treasury of information.