KUALA LUMPUR: Malaysia has joined 113 countries in implementing the Foreign Account Tax Compliance Act (FATCA), after signing an agreement with the United States.
FATCA is an initiative by the United States to improve the practice on exchange of information on tax matters, especially on United States citizens.
The signing of the agreement between treasury secretary-general Datuk Asri Hamidon and United States ambassador Brian McFeeters took place virtually on Wednesday at Putrajaya and Kuala Lumpur, in the presence of Deputy Finance Minister II Mohd Shahar Abdullah.
In a statement, the Finance Ministry said the signing of the agreement would pave way to a more comprehensive bilateral tax agreement, which will further benefit the taxpayers of Malaysia and the United States.
Shahar said with recent developments in the international tax system, the significant improvement on transparency and exchange of tax information practices between jurisdictions means that countries are now moving towards greater collaboration, especially in addressing the issue of tax evasion and tax avoidance.
McFeeters also pointed out that the signing of the agreement is a testament to both countries’ history of partnership.