What are inter-governmental agreements?

​What is an IGA?

Inter-governmental agreements (IGAs) aim to improve international tax compliance and are based on domestic reporting and the automatic exchange of information.

IGAs establish legal frameworks for the exchange of information between financial institutions and tax authorities in other jurisdictions.

It is generally accepted that there are real benefits for financial institutions in reporting through an IGA, rather than reporting directly to a tax authority in another jurisdiction.

The United States of America - Foreign Account Tax Compliance Act (FATCA)

The USA's Foreign Account Tax Compliance Act (FATCA) requires foreign financial institutions to report to the US Internal Revenue Service (IRS) information about financial accounts held by US taxpayers, or held by foreign entities in which US taxpayers hold a substantial interest.

An inter-governmental agreement is being negotiated between Jersey and the US to facilitate the reporting of relevant financial information held in Jersey.

The United Kingdom

An arrangement, based on the USA's FATCA, is being negotiated between Jersey and the UK whereby relevant financial information held in Jersey by a person or entity who is resident in the UK for tax purposes will be reported to HM Revenue and Customs (HMRC).

When is it proposed that these IGAs will come into effect?

The following dates are currently proposed for their implementation: