February 8, 2017
Ambassador Marie Yovanovitch and Ukrainian Finance Minister Oleksandr Danyliuk signed an Intergovernmental Agreement (IGA) yesterday to implement provisions of the Foreign Account Tax Compliance Act (FATCA) and to promote transparency between the two nations on tax matters. The agreement underscores our continued cooperation and strong bilateral relationship with Ukraine as well as growing international cooperation to curb offshore tax evasion.
Ambassador Yovanovitch stated, “The United States and Ukraine have developed a very strong partnership on tax administration issues and I am pleased that our work on FATCA will further enhance our efforts in this sphere. Today’s signing marks a significant step forward in our collaborative efforts to combat tax evasion – an objective that mutually benefits our two countries. We look forward to full implementation of this agreement, which will better enable us to detect, deter, and discourage tax abuses through increased transparency and enhanced reporting.”
FATCA will enable Ukrainian banks to share reporting on financial accounts maintained by U.S. citizens with the U.S. Internal Revenue Service (IRS). The United States enacted FATCA in 2010 to combat offshore tax evasion by encouraging transparency and obtaining information on accounts held by U.S. taxpayers in other countries.