US, Turkmenistan ink deal to implement FATCA provisions

US Ambassador Allan Mustard and Turkmenistan’s Minister of Finance Gochmyrat Myradov signed an Intergovernmental Agreement (IGA) to implement the provisions of the Foreign Account Tax Compliance Act (FATCA), said the US Embassy in Ashgabat, AzerNews reports.

The agreement underscores growing international cooperation to curb offshore tax evasion and marks a step forward in building a stronger, more stable and responsible global financial system.

Ambassador Mustard stated, “Today’s signing marks a significant step forward in our efforts to work collaboratively to combat offshore tax evasion – an objective that mutually benefits our two countries. By working together to detect, deter, and discourage tax abuses through increased transparency and enhanced reporting, we can help to build a stronger, more stable, and more accountable global financial system.”

The automatic exchange of financial account information for tax purposes has become the global standard in the effort to curtail offshore tax evasion. The United States enacted FATCA in 2010 to combat offshore tax evasion by encouraging transparency and information exchanges on financial accounts held by U.S. taxpayers in other jurisdictions. The United States has intergovernmental agreements to implement FATCA with more than 113 jurisdictions.