Estonia, EU – Baltic States, Financial Services, Legislation, Taxation, USA

As the result of the agreement, the possibility for Estonian and U.S. tax residents to evade tax payment decreases and Estonian financial institutions get the necessary security for operating at the market, finance ministry announced.

The basis for the agreement is the U.S. Foreign Account Tax Compliance Act (FATCA), which aims to collect information about persons obliged to pay tax in the USA, to prevent tax evasion.

The USA concludes bilateral agreements with states, on the basis of which, tax administrators exchange information once a year on accounts of persons obliged to pay tax in financial institutions under another jurisdiction.

The agreement will be sent to the Riigikogu to ratify.

All EU member states plan to conclude the agreement.