The document was signed by charge d’affaires ad interim Andre Goodfriend of the US Embassy and the ministry’s state secretary of taxation and finances Gábor Orbán. Enacted by the US Congress in 2010, FATCA targets tax evasion by US taxpayers who use foreign financial accounts, the statement said.

The agreement now signed provides the necessary legal framework for effective implementation of FATCA by financial institutions, it added. “Today’s signing marks a significant step forward in our countries’ efforts to work collaboratively to combat offshore tax evasion - an objective that mutually benefits our two countries.

We appreciate Hungary’s commitment to enhancing our bilateral cooperation to improve international tax compliance,” Goodfriend said. Gábor Orbán said “Hungary is the 21st country in the world and the first one from the region to sign this agreement.

The agreement provides a solution for our financial markets to comply with the FATCA regime and helps us to combat tax avoidance through its provisions on reciprocal information exchange.”

Source www.hungarymatters.hu

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