Non-profit organisations will get a break from Fatca-type requirements of the UK, the Finance Ministry said last night.

Bermuda’s compliance with Fatca (the US Foreign Account Tax Compliance Act) requires financial institutions to report on the holdings of US citizens.

An intergovernmental agreement (IGA) with the UK imposes similar requirements for UK citizens.

In a statement last night, Finance Minister Bob Richards said the UK has agreed to the inclusion of a Limited Capacity Exempt Beneficial Owner Category under the IGA with Bermuda.

“The effect of this amendment will mean that there will be no obligation for Bermuda financial institutions to report on the controlling persons of a not-for-profit, non-financial foreign entity that meet the required criteria under this category,” the Finance Ministry stated.

This will allow non-profit entities to be treated the same way under UK Fatca as they are presently under US Fatca.

Minister Richards said this information would “bring clarity and alignment to international business stakeholders in respect of the treatment of not-for-profit entities”.