Global Forum on Transparency and Exchange of Information for Tax Purposes: Federated States of Micronesia 2019 (Second Round)

Peer Review Report on the Exchange of Information on Request

This report contains the 2019 Peer Review Report on the Exchange of Information on Request of Federated States of Micronesia.

Published on July 30, 2019

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Summary

The Global Forum rated Federated States of Micronesia (FSM) overall Largely Compliant with the international standard on transparency and exchange of information upon request. The FSM’s legal and regulatory framework is generally in place to provide for effective transparency and exchange of information. The relevant rules also appear to be adequately implemented overall. However, this remains to be confirmed in practice. This can be attributed to the fact that the FSM does not have any EOI instrument providing for exchange of tax information with other jurisdictions despite its efforts to conclude one, and thus the FSM has never been asked to exchange information with foreign jurisdictions. In addition, legal requirements containing crucial rules concerning the availability of ownership and accounting information are recent and remain to be fully tested.

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