The Isle of Man is to enter a tax information sharing agreement with the UK similar to the Fatca rules introduced by the US.
Both governments will adopt new reciprocal tax information sharing arrangements, under which they will automatically exchange information on tax residents on annually.
The approach will follow closely the agreement between the UK and the US and will follow the same timetable as the agreement between the US and Isle of Man.
Fatca regulation demands all financial organisations and their clients, whether active in the US or not, must prove they have no form of tax liability to the US.
Isle of Man chief minister Allan Bell said: ‘The Isle of Man has achieved global recognition for its proven record of compliance with current international standards of tax co-operation, with the OECD reporting to the G20 last year that the island was one of only a few jurisdictions with all the elements of effective tax information exchange in place.'
The Isle of Man already shares tax information automatically under the European Union savings directive and has recently announced that it will do so on a wider basis with the US.