FATCA – Which Countries Are In Or Out?

FATCA – Which Countries Are In Or Out?

If you are an American expat and looking for somewhere out of reach of the Internal Revenue Service (IRS) and Foreign Account Tax Compliance Act (FATCA)A, then the choice of destinations is shrinking.

So many nations are queuing to sign up to FATCA, the US Treasury agreed a six-month delay in implementing the law from January 1, 2014 until July 1, 2014 to allow the paperwork to catch-up.

FATCA – Country list

Here are three lists of countries that have signed FATCA treaties or are in the throes of discussing the finer details with the US:

Signed

UK

France

Germany

Italy

Spain

Japan

Switzerland

Canada

Denmark

Finland

Guernsey

Ireland

Isle of Man

Jersey

Mexico

The Netherlands

Norway

 

In Active Dialogue

Argentina

Australia

Austria

Belgium

The Cayman Islands

Cyprus

Estonia

Hungary

Israel

Liechtenstein

Malaysia

Malta

New Zealand

Portugal

Slovak Republic

Singapore

South Korea

Sweden.

Discussing options for intergovernmental co-operation

Barbados

Bermuda

Brazil

British Virgin Islands

Chile

The Czech Republic

Gibraltar

India

Isle of Man

Jamaica

Lebanon

Luxembourg

Qatar

Romania

Russia

Seychelles

Saint Maarten

Slovenia

South Africa

Taiwan

The Philippines

United Arab Emirates

The lists come from government sources and statements – but may not be a complete list of all nations in the FATCA network, while some may move up the lists as negotiations progress.

FATCA explained

FATCA requires foreign financial institutions and US taxpayers with overseas holdings valued at $50,000 or more to report the details to the IRS.

To reciprocate, US financial institutions will send details of other nationals with accounts in the States to their respective governments.

In effect, tax rules have not changed – governments are just tightening up the loose ends to make sure taxpayers who have failed to declare income or capital gains report the details to their tax authority.

FATCA is a carrot and stick legislation for foreign financial institutions, like banks and investment funds, that penalises them with a US withholding tax on 30% of all financial transactions taking place in the States if they fail to comply with FATCA rules.

Despite opposition in Congress and from US expats, FATCA seems destined to come into force in most of the world’s major financial centres.

The big doubt is whether China will join the network. The nation has little to gain, as the government does not tax the overseas assets or incomes of nationals.

The holes in the FATCA map of the world are in Asia, Africa and Latin America.

FATCA – Which Countries Are In Or Out? 5.00/5 (100.00%) 1 vote

FATCA – Which Countries Are In Or Out?

Get Advice

When it comes to your financial future, receiving the correct advice is of paramount importance. Please click here to connect with an independent financial advisor for expert, whole of the market advice today.
  • AtticusinCanada

    Canada has not signed and has a lot of issues with FATCA. Most Canadians object to the U.S. exporting its laws over the border especially since FATCA violates Canada’s Charter of Rights and Freedoms. Even if they DO sign when the rest of the general public here finds out what FATCA really is and what it will really do to millions of people here, there will be a very big problem with law suits ensuing very quickly. The first time a bank asks any Canadian “where were you born” or alters services or discloses information based on place of birth that bank is then in violation of Canadian laws so Canada is going to have a very big problem on its hands if the government is finally bullied into going along with this by the U.S. After all it is a U.S. law, not a Canadian one and despite what the U.S. thinks it cannot just make a law then tell the rest of the world to follow it or else. On paper this is what they have done disrespecting sovereignty everywhere. Most people don’t know about the effect of that yet but, they will and when they do, this is going to cause nothing but, trouble.

  • SeniorResearcher

    Lisa Smith ….. you are an IDIOT !!!!!

  • Angel

    This has been a very useful information. Thank you! :)