Life With FATCA - Effective Since July 1, 2014 - 101 FATCA Agreements & Growing!

Since our post of Tuesday, July 1, 2014, 92 FATCA Information Sharing Agreements Start Today!
9 more countries have entered into FATCA agreements with the United States, bringing the total to 101!

Described by the US Government as a "major milestone" on the path to eradicating offshore tax evasion, but branded by its critics as "the worst law that most Americans have never heard of, the Foreign Account Tax Compliance Act (FATCA) went into force on July 1, 2014 after a long period of preparation by the Internal Revenue Service (IRS), foreign revenue agencies and foreign financial institutions (FFIs).

Even China, a country that resolutely refused to sign the agreement with the US,  has now signed up.

However, China’s IGA with the US is reciprocal. This means that China’s financial institutions will report all US accounts to the IRS, and US banks will report all Chinese held accounts to the Chinese government. This allows both countries to curb the prevalent problem of tax evasion. It should be noted that US and China are on a short list of countries that tax on a worldwide basis.

 

Do You Have Unreported Foreign Income?

Is Your Foreign Account in

Any of the Countries Mentioned Below?

Contact the Tax Lawyers at 

Marini & Associates, P.A.  

 

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See Below For Types of FATCA Agreements Signed

By Each Country and Links to the Actual Agreements.

The following jurisdictions are treated as having an intergovernmental agreement in effect (scroll down for a list of jurisdictions with agreements in substance):

Jurisdictions that have signed agreements:

 

Model 1 IGA

1. Australia (4-28-2014)
2. Belgium (4-23-2014)
3. British Virgin Islands (6-30-2014)
4. Canada (2-5-2014)
5. Cayman Islands (11-29-2013)
6. Costa Rica (11-26-2013)
7. Denmark (11-19-2012)
8. Estonia (4-11-2014)
9. Finland (3-5-2014)
10. France (11-14-2013)
11. Germany (5-31-2013)
12. Gibraltar (5-8-2014)
13. Guernsey (12-13-2013)
14. Hungary (2-4-2014)
15. Honduras (3-31-2014)
16. Ireland (1-23-2013)
17. Isle of Man (12-13-2013)
18. Israel (6-30-2014)
19. Italy (1-10-2014)
20. Jamaica (5-1-2014)
21. Jersey (12-13-2013)
22. Latvia (6-27-2014)
23. Liechtenstein (5-19-2014) 
24. Luxembourg (3-28-2014)
25. Malta (12-16-2013)
26. Mauritius (12-27-2013)
27. Mexico (4-9-2014)
28. Netherlands (12-18-2013)
29. New Zealand (6-12-2014)
30. Norway (4-15-2013)
31. South Africa (6-9-2014)
32. Spain (5-14-2013)
33. Slovenia (6-2-2014)
34. United Kingdom (9-12-2012)

Model 2 IGA

35. Austria (4-29-2014)
36. Bermuda (12-19-2013)
37. Chile (3-5-2014)
38. Japan (6-11-2013)
39. Switzerland (2-14-2013)
    

Jurisdictions that have reached agreements in substance and have consented to being included on this list (beginning on the date indicated in parenthesis):

Model 1 IGA

40. Algeria (6-30-2014)
41. Anguilla (6-30-2014)
42. Antigua and Barbuda (6-3-2014)
43. Azerbaijan (5-16-2014)
44. Bahamas (4-17-2014)
45. Bahrain (6-30-2014)
46. Barbados (5-27-2014)
47. Belarus (6-6-2014)
48. Brazil (4-2-2014)
49. Bulgaria (4-23-2014)
50. Cabo Verde (6-30-2014)
51. China (6-26-2014)
52. Colombia (4-23-2014)
53. Croatia (4-2-2014)
54. Curaçao (4-30-2014)
55. Czech Republic (4-2-2014)
56. Cyprus (4-22-2014)
57. Dominica (6-19-2014)
58. Dominican Republic (6-30-2014)
59. Georgia (6-12-201)
60. Greenland (6-29-2014)
61. Grenada (6-16-2014)
62. Guyana (6-24-2014)
63. Haiti (6-30-2014)
64. India (4-11-2014)
65. Indonesia (5-4-2014)
66. Kosovo (4-2-2014)
67. Kuwait (5-1-2014)
68. Malaysia (6-30-2014)
69. Montenegro (6-30-2014)
70. Lithuania (4-2-2014)
71. Panama (5-1-2014)
72. Peru (5-1-2014)
73. Poland (4-2-2014)
74. Portugal (4-2-2014)
75. Qatar (4-2-2014)
76. Romania (4-2-2014)
77. St. Kitts and Nevis (6-4-2014)
78. St. Lucia (6-12-2014)
79. St. Vincent and the Grenadines (6-2-2014)
80. Saudi Arabia (6-24-2014)
81. Serbia (6-30-2014)
82. Seychelles (5-28-2014)
83. Singapore (5-5-2014)
84. Slovak Republic (4-11-2014)
85. South Korea (4-2-2014)
86. Sweden (4-24-2014)
87. Thailand (6-24-2014)
88. Turkey (6-3-2014)
89. Turkmenistan (6-3-2014)
90. Turks and Caicos Islands (5-12-2014)
91. Ukraine (6-26-2014)
92. United Arab Emirates (5-21-2014)
93. Uzbekistan (6-30-2014)

Model 2 IGA

94. Armenia (5-8-2014)
95. Hong Kong (5-9-2014)
96. Iraq (6-30-2014)
97. Nicaragua (6-30-2014)
98. Moldova (6-30-2014)
99. Paraguay (6-6-2014)
100. San Marino (6-30-2014)
101. Taiwan (6-23-2014)*

The US - China IGA

           

July 18 2014

The US government has signed a Foreign Account Tax Compliance Agreement (FATCA) with almost 100 jurisdictions around the world. FATCA, which went into the effect on July 1, 2014, requires that all worldwide banking and financial institutions report US account holders with account balances of $10,000 or more to the United States Internal Revenue Service (IRS) in an effort to battle international tax evasion.  A full list of countries signed up for FATCA can be viewed here. To learn more about FATCA, view our previous blog Here.


Russia was in agreement talks with the US to sign an amended Intergovernmental Agreement (IGA). They signed the agreement just days before FATCA went into effect.


Interestingly, the expected reciprocity between the two countries did not happen.  Russian banks and financial institutions are required to report all US accounts holding $10,000 or more to the US, but the US does not have the same obligation to report Russian bank accounts in US banks to the Russian government.




In addition to PRC residents, the new Foreign Asset Reporting Requirements will also apply to the following groups:


PRC citizens who have been absent from the country for less than a year.
Non-residents who have had economic transactions within the PRC.
Corporations that are registered in the PRC
Branch offices of foreign institutions
Individuals who reside in the PRC for more than a year

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