2017-01-09
Enforcement of the Foreign Account Tax Compliance Act
Taiwan and the U.S. entered into the Foreign Account Tax Compliance Act (FATCA) on December 22, 2016, which will become effective in 2017 at the earliest.
Under FATCA, U.S. citizens, people with U.S. personal accounts with deposits of more than USD 50,000, and corporations with U.S. corporate accounts with deposits of more than USD 250,000 must report said accounts/amounts to the U.S.
Persons who meet any one of the following conditions might be deemed a “U.S. client” by a Taiwan financial institution, which in turn will provide the U.S. client’s deposit information to the U.S.: (1) proof of U.S. citizenship, (2) having a U.S. birth place, (3) having a U.S. mailing address, (4) having a U.S. phone number, (5) having a PO Box address, (6) transmitting money to a U.S. account, and (7) the agent of the principal has a U.S. address.
If a client refuses to answer whether he/she is U.S. client, the client will be deemed an “uncooperative client”. In such case, the financial institution will report the uncooperative client to the Financial Supervisory Commission, which will then report the individual to the U.S.
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