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

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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?

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

  1. Austria (4-29-2014)
  2. Bermuda (12-19-2013)
  3. Chile (3-5-2014)
  4. Japan (6-11-2013)
  5. 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

  1. Algeria (6-30-2014)
  2. Anguilla (6-30-2014)
  3. Antigua and Barbuda (6-3-2014)
  4. Azerbaijan (5-16-2014)
  5. Bahamas (4-17-2014)
  6. Bahrain (6-30-2014)
  7. Barbados (5-27-2014)
  8. Belarus (6-6-2014)
  9. Brazil (4-2-2014)
  10. Bulgaria (4-23-2014)
  11. Cabo Verde (6-30-2014)
  12. China (6-26-2014)
  13. Colombia (4-23-2014)
  14. Croatia (4-2-2014)
  15. Curaçao (4-30-2014)
  16. Czech Republic (4-2-2014)
  17. Cyprus (4-22-2014)
  18. Dominica (6-19-2014)
  19. Dominican Republic (6-30-2014)
  20. Georgia (6-12-201)
  21. Greenland (6-29-2014)
  22. Grenada (6-16-2014)
  23. Guyana (6-24-2014)
  24. Haiti (6-30-2014)
  25. India (4-11-2014)
  26. Indonesia (5-4-2014)
  27. Kosovo (4-2-2014)
  28. Kuwait (5-1-2014)
  29. Malaysia (6-30-2014)
  30. Montenegro (6-30-2014)
  31. Lithuania (4-2-2014)
  32. Panama (5-1-2014)
  33. Peru (5-1-2014)
  34. Poland (4-2-2014)
  35. Portugal (4-2-2014)
  36. Qatar (4-2-2014)
  37. Romania (4-2-2014)
  38. St. Kitts and Nevis (6-4-2014)
  39. St. Lucia (6-12-2014)
  40. St. Vincent and the Grenadines (6-2-2014)
  41. Saudi Arabia (6-24-2014)
  42. Serbia (6-30-2014)
  43. Seychelles (5-28-2014)
  44. Singapore (5-5-2014)
  45. Slovak Republic (4-11-2014)
  46. South Korea (4-2-2014)
  47. Sweden (4-24-2014)
  48. Thailand (6-24-2014)
  49. Turkey (6-3-2014)
  50. Turkmenistan (6-3-2014)
  51. Turks and Caicos Islands (5-12-2014)
  52. Ukraine (6-26-2014)
  53. United Arab Emirates (5-21-2014)
  54. Uzbekistan (6-30-2014)

Model 2 IGA

  1. Armenia (5-8-2014)
  2. Hong Kong (5-9-2014)
  3. Iraq (6-30-2014)
  4. Nicaragua (6-30-2014)
  5. Moldova (6-30-2014)
  6. Paraguay (6-6-2014)
  7. San Marino (6-30-2014)
  8. Taiwan (6-23-2014)*

 

Tony Beecher

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2 comments on “Life With FATCA – Effective Since July 1, 2014 – 101 FATCA Agreements & Growing!”

  • Guest

    “It should be noted that US and China are on a short list of countries that tax on a worldwide basis.”

    My understanding is that only the USA and Eritrea have citizenship-based taxation (CBT). Please provide evidence to support your claim that China does as well.

  • Guest

    Also note that if a country requires its resident(!) citizens to pay taxes on income outside the country, that is not considered CBT or taxation on a worldwide basis. Almost every country does this.

    CBT or taxation on a worldwide basis would be, for example, if a Chinese citizen living in the USA with accounts in the USA and paying taxes in the USA also needed to pay taxes on that US source income in China. That is not the case. On the other hand, a US citizen living in China with accounts in China and paying taxes in China does indeed need to pay US taxes on that Chinese source income in the USA. That is CBT, and is only practised by the USA and Eritrea.

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