I know Taiwanese banks are obliged to report to the US but do US banks also report to Taiwan?
Iām not sure but what do you think?
FATCA only works because those banks hold assets in the US (which bank doesnāt) that the US can use as a bargaining chip to force compliance. No it doesnāt work the other way unless FATCA mandates it.
No. They are not.
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Nonsense.
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Thereās a reason US is actually one of the best places to hide money. FATCA for thee and no CRS for me.
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USA banks are required to report CRS information to Taiwan if that person is not a US resident/person and is a Taiwan resident/citizen.
USA does not require Taiwan banks to report CRS to USA, because USA is not part of CRS. They use FATCA instead. FATCA is only for US persons and Taiwan is not part of it.
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Can you please provide a source for this
Hereās HSBC USA. When I converted from US resident to non-resident, I was asked to fill in CRS listing Taiwan as my tax country: https://www.crs.hsbc.com/
HSBC US is an exception. Not the rule.
āAlthough the US is not participating, there may be entities that are treated as participating in a jurisdiction that participates in OECD.ā HSBC would definitely be one of those.
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I think FATCA and CRS are both optional when you look at it that way. A Taiwan bank isnāt going to get fined by Taiwan if they donāt participate in FATCA, but they may get blacklisted from using USD by the US government. Likewise a US bank isnāt going to get fined by USA for not following CRS, but Taiwan can put pressure on that bank in other ways.
I cannot find the doc right now, but there are a few local Taiwan banks not taking part in FATCA when it was signed. They likely donāt transact with USD.
Of course the US tends to be a bully and they can add pressure in other ways, such as telling Taiwan government they will blacklist the whole country from transacting USD if their major banks arenāt compliant
They are not optional. Banks can and do get fined.
What pressure is Taiwan giving? Show me a source
Banks with āsignificantā operations in CRS jurisdictions have to follow CRS in America and are held to the same standards. Such as HSBC which is headquartered in Londonā¦
Because there is no doc
Can you name these banks that donāt follow FATCA?
Can you provide a source where Taiwan fined a Taiwan bank for not following fatca?
The penalty according to fatca is the US will withhold 30% for that bankās USD transactions. Taiwan wonāt fine the bank. The bank also wouldnāt care if they donāt transact in USD.
Okay let me find it again after lunch.
So far the banks in Taiwan have actually been compliant to the best of my knowledge. In factā¦ some will tell Americans to F$%k off lol
Iād like to know which banks these are
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The fatca treaty that was signed a while back allowed for ānon participating FFIā in Taiwan. Thereās hundreds of banks here and some are not participating. Let me find that list. Also not all financial institutions are fully participating FFI (foreign financial institution). Thereās several types of non participant FFIs. Unfortunately for most Taiwan banks, they have branches in the US and would be required to participate. Same deal with HSBC having branches in CRS participant countries.
Here is a list I googled on my phone. But this one is for listing some FFI participating banks. Iām still at lunch. https://www.twsa.org.tw/I01/DOC/čåøę„FATCAčØ»åę å½¢ēµ±čØå½ę“č”Ø.pdf
Also as you can see in the doc, even the ones in there donāt all report. Some are merely participants but not reporting.
This one has some non participants: https://www.sitca.org.tw/OPF/K0000/files/CWeb/čåøęč³äæ”čØę„ččåøęč³é”§åę„_FATCAčØ»åę å½¢å ¬åē¶²ē«å½ę“č”Ø_ē·Øč£½ę„ę2014幓6ę16ę„.pdf
For example Mirae asset global investments. But this is an investment institution. Let me try find if thereās a bank.
What do you mean they are just āparticipating?ā lol
From what I understand it means they collect the info but donāt transmit it to US government. These lists of participants are usually inclusive lists, since the banks donāt list themselves if they are non compliant, but I remember in original treaty signing press release there were some banks not participating.
These arenāt exactly banks. Also the first one ęÆé ęäæ” on the list is strange as the English name is listed as reporting.
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You are confusing that with model 1 reporting
This site talks about the penalty for fatca non compliance: https://www.twrblog.com/2019/06/irs-to-launch-fatca-compliance-campaign-for-ffis/
āFFIs that fail to file the required form may result in the FFI losing its status as a participating FFI or Reporting Model 2 FFI. If an FFI loses its status and is treated as a nonparticipating FFI, it is subject to 30% withholding on payments of U.S. source FDAP income made to it.ā
So if someone were to open a bank today they could choose to be a non participant and be subject to that withholding on their USD. But itād be a bad business decision.
Model 2 would also report to IRS, but thereās different types of participants: https://www.irs.gov/businesses/corporations/fatca-governments
ā Model 2 IGA:
- The partner jurisdiction agrees to direct and enable all relevant FFIs located in the jurisdiction to report specified information about their U.S. accounts directly to the IRS.ā