Taiwan may be added to FATCA list in June: FSC
May 10, 2014, 12:00 am TWN
TAIPEI--The United States is expected to include Taiwan by the end of June on its list of countries considered to have a valid Foreign Account Tax Compliance Act (FATCA) intergovernmental agreement in force, the Financial Supervisory Commission (FSC) said Friday.
FATCA, which took effect in the U.S. Jan. 1, 2013, is aimed at reducing overseas tax evasion and targets U.S. taxpayers with more than US$50,000 of undeclared earnings from offshore bank accounts and investments.
From July 1 this year, foreign financial institutions are required to report to the U.S. Internal Revenue Service information about financial accounts held by U.S. taxpayers or foreign entities in which U.S. taxpayers hold a substantial ownership interest.
Foreign financial institutions that fail to comply with FATCA face a 30 percent withholding tax levied on their U.S. transactions.