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mesquite

Thai Banks And The Foreign Account Tax Compliance Act (Facta)

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As I understand it, effective June 30 of next year, all non-US banks dealing with the US must be on board with FACTA. If not, the US will withhold 30% of any transfer from the US to that bank. I have a bank in Europe that complies with FACTA and I had to fill out some US IRS forms as part of this.

I have received no information about FACTA from my Thai banks. Does anyone know if they are on board with this?

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The latest info I have been able to find goes back to April this year in an article in the Nation:

http://www.nationmultimedia.com/opinion/Thai-finance-faces-major-hurdles-uncertainty-ahead-30180121.html

"Few banks have dedicated adequate resources to the problem to-date. The Bank of Thailand is aware of this issue and has indicated that most Thai banks will have to comply with FATCA".

I don't think a lot of progress has been made so far. What I am doing is checking with the Thai branch of Citi in Bangkok to see if they will be complying. I would think they will be since they are a US-based bank. I have already set up an account with Citi in the US that can be linked to an account with Citi in Thailand.

BofA also has a branch in BKK.

If the Citi/BofA branches in Thailand are not going to comply be the June 2013 deadline, it's going to be messy, but I think they will get it sorted out.

The people that are really going to be in a world of hurt are the US Citizens who have not been reporting their foreign bank accounts and should have been. Eventually this FATCA law will flush them all out.

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I have a US brokerage account as my main reserve. I fill in a W8 for non taxable status.

If I want to send money to my BKK bank acct as a non-American will this affect me?

Thanks

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The people that are really going to be in a world of hurt are the US Citizens who have not been reporting their foreign bank accounts and should have been. Eventually this FATCA law will flush them all out.

I think that was the general idea. whistling.gif

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The people that are really going to be in a world of hurt are the US Citizens who have not been reporting their foreign bank accounts and should have been. Eventually this FATCA law will flush them all out.

I think that was the general idea. whistling.gif

Not sure about that - I read in another thread on the forum that a US person can't relinquish US citizenship by choice.

Claiming money from people who don't live in the US and don't have any economical ties to the US is just wrong.

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Claiming money from people who don't live in the US and don't have any economical ties to the US is just wrong.

Indeed. But since when did governments ever care about wrong and right?

And of course the US government isn't targeting foreign people here, it is targeting foreign banks. The account holders are merely casualties of war.

Presumably Uncle Sam finds it easier to get others to find out what his citizens are up to than to do it himself.

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Of course they are after people! Money launderers, terrorists, drug dealers, tax evaders, and otherwise totally innocent Americans who fail to file FBARs.

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If not, the US will withhold 30% of any transfer from the US to that bank

Naah. It would only be withholding on certain income, or proceeds from income-producing property, sent directly to one's foreign account. Wiring or ACHing money from your US account to your Thai account isn't subject to FACTA withholding.

And I'm sure all Thai banks will be on-board, as the reporting research requirement isn't too onerous. And, since the de minimis account value begins above $50,000, this narrows considerably how many accounts are subject to this scrutiny and reporting. They're also given a lot of leeway for existing accounts (no need to poll for a Yankee connection, for example). And new accounts may just require a questionaire to establish a US connection. So, yeah, the banks do have to put some resource into identifying a US connection -- and provide "due diligence" in their research and reporting. But, certainly not too difficult.

Now, if someone lies on the questionaire, not the bank's fault. And if someone refuses to answer the questionare (a "recalcitrant" in FATCA speak), the bank just doesn't open the account (or closes the existing one).

Anyway, hard to get too worked up about FATCA.

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The people that are really going to be in a world of hurt are the US Citizens who have not been reporting their foreign bank accounts and should have been. Eventually this FATCA law will flush them all out.

Not with the line drawn at $50,000 (an aggregate of all your accounts in the same bank). Yes, above this amount, the bank will need to report to the IRS your earnings. So, yeah, hard to evade taxes with your Thai bank sending in a 1099 (or equivalent). But for most of us with well-below $50k in our Thai bank, nothing will change.

I wonder if they'll raise the FBAR threshhold from $10k to $50K? Makes sense, right? Thus, don't expect any change.

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They're also given a lot of leeway for existing accounts (no need to poll for a Yankee connection, for example).

Would you clarify the above statement?

Tnx for your astute comments.

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whistling.gif Well we have...or at least had....one or two farangs working for Bangkok bank that often read this forum topic as I recall.

They were from the U.K. as I recall.

Maybe we can get a comment from at least one of them for U.S. Bangkok Bank account holders that are retired in Bangkok and maintain a Thai bank account as required by Thai immigration?

How will this law affect U.S. retirees in Bangkok?

I already file reports on my 800K Bangkok Bank retirement account so I'm not to worried about that part.

But is Bangkok Bank aware of these new U.S. government reporting requirements?

Will Bangkok Bank be compliant by June 2913?

whistling.gif

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One thing I'm confused about. For those of us U.S. nationals with EXISTING Thai bank accounts, are we supposed to provide the Thai banks with more information about ourselves so they can comply with this or should they be asking us to come in about that? I think many of us including me are concerned that some of our accounts will just be closed without warning.

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The people that are really going to be in a world of hurt are the US Citizens who have not been reporting their foreign bank accounts and should have been. Eventually this FATCA law will flush them all out.

I think that was the general idea. whistling.gif

Not sure about that - I read in another thread on the forum that a US person can't relinquish US citizenship by choice.

Claiming money from people who don't live in the US and don't have any economical ties to the US is just wrong.

just for the record: a U.S. person is not a U.S. citizen. being resident in the U.S. can make even a tourist liable to pay income tax and thus "converting" him/her into a U.S. person. income originating in the U.S. can be taxed in various specific cases depending on the source and whether the taxed person is resident in a jurisdiction which has not signed a double tax agreement with the U.S. the same applies to offshore corporations.

the OP's claim that a witholding tax can and will be levied on any transfer is incorrect.

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BANGKOK 27 July 2017 23:44
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