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    US Tax Inspection Is Getting Stricter: Overseas Assets Must Exceed 50 Thousand.

    2010/11/2 9:50:00 44

    Tax Dividend Investment

     

    In recent one or two years, the US government has tracked down.

    Taxpayer

    Overseas accounts, many fat sheep have been caught, and efforts have been made after tasting the sweetness. In March 18th this year, President Barack Obama signed the Hiring Incentives to Restore Employment (HIRE). The tax law contained in it was interpreted by some as "allowing overseas financial institutions to act as spies for the US government", which will make it increasingly hard for taxpayers who want to evade reporting overseas assets.


    The tax law "Foreign Account Tax Compliance Act" (hereinafter referred to as FATCA) stipulates that next year, if the taxpayer's overseas accounts and assets exceed US $50 thousand before the deadline for filing tax returns in April 15th, it is necessary to join the tax table together.

    declare


    The law also requires overseas financial institutions investing in the us to sign an agreement with the Ministry of Finance and agree to provide overseas US customer information, including name, social security number or taxpayer identification number.

    If these institutions have not yet signed an agreement as of 2013, they have

    Investment

    A business firm has an obligation to withhold 30% of its income, such as interest, dividends, etc., when it is invested in the US.


    Accountant Shi Qixiang pointed out that the new tax law and the Foreign Bank &Financial Account Report Act (referred to as FBAR), which came into effect in 1970s, are different tax laws.

    The taxpayer will not quote overseas assets by citing FATCA before April 15th, that is, it does not need to declare to the Ministry of finance more than 10 thousand yuan overseas according to FBAR and the TDF90-22.1 form before June 30th.

    Finance

    Gross value.


    Although FATCA stipulates that assets to be declared are assets owned after March 18th of this year, they cover a wider range than FBAR, but also include hedge funds and private equity funds invested by taxpayers in foreign companies, but not real estate.

    If it is not declared, the minimum penalty is 10 thousand yuan and the maximum amount is 50 thousand yuan.


    Shi Qixiang said that although FATCA has not been widely discussed, it has no effect on taxpayers who have overseas accounts and assets.

    In the future, taxpayers will find more information to be disclosed to the IRS, and the fines they face will also increase.


    The accountant Li Xinzhong said the overseas account, which asked taxpayers to declare themselves by the end of October, mainly aimed at the financial accounts owned by overseas banks or securities companies. As long as the maximum value of the previous year was over 10 thousand yuan, it was necessary to fill in the TDF90-22.1 form.

    The new tax law extends the scope to overseas businesses with family businesses, but non-listed company shares.

    For those who own property in the form of a company rather than an individual, it is also included.


    The law will undoubtedly pfer responsibility for overseas account checks to global financial institutions that invest in the US. These institutions may not have branches in the United States, so long as they buy bonds or listed stocks in the United States.

    It means that foreign financial institutions that purchase Microsoft stocks in the United States will not be able to sign a contract with the US Treasury Department as of 2013 and agree to report the accounts of American customers voluntarily. Microsoft will be liable to withhold 30% of the dividend payable.


    Li Xinzhong believes that unless it has been disposed of overseas assets, honest reporting is still the best policy, because declarations do not represent taxes, and only three years retroactive.

    No declaration can be made to the IRS.

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