Name: FATCA explained: The new tax law for US citizens abroad
Uploaded: 2017-11-02T03:14:37.000Z
Duration: 2 min 53 s
Description: Thousands of YouTube videos with English-Chinese subtitles! Now you can learn to understand native speakers, expand your vocabulary, and improve your pronunciation...

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FATCA is actually a US law and means "Foreign Account Tax Compliance Act."

It's really not as complicated as it seems.

Basically just like many other countries, the USA is dealing with a huge budget deficit.

And what are the possible sources of a income for a country like this?

In the past, the USA didn't take full advantage of this possibility.

After all, every US citizen who lives abroad actually has to pay taxes in the USA,

This means the United States are losing a lot of money.

That's why the US government passed the new FATCA law.

are now supposed to identify which of their customers are US citizens,

private customers as well as corporate customers.

Even all shareholders who are US citizens

and hold more than 25 percent of a company are affected.

The banks then send this select information about their American customers to the

in compliance with standards set forth in German data protection laws.

This central federal office collects the information from every bank,

pulls it and sends this on to the IRS, the American tax authority.

Why should people in Germany care about the tax laws in the USA?

Well, we could if there wasn't this little addendum to the FATCA law.

Every bank that does not cooperate will automatically be charged

a 30 percent penalty on all yields in the USA.

but also the bank's customers, the Germans as well as the Americans.

A regular transfer from your great aunt in California, yields on Apple shares

or interest on US government bonds, only seventy percent would ever be credited.

The HypoVereinsbank is avoiding these penalties for the bank and its customers

In this way, we get 100 percent of our US yields

and the USA is able to take in tax income for its citizens abroad.

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FATCA explained: The new tax law for US citizens abroad

basically

sensation

advantage

identify