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  • nomadicmadda
  • Hero of Waygookistan

    • 1585

    • July 01, 2014, 06:49:40 am
    • Seoul, formerly Boseong
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FATCA for Americans and effects on expats
« on: April 28, 2016, 06:48:30 pm »
So a friend sent me this Reddit post the other day, and I was wondering if anyone else had bene affected by this?  It looks like the USA and SK signed the agreement in 2015, so I'm hoping it isn't going to lead to further troubles in the future...

I've looked at investing in properly abroad in the past and was really discouraged by how much Uncle Sam likes to keep a finger (or entire hand) sunk into expat wallets.  It seems like they do everything possible to keep Americans in America and discourage life abroad...


Re: FATCA for Americans and effects on expats
« Reply #1 on: April 28, 2016, 08:09:10 pm »
Considering how much Americans hate taxes, you'd think we'd be the last country to tax expats, rather than one of the few that do.
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Re: FATCA for Americans and effects on expats
« Reply #2 on: April 28, 2016, 08:27:21 pm »
Marry a foreigner. Gift all your money to them. Protect your assets  :laugh: :laugh: :laugh:

Doesn't seem to have reached Korea, yet. Although I've read either here or on Daves that someone with a citibank account was called by their bank because their bank wanted to report them or something...

Hopefully things won't go the way of Europe where Americans are refused bank accounts but with the way Koreans dislike extra paper work it could happen. Maybe the military being here will protect Americans with bank accounts somewhat... 

« Last Edit: April 28, 2016, 08:29:24 pm by Teachersa »


  • nomadicmadda
  • Hero of Waygookistan

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    • Seoul, formerly Boseong
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Re: FATCA for Americans and effects on expats
« Reply #3 on: April 28, 2016, 09:10:41 pm »
Considering how much Americans hate taxes, you'd think we'd be the last country to tax expats, rather than one of the few that do.
The American people hate taxes.  The American government loves them. :undecided: :undecided: :undecided: :evil:

Maybe the military being here will protect Americans with bank accounts somewhat... 

Good point.  And it hasn't reached here yet?  Are you sure?  I came across this PDF that looks like it was done last year, and there are news articles worrying, "Oh, no, what will Korea do!" from 2014.

From this page:
Quote
June 12: The Treasury Department updated its FATCA webpage and reported the signing of an intergovernmental agreement (IGA) between the United States and South Korea.
The IGA with South Korea is listed as following the Model 1 IGA. The IGA was signed June 10, 2015.

Read text of the Model 1 IGA [PDF 286 KB] with South Korea.
« Last Edit: April 28, 2016, 09:13:18 pm by nomadicmadda »


  • Chester Jim
  • Hero of Waygookistan

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Re: FATCA for Americans and effects on expats
« Reply #4 on: April 28, 2016, 10:25:51 pm »
obama did this
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  • eastreef
  • Super Waygook

    • 272

    • November 02, 2009, 02:53:39 pm
    • 7 years at middle & high schools in Korea / Now a university in Thailand!
Re: FATCA for Americans and effects on expats
« Reply #5 on: April 29, 2016, 10:23:00 am »
FATCA is alive and well in Thailand.  I am now working for a school in Thailand and have firsthand experience with the very long arm of the U.S. government.  When I started working in Thailand I first went to the bank used by many of the people who work at the same school (including non-American farangs) to open an account that would also be used for direct deposit of my salary.  This bank turned me down because I was an American.  They said that they previously accepted Americans, but not now. 

I did find a bank that agreed to let me open an account.  The employee at this bank went to a file cabinet and came back with a “good old” American IRS form (in English) for me to write my social security number on and sign.  By signing I basically agreed to keep the feds informed of every Baht I earn or end up in the ADX in Colorado (lol).

In my opinion FATCA is much too far of a reach for the U.S. government, or for any government.  If the U.S. congress wants more tax revenue why don’t they take a look at themselves, and all the tax breaks they have given to some very wealthy special interest groups.  And people wonder why a candidate like Trump can gather suppporters.
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  • Teemowork
  • Expert Waygook

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    • September 13, 2010, 08:21:30 am
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Re: FATCA for Americans and effects on expats
« Reply #6 on: April 29, 2016, 11:48:52 am »
FATCA is alive and well in Thailand.  I am now working for a school in Thailand and have firsthand experience with the very long arm of the U.S. government.  When I started working in Thailand I first went to the bank used by many of the people who work at the same school (including non-American farangs) to open an account that would also be used for direct deposit of my salary.  This bank turned me down because I was an American.  They said that they previously accepted Americans, but not now. 

I did find a bank that agreed to let me open an account.  The employee at this bank went to a file cabinet and came back with a “good old” American IRS form (in English) for me to write my social security number on and sign.  By signing I basically agreed to keep the feds informed of every Baht I earn or end up in the ADX in Colorado (lol).

In my opinion FATCA is much too far of a reach for the U.S. government, or for any government.  If the U.S. congress wants more tax revenue why don’t they take a look at themselves, and all the tax breaks they have given to some very wealthy special interest groups.  And people wonder why a candidate like Trump can gather suppporters.

I think the reason is to keep a check on rich corporate people who abuse loopholes to avoid proper taxation.  I really doubt the government cares about the small chump change that foreign language teachers are making.  But, for other people who try to abuse the system and hide their money away (cough** cough** Panama Papers***), they would have more interests.

They just want to make sure that people aren't hiding certain income or earnings that are SUPPOSED to be taxed, but isn't.  But its not like you could make a law/policy that affects ONLY rich corporate people.  It has to be very general, and so, it coincidentally applies to any American working abroad as well.

I don't know if its really that big a deal.  If you worked in America solely, the government is suppose to know all your earnings to make sure you are paying the proper taxes.  The whole idea is: the government wants to know how much you made as a citizen of their country (and how you made it), so that you can pay the proper taxes and also get the proper deductions if it applies.  And it's not like we are getting taxed twice anyways.

I don't really consider this a serious "outreach" of powers.  After all, a government is suppose to tax its citizens and keep good accounting books.  NOT keeping track of this information just seems like it opens HUGE risks for loophole abuses and could potentially cost the country billions of dollars that the average John Doe will have to pay for through higher taxes.

If you are the average John Doe and not super rich, absolutely nothing happens to you.  But if you are some super rich CEO with numerous bank accounts overseas, well, then you might be forced to pay your fair share of taxes "as a citizen" of your country that you might have been purposely hiding away.
« Last Edit: April 29, 2016, 11:53:32 am by hien_t »