Thai govt approves tax-law negotiations with US

[TallGuyJohninBKK]

Jing, as I mentioned above, I haven't heard that's there's been any global agreement between the U.S. and Thailand on FATCA related tax issues... (although that certainly doesn't mean there hasn't been). I'm guessing the Thai Finance Ministry has been a bit preoccupied lately, what with old rice and protesters and such.

At any rate, I haven't heard peepers from any of the other Thai banks where I hold accounts. And I certainly haven't seen anything similar posted here by other members as yet. So I'm guessing this is Standard Chartered acting on its own, probably because it has more of a U.S. banking presence (and thus is more under the thumb of U.S. authorities) than most or all of the other "Thai" banks.

FWIW, at least thus far, no one at Standard Chartered has said anything to me about any potential account closings. And as I mentioned above, the CSR supervisor I spoke with on the phone Friday said that, for its existing U.S. customers, as long as we return the requested forms, everything should continue forward as normal. I guess, I'll find out more next week.

[Jingthing]

Yeah, OK, I see your point.

I smell problems coming though and I think when they do, there are going to be different stories with different banks.

Assuming this is coming, I think it would helpful to members here to being able to group like bank with like bank in searching for and posting information.

I am also wondering, perhaps prematurely, whether we should be PROACTIVELY approaching the banks with requests about complying.

The thing is if these Thai banks don't comply, it seems to me they then will be kicking out American customers. My understanding is they MUST comply, yes, from the U.S. government POV (the big bullies).

So don't we WANT them to comply for our own self interest? Given these U.S. laws have passed, like them or not (not!).

Edited March 1, 2014 by Jingthing

[sirineou]

I don't think Thai banks will have a problem reporting on American accounts. Any competent programer should have no problem writing a subroutine in the bank's accounting software, red-flagging american accounts at a certain amount generating a report and automatically forwarding it to the appropriate agency.

[hawker9000]

'Seems like this should be firing up in banks in other places, not just Thailand.

[TallGuyJohninBKK]

FATCA, and its impact on Americans who do banking outside the U.S., is not just an issue in Thailand, it's an issue around the world.

Some foreign countries have already reached agreements with the U.S. on sharing of tax info re accountholders and such. A lot have not. The original news reports about potential account closures, if I recall, came out of Europe and European banks rather than Asia. It's an issue there as well U.S. expats residing there.

Edited March 2, 2014 by TallGuyJohninBKK

[puck2]

I don't think Thai banks will have a problem reporting on American accounts. Any competent programer should have no problem writing a subroutine in the bank's accounting software, red-flagging american accounts at a certain amount generating a report and automatically forwarding it to the appropriate agency.

If you (would) know the details of FATCA you would never again repeat this sentence. The concerned banks and FIs will need a lot of costly experts to fulfill the demands of a different state. The huge bureaucratic government isn't that easy. I'm trying to read and understand the US-German agreement in German language - already 67 pages, without the supplementary ones -.

To leyy taxes is a sovereign function of each state. Now there is a start of breaking this rule. The banks and financial institutions are getting slaves of the concerned capitalistic foreign states, US, GB, Germany etc. . And believe me I'm not a communist. You can answer, yes they must not play with them, up tp them. But there is the stroke of a hammer. Not playing with those greedy states means banks and FIs will be fined or excluded from trading in those states. This isn't free trade, this is (tax) exploitation - invented and performed by the promised land and its buttlers.

[TallGuyJohninBKK]

Just an interesting tidbit on the FATCA info that Standard Chartered requested of Americans back in February and I provided to them in early March (and then never heard anything further from them about it since then).

Today, I had to visit the Standard Chartered main Sathorn branch for some business, and ended up talking with a bank officer there. During our chat, she called up my account profile on her PC screen and I saw on her screen menu she had a menu item at the bottom titled "FATCA Data." And when she selected it, it called up all the various FATCA related info that I had previously submitted.

She confirmed that the written paperwork I provided to them back in March had been accepted and everything was in order as far as the bank was concerned. Nothing further to do, which was good to hear.

Still haven't had any similar contact from any of the other Thai banks.

I think I've been "FATCA'd"!!!!

Got a letter in the mail the other day from Standard Chartered informing me that I, as a U.S. citizen, would be required, "in order to comply with the laws and regulations of the United States," to fill out and submit to the bank before the end of March:

--an IRS W9 form including my SSN

--an account opening form supplement asking my country of residence, country of birth, U.S. citizenship status and other details.

--a signed copy of my passport

The bank letter also included revised terms and conditions for my account that, after reading all the small print, basically says the bank has the right to share my account details with domestic or overseas authorities, and also that the bank has the right to pay out from my account, or withhold funds from my account "where required by law or order or agreement with regulators or authorities in any jurisdiction, including the domestic or overseas tax authorities."

This is the first time I've received any such letter from any of the Thai banks where I hold accounts, and I haven't seen any mention here on ThaiVisa of others having received such letters as yet.

Just to doublecheck, I called Standard Chartered customer service this afternoon, and got an initial CSR who was no help and relatively clueless. So I asked to speak with her supervisor, and simply wanted to ask a basic question: once I fill out and submit the various forms, is anything going to change about the status of my account with the bank. In short, the supervisor said, NO, as an existing account holder, nothing would change.

However, the supervisor added that if I was going to open a NEW account with the bank, there probably would be more paperwork to complete than before. And, on the account opening form supplement that the bank required, on the reverse, there's section where it says if you've checked some U.S. connection, check with the branch about what banking services can be offered. But I didn't try to get a rundown on that issue.

In talking further with the supervisor, it sounded like she'd handled a fair number of calls from other Americans who had received the bank's letter lately. And from the way she described it, it sounded like a lot of the callers weren't too happy and/or were upset at Standard Chartered over all this. I politely replied to her, that I understood it wasn't the bank's doing but rather was a law and policy of the U.S. government.

At any rate, here's a copy of the letter that the bank sent out. And I hope the IRS is happy now.

Standard Chartered.jpg

Edited May 28, 2014 by TallGuyJohninBKK

[BngkkB]

I have not studied up on this, but I would think the main thing the US gov't is looking for would be the source of funds in a foreign account? If all the funds in a foreign account were transferred to said account from a US Bank I would think there is not much to worry about? Even if your holding the 800K on deposit for Visa reasons, if the funds originated from a US bank the US gov't would already have a record of it?

If the funds originated from an offshore account then I could see the worry, but if someone has an offshore account that the US gov't is not aware of then why transfer it to an acct that has to be reported to the US gov't? Keep it offshore.

If the funds come from wages earned overseas aren't you given a US tax credit on the first X amount? Again I haven't studied up on any of this so I really have no idea? Maybe someone that has actually read the agreement could enlighten me?

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