US Unlikely To Crack China FATCA Agreement
No FATCA benefit for China
FATCA has been created to track down the offshore financial assets of US taxpayers and make the institution concerned reveal details so that tax can be collected.
The failure by the institution to register with US tax authorities will see a 30% withholding charge being levied on all financial transactions between it and the USA.
Now China is telling the US that there will be so few US citizens holding Chinese bank accounts that the cost of implementing FATCA outweighs the benefit to the nation’s financial institutions.
The Chinese have also pointed out that even the opportunity of signing an IGA which would allow them to get details of Chinese taxpayers in the US would also serve minimal benefit to the government.