Posted on January 29, 2013 by Joe Smith Posted in Issues regarding US persons abroad 4 Comments The largest pension schemes in Hong Kong escape from Fatca after being judged to be low risk for tax evasion. Hong Kong retirement funds to be exempt from Fatca Share this:TwitterFacebookEmailLike this:Like Loading...
That is one of the major changes in the Final FATCA FATWA… This is just local reporting as to how it applies in Hong Kong It applies to all countries.
As a side note, retirement funds like the KiwiSaver was the only complaint out of New Zealand during the comment period. It was a Big issue for Australia too. Now that they get this exemption, will it remove some of the pressure, even on the margins about signing an IGA? Don’t know, but it could.
Here is a reasonable “major points” summary of Final regs, if you disregard the marketing message at the bottom.
This is the Point that references it..
@ Just Me
RE: retirement funds. Does that mean exempt and no paperwork is required by either the FFI or the individual or does that mean exempt but only if the individual files forms and makes no errors because errors mean penalties?
I think that this is pretty much the case for most retirement funds, having read the final FATCA regs. But we don’t know what the final result will be for each country until we see the IGA (or see that no IGA is accepted).
The exemption of government sponsored retirement funds is only FFI directed. This does nothing to change the individual requirements. IE, you still have the 3520 form filing requirement. They, if we understand the final regs properly, don’t have to search you out and report on you.