Singapore and the USA agreement

By in

usa-singaporeSingapore complies with the USA
As the tide moves ever in the direction of Asia, Singapore is rapidly becoming the number one place of business and finance, out doing its European counterpart Switzerland. However, like Switzerland Singapore to seem to be submitting to the wishes of the USA.
FATCA and the USA
Foreign Account Tax Compliance Act (FATCA) is part of a wider USA initiative aimed at US citizens, in which foreign financial institutions must share information with the Internal Revenue Service (IRS). This is supposedly designed to encourage US tax payers to come clean and pay what they owe, rather than retrieve money from foreign companies. Under this legislation, financial institutions must reveal details on any of their American clients that have more than $50,000 in assets or investments, if the foreign body fails to do this the USA will put a 30% holding tax on any assets and investments held within the USA.
When Singapore and USA agreement comes into force
Although there has been no official signing of inter-governmental agreements between Singapore and the USA, they have agreed on the substance, and are due to complete by the end of the year. July 1st is the date in which FATCA is due to come into effect, however on the IRS website it is stated that ‘the calendar years 2014 and 2015 will be regarded as a transition period for purposes of Internal Revenue Service (IRS) enforcement and administration with respect to the implementation of FATCA by withholding agents, foreign financial institutions (FFIs), and other entities’
Who wants US citizenship?
This probably has a lot to do with the increase in US citizens giving up their citizenship to move abroad. Some more recognisable people giving up their citizenship include Tina Turner, Jet Lei, who moved to Singapore and more recently Facebook creator Eduardo Saverin, whom also moved to Singapore.