[Old]

I think there is some confusion about 2 different issues (although linked). FATCA has nothing to do with you reporting any offshore accounts/investments to the IRS - you have to do that anyway. What forms to attach to your tax return are found on the IRS website. But, once again, when FATCA becomes effective, ANY transfer of money out of the US for whatever purpose to a non-compliant financial institution anywhere in the world, will be subject to a 30% withholding tax. The withholding tax is not dependant on you filing the appropriate forms or not, but entirely on the state of compliance of the financial institution to which an outward transfer is made. At this point I cannot get an answer from SA banks if they plan to be compliant - and compliance can take different forms - as said before, easiest way would simply be to no longer hold accounts for US persons.
And again, this is probably only important to anyone making substantial transfers of money out of the US, although personally I would hate to pay 30% tax on any amount!

[Knersus]

I see the deadline for them is June 30, 2013. I can not see how this will be enacted by foreign financial institutions. Which International company with income from the US are gonna hand over 30% of their income to the US IRS before taxes are even filed? I can definitely see how a lot of companies will move HQ's out of the USA.... Pretty arrogant from the IRS if you ask me....

They are also suppose to only propose rules and regulations now....Dec 11...so under the current conditions that will take another 4 years.... :-)

Old...the same form we were discussing are to be used with Fatca as well....like form 8938...most of them though has a $10k threshold. Guess we'll see what happens. Might have to transfer to a relative later...hakuna matata

This post has been edited by Knersus: 30 January 2012 - 07:31 PM