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Republican bill seeks to outlaw US dual taxation for expatriates
| Published: | 11 Jan at 6 PM |
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Tagged: USA, Citizenship
American expats suffering financially from dual taxation may be about to get relief!
After receiving endless complaints from US citizens living overseas about the unfairness and complications of citizen-based taxation as exemplified by FATCA, Republicans have now put forward a bill aimed at amending the hated system. Aptly named the ‘Tax Fairness for Americans Abroad Act’, the overdue attempt at repositioning the taxation goalposts was received just before the Democrat takeover of the House of Representatives.
According to the proposed bill, expat US citizens living overseas should be given exemptions from taxation on both their unearned and earned overseas income. Republican Congressman George Holding tabled the eagerly awaited bill, saying the present system is archaic and has opened a huge number of American expatriates to the risks of double taxation on their funds and their status with overseas banks. FATCA requirements force foreign financial institutions to give full details of their US citizen clients to the US authorities, with devastating penalties should they refuse to comply. As a result, US expats in general are now being shunned by overseas banks and investment firms.
The bill classifies ‘qualified, non-resident citizens’ as expats who have an overseas tax jurisdiction, have complied with US tax laws over the past three years and have been resident overseas for one tax year or at least 330 days in the taxable year. Legal counsel for American Citizens Abroad Charles Bruce told the media it’s essential for those working on the proposed legislation as well as for the expat community to fully understand the complexities of the current tax code and how they will be affected should the bill become law. ACA’s executive director Marylouise Serrato confirmed her organisation is very interested in the development and enacting of the new bill, and is now pushing for the adoption of residency-based taxation.
After receiving endless complaints from US citizens living overseas about the unfairness and complications of citizen-based taxation as exemplified by FATCA, Republicans have now put forward a bill aimed at amending the hated system. Aptly named the ‘Tax Fairness for Americans Abroad Act’, the overdue attempt at repositioning the taxation goalposts was received just before the Democrat takeover of the House of Representatives.
According to the proposed bill, expat US citizens living overseas should be given exemptions from taxation on both their unearned and earned overseas income. Republican Congressman George Holding tabled the eagerly awaited bill, saying the present system is archaic and has opened a huge number of American expatriates to the risks of double taxation on their funds and their status with overseas banks. FATCA requirements force foreign financial institutions to give full details of their US citizen clients to the US authorities, with devastating penalties should they refuse to comply. As a result, US expats in general are now being shunned by overseas banks and investment firms.
The bill classifies ‘qualified, non-resident citizens’ as expats who have an overseas tax jurisdiction, have complied with US tax laws over the past three years and have been resident overseas for one tax year or at least 330 days in the taxable year. Legal counsel for American Citizens Abroad Charles Bruce told the media it’s essential for those working on the proposed legislation as well as for the expat community to fully understand the complexities of the current tax code and how they will be affected should the bill become law. ACA’s executive director Marylouise Serrato confirmed her organisation is very interested in the development and enacting of the new bill, and is now pushing for the adoption of residency-based taxation.
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