Americans Overseas and Citizen Based Taxation CBT

3 min
Published on: 21-11-2017 Last modified on: 30-01-2024

NEWS New bill adjusting American tax system not the end of Citizen Based Taxation CBT.

Americans Overseas very much values informing as well and independently as possible, based on facts, on the issues concerning the American Citizen Based Taxation CBT.

What is Citizen Based Taxation? The United States of America is the only developed country in the world that enforces a tax duty on citizenship rather than whether the American citizen lives or works in the country. This implies that every US citizen (also those with dual nationality) wherever they are born or where they are currently based or work, has to file US taxes yearly.

Bill on reforming the American tax system

President Trump has repeatedly announced plans to reform the American Tax system.

Recently Americans Overseas and several organizations hoped that following that plan would also mean that the Citizen Based Taxation CBT for individuals would be abolished. Several media reports indeed suggested that an adjustment of the Citizen Based Taxation was to be included in the amendment – and thus that tax filing obligations of individual Americans abroad would change.

No adjustment Citizen Based Taxation CBT

We checked the bill in detail. We regret as much as the action committees that the present American bill does not mention anything on the adjustment of the Citizen Based Taxation CBT. For the time being, nothing will change concerning the Citizen Based Taxation and the tax obligations for Americans abroad. The number of Americans abroad renouncing their US citizenship because of CBT continues to grow this year, too.

What does Americans Overseas do?

Americans Overseas raises awareness with American politicians through national and European politics for the problems surrounding CBT.

We achieved the following this year:

Report Americans Overseas to GAO

The US Government Accountability Office (GAO) is in charge of researching the effects of FATCA on Americans abroad and the support Americans receive abroad.

Americans Overseas recently cooperated with the Dutch Ministry of Finance and the Ministry of Foreign Affairs to present the research Americans Overseas did last year on the tax issues for Americans abroad to the GAO. We hope this report creates a better understanding with concerned US agencies and will lead to support for affected American citizens. The GAO is expected to present the findings of its research on FATCA to the US government mid 2018.

Americans Overseas’ meeting with the American Embassy in the Netherlands

Recently Americans Overseas has had a meeting with deputies of the American Embassy and the American Consulate General in the Netherlands to raise more awareness among the employees of the Consulate and the Embassy for the problems Americans in the Netherlands have with FATCA and the CBT obligations. We see positive changes. It will be easier and especially faster to apply for a Social Security Number (SSN). Thus American citizens will be able to comply faster with the new regulations and prevent refusals of service by Dutch banks and other financial institutions.

Americans Overseas and Dutch Politics

Americans Overseas has made Dutch politics more aware of the problems American citizens have with their banks. Efforts of the Dutch Ministry of Finance also effected that banks in the Netherlands for the time being do not close the bank accounts of clients who are not able to present a SSN. This is only done under the condition that the client can prove that he/she has started the SSN application and that he/she is awaiting the SSN.

Americans Overseas

Americans Overseas continues to actively inform governments and official institutions about all problems American citizens are encountering. For more information, you can always contact Americans Overseas.


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Frequently asked questions

Understanding the US tax system, the obligations, and all the additional terms can be difficult. Especially if one lives outside of America. Is your question not answered? Contact us.

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