Suspension lifted: Belgian data exchange with the US under FATCA resumed

Due to a suspension of the decision of the Data Protection Authority, the data exchange between Belgium and the United States under the Foreign Account Tax Compliance Act (FATCA) has been resumed.

Decision of the data protection authority suspended

Recently, the Marktenhof (a specific chamber at the Court of Appeal in Brussels where appeals can be lodged against decisions of the Data Protection Authority (DPA)) has suspended the execution of Decision 61/2023 of the Data Protection Authority. This decision, issued on May 23, 2023, halted the processing of data of Belgian citizens with American nationality under the FATCA agreement and the law of December 16, 2015, by the Federal Public Service (FPS) Finance.

Read our previous coverage on the decision of the data protection authority:

• Belgium’s Data Protection Authority forbids ‘Unlawful’ Sharing of Accidental Americans’ Data

Data exchange continues

In spite of the suspension, data exchange under the FATCA agreement will proceed as originally planned in 2023. This means that the Federal Public Service (FPS) Finance will be able to process the data of accidental American citizens in Belgium according to the established conditions and schedule.

FATCA and Belgian Americans

FATCA is an American law that targets worldwide tax evasion by American citizens. Foreign financial institutions are required to transmit certain information about their customers who are American citizens to the U.S. Internal Revenue Service (IRS). In 2014, Belgium signed an agreement with the U.S., obligating the Federal Public Service Finance (FOD Financiën) to send this information to the IRS.

“It is of great importance to carefully examine the legislation and the security of data transfer.” “Europe should remain critical in overseeing this, but at the same time, it is inconceivable that FATCA data transfer would be simply halted,” says Daan Durlacher, founder of Americans Overseas. Americans Overseas has been working since 2015 to improve legislation and reduce the burden imposed by FATCA

More information about FATCA and tax data of Belgian-Americans

Americans Overseas informs local and European parliaments about the effects and issues European citizens face with these recently introduced laws. By continuously putting the topic on the agenda and giving it attention, several changes have been achieved.

We started Americans Overseas to assist people from all over the world by providing accurate information to prevent unnecessary panic and offering free and non-binding assistance. If necessary, we have a network of affordable professionals (accountants) who can help you with your tax obligations.

If you have more questions about the implications of FATCA data transfers for accidental Americans, you can contact us at Americans Overseas.

Contact us for more information

Source: Federale Overheidsdienst Financiën