Donald Trump, FATCA, and Citizen-Based Taxation; What Will Happen Next?
On the 9th of November, Donald Trump was chosen as the 45th president of the United States. Americans Overseas went to an event organized by the US embassy. It was an event that started early morning, Dutch time, and turned out to be somewhat of an election roller coaster. We had our preference, but Americans Overseas will always try to remain a non-political organization. Our aim will be to monitor any future tax news regarding CBT (citizen-based taxation), FATCA (Foreign Account Tax Compliance Act), and any other change in US taxation for Americans living overseas.
Roughly, 8 million Americans living Overseas are faced each year with their US tax filing obligation. America is the only country in the world that obligates its citizens to file regardless of where they live or work. Trump’s predecessor, Obama, introduced FATCA, which forced every financial institution to hand over lists of US clients. This law was designed to catch tax cheaters hiding money. Unfortunately, it made life for Americans more difficult from a tax and financial perspective, because banks started refusing Americans’ service.
What will Donald Trump do in the wake of FATCA to make the lives of Americans living overseas easier? Unfortunately, he made no clear statements on what he plans to do specifically about FATCA and citizen-based taxation. However, he has been very consistently stating that he will lower taxes.
This means that US citizens (and green card holders) living overseas will still need to file their annual returns, but the chance that they will actually owe tax to the US will be further minimalized.
Trump is set to take office at the beginning of next year and we will closely follow any new developments. For questions on US taxation, please feel free to contact us. Any consultation is free of charge and with no obligation.