What: AmCham Luncheon on FATCA
When: Tuesday, June 3, 2014, 12:00pm – 1:45pm
Where: Hilton Hanoi Opera, 1 Le Thanh Tong Street, Hoan Kiem District, Hanoi
The Foreign Account Tax Compliance Act, better known as FATCA, was passed by Congress in 2010 and starting this July 1, FATCA requires foreign financial institutions (FFI) to report information regarding accounts of all US citizens and other US “persons” (green card holders) to the IRS. This law requires foreign financial institutions such as local banks, stock brokers, hedge funds, insurance companies, trusts, etc. to report directly to the IRS all their clients who are “US persons.” FFIs that do not become compliant will be subject to a 30 percent withholding on their US investments. In addition, FATCA requires any foreign company not listed on a stock exchange or any foreign partnership which has 10 percent US ownership to report to the IRS the names and tax ID number of any US “owner”.
Much more significant than the cost and time burden, FATCA creates a direct financial and legal threat to all foreign financial institutions. Many Americans residing in Asia have had their foreign bank accounts closed, been refused entry into a foreign pension fund, or cannot enter into insurance contracts overseas. How can Americans abroad survive and US businesses develop globally without access to foreign banks, foreign pension funds and insurance coverage? Americans living in Vietnam have also reported banking difficulties. Many foreign financial institutions have simply chosen to eliminate their US citizens and US person client basis in order to minimize their exposure to FATCA reporting requirements, withholding fees and potential penalties. And who could blame them?
Unfortunately, the new FATCA regulations will deter some companies from placing Americans in key positions abroad where their tax affairs will be even more complicated. Companies may decide it isn’t worth the risk that one of their executives will be caught accidentally breaking these unintelligible rules. The US government should strive to make American companies and individuals more competitive in international commerce, and the new FATCA regulations, while well intended to catch tax cheats, are not helping.
So, what does this all mean and how will it affect the ability for people and companies to do business in Vietnam? On June 3 at lunchtime, AmCham is pleased to welcome Dr. Mick Swartz, a Finance Professor at the University of Southern California, to brief members on FATCA regulations and discuss the implications of this overreaching law.
About the guest speaker:
Dr. Mick Swartz is a Professor of Clinical Finance and Business Economics at the University of Southern California’s Marshall School of Business. His work focuses on investments, derivatives, hedged funds and alternative investing. He has consulted for hedge funds and spent almost a year working on the Dodd-Frank legislation in the United States Senate. Professor Swartz has appeared on CNN, NBC and NPR and is a member of the Board of Directors of The California Hedge Fund Association. In addition to USC, he has also taught at Purdue University, the University of Notre Dame, and at a number of international schools.
Don’t miss this opportunity to lunch-and-learn with AmCham. Click HERE to download the event flyer for this luncheon. We kindly ask that you register your participation by using the online form below or call AmCham at (04) 3934.2790.
COST: 650,000 VND (members) & 850,000 VND (non-members)