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FATCA - is Payoneer customer funds?

segaton
segaton Member Posts: 1 ✭
in Ask The Community
FATCA - Foreign Account Tax Compliance Act

Is payoneer reporting my funds held at payoneer to US Treasury (which would then report to my home country) because of the FATCA?
Or is there a known date or estimate when this reporting will start?

"The United States has indicated that it will be undertaking automatic information exchanges pursuant to FATCA from 2015 and has entered into intergovernmental agreements (IGAs) with other jurisdictions to do so. The Model 1A IGAs entered into by the United States acknowledge the need for the United States to achieve equivalent Levels of reciprocal automatic information exchange with partner jurisdictions. They also include a political commitment to pursue the adoption of regulations and to advocate and support relevant legislation to achieve such equivalent Levels of reciprocal automatic exchange."

Comments

  • lavina
    lavina Member Posts: 1 ✭
    I don't know why the Internet has not blown up about this yet, but both US and the prepaid MasterCard issuer Choice Bank's country Belize signed these treaties.

    So my question is... Do the owners of Payoneer Prepaid cards will have to worry about being reported to their countries tax authorities either by Belize or by the U.S.?

    Thanks!
  • MrSmith
    MrSmith Member Posts: 2 ✭
    Depending on which country you are, data collection starts January 1st, 2016 and first round of exchange will occur in September, 2017. In all consecutive years, data exchange has to happen within 9 months from the previous calendar year - at least this is what I understood from the officiel FATCA doc. These dates are valid if your country is one of the early adopters.

    As for Payoneer reporting, I have no idea. I'd assume Payoneer itself doesn't have the obligation to report, however I'm not sure if the bank they are using for the collection account (Bank of America) will have.
  • MrSmith
    MrSmith Member Posts: 2 ✭
    I'd assume the question comes down to whether Bank of America where Payoneer's collection account is and Choice Bank Belize will report anything. As far as I understand you have no account at Choice Bank in your name, but I don't know how BOA's colleciton amount looks like.

    It'd be great to get a little more info on this from Payoneer as it really does matter when and what exactly gets reported and in what form to match up with your local tax report.

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