China to Sign FATCA Agreement
Mainland China has been included on a list of jurisdictions co-operating with the United States on a new law to halt tax evasion.
It removes the threat of blacklisting or penalties that had been hanging over Chinese financial institutions. The inclusion will also benefit institutions in Hong Kong, the US and elsewhere with subsidiaries in mainland China.
The Foreign Account Tax Compliance Act (Fatca) is a US law that requires financial institutions around the world to provide information on US taxpayers to the US government. The Treasury Department said on its website that Beijing had reached an "in substance" intergovernmental agreement Model 1 (IGA 1) with the US.
"It is important, as China was seen as the last major outlier in reaching an IGA with the US," said Charles Kinsley, a China tax partner at accounting firm KPMG. "Most major economies have negotiated an IGA, either formally or in principle."
Editor’s Note: This is it. With China and Russia now on board with FATCA it has now become a fait accompli. And once FATCA has been consolidated expect GATCA to follow soon after.