Article On Fatca Related Issues

[scott h]

Looks like I will be writing checks to the significant others account for living expenses or just wiring myself money. I wonder if the banks could open an account that pays no interest and you write checks to it from your US bank so you are not receiving money, just depositing money you already have?

 

Robert, If I get your drift that is what we do. We have a checking account (no interest paid naturally) at PNB where once a month we deposit next months expenses once my pension hits my (no interest :unsure: ) checking account in the states. We have to wait approx. 30 days for it to clear, but we keep enough on hand for emergencies.

[OnMyWay]

Looks like I will be writing checks to the significant others account for living expenses or just wiring myself money. I wonder if the banks could open an account that pays no interest and you write checks to it from your US bank so you are not receiving money, just depositing money you already have? :thumbsup:

 

Yes, we need to figure something out.  I think Mike S. said he does what you suggested and he closed his accounts.

[Americano]

If I don't get very good news from Land Bank very soon then I will close my account and only deposit money into my wife's account who is not a US citizen and has never lived in the USA.

 

I also have a BPI account but haven't heard from them yet. I moved to another location since I opened the account so probably they don't know how to deliver the documents to me. Probably they are not smart enough to use my email address to notify me.

[earthdome]

I also have a BPI account but haven't heard from them yet. I moved to another location since I opened the account so probably they don't know how to deliver the documents to me. Probably they are not smart enough to use my email address to notify me.

 

I have noticed a trend with you Americano. You seem to have a great deal of negativity about the Philippines. Frequently adding negative comments like the one above.

 

IMHO, if you want your bank to be able to contact you it is your responsibility to let them know your address has changed.

[jon1]

Americano, on 11 Jul 2014 - 12:58 AM, said: I also have a BPI account but haven't heard from them yet. I moved to another location since I opened the account so probably they don't know how to deliver the documents to me. Probably they are not smart enough to use my email address to notify me.   I have noticed a trend with you Americano. You seem to have a great deal of negativity about the Philippines. Frequently adding negative comments like the one above.   IMHO, if you want your bank to be able to contact you it is your responsibility to let them know your address has changed.

 

I would actually view that as a lowered expectation not a negative but more probability the reality. I am sure that he listed a cell number with his account also. Some banks are pretty good with customer service and even use email. I rarely have found any businesses using email, mostly text (if that).

Edited July 11, 2014 by jon1

[i am bob]

Yes, this is the Philippines...

 

So if you move and don't tell your bank?  If they can't find you (nope, not under the bed...), they just might think your money is theirs!!!!

 

:mocking:

[MikeB]

I haven't heard from BPI either or another one and they "should" both have my correct current address, but not current phone number so that may be why I haven't heard from them. As someone else stated they mostly do things by phone or text here because they know how hopeless the postal is. Metrobank is the only bank that contacted me (by phone). But they have until December. The account agreement you sign when you open the account probably states that it's the account holder's responsibility to provide current address and phone numbers to the bank. If they can't contact you I don't know what they do, probably close or freeze the account and hold the funds until you contact them. That would be my guess.They could report you to the IRS as a "recalcitrant" as well but that seems a little extreme. Between FACTA compliance and the Bank Secrecy Laws the local banks are really between a rock and a hard place.

http://research.bworldonline.com/publications/story.php?id=394

[joeboy]

Ok boys and girls let's get down to some facts and stop spreading rumors and guesting what effect FACTA will have on foreigners living in Philippines who are US citizens and other people who have stayed in the USA for more than 31 days in the previous year.

 

I keep hearing people say more than $10,000 in a foreign bank but that is not what the banks in the Philippines are saying. They are saying they must collect and pay to the IRS 30% of payments from US source income.

 

Here is the letter I received from Land Bank which is one of the major banks in the Philippines, the Certification, Consent and Waiver form and my letter to the Head of the Land Bank in Carcar:

 

Land Bank Letter Pg.1.jpg

 

Landbank Letter Pg.2.jpg

 

Landbank Letter Pg.3.jpg

 

Certification Consent and Waiver Pg.1.jpg

 

Certification Consent and Waiver Pg.2.jpg

 

Certification Consent and Waiver Pg.3.jpg

 

Land Bank (FATCA) Letter.doc

First thanks for taking the time to post those letters.

 

It is a very difficult thing to be an American living abroad now.

 

You need not worry about 30% witheld from your incoming transfers as you have complied with the consent and waiver of your rights under Philippine law.

 

Your account info will be forwarded to the IRS/FINCEN and you will be burdened with reporting the measly interest paid on your RP bank accounts, but keep in mind you do not need to pay tax to the IRS on the interest because,  20% tax has already been taken out by the BIR on the interest. But to get credit for that 20% tax you need to include form 1116 with your 1040. This form is where you take credit for forign tax paid.

[Americano]

Landbank didn't need my new address to mail a letter or notification to me since we have some really nice men working at Philpost in Carcar. The Postmen have been delivering all mail to me which was addressed to my old address. Also, Lanbank has my cell number which has never changed and my email address which has been the same for many years so there's no reason they couldn't contact me before my wife went in the bank and was told I must fill out this form and submit it before the end of June which was already passed.

 

Its not our fault Landbank didn't have our new address. My wife gave our new address to Landbank after we moved to another apartment but still in Carcar City but the bank said we must have a Barangay Clearance before we can change your address. And then the Barangay said, "we can't give you a Barangay Clearance until you have lived in this Barangay for 6 months."  So before you accuse someone of negativity, get all of the facts. Maybe what they are saying is just the truth. Some things in this country are very screwed up so maybe you will finally learn too if you lived here long enough.