roddy Posted October 15, 2011 at 11:44 AM Report Posted October 15, 2011 at 11:44 AM This isn't affecting me directly, but it looks like it might makes things a bit more of a hassle for people I work with and have a bit of a knock-on effect. New US tax rules mean Paypal users are more likely to have to make US tax declarations of one sort or another - what, specifically, I don't know, but it seems to be increasing the hassle / transaction cost of using Paypal, and if you can't figure it out Paypal may just hold a large chunk of your funds to cover potential tax liabilities. I can think of a few people on here who are likely China-based, using a US Paypal account to take payment for services of one type or another. Has this been a problem? Are you having to 'fess up to the IRS, or scale back on Paypal use, or etc.? Is there any advantage / disadvantage to a Chinese-registered account? Quote
Kurtz Posted October 15, 2011 at 04:34 PM Report Posted October 15, 2011 at 04:34 PM Not sure about the specifics, but all americans are going to have to make more disclosure, once FATCA comes into force in 2013, and I suspect that Paypal's policy may be related to this. This is going to mean more paperwork and more burden for americans as well as financial institutions. I am aware of some banks who will not deal with american accounts anymore as a result. In addition, as the rules apply to all financial intermediaries dealing with the US, I suspect that Chinese banks will impose the same disclosure requirements... Quote
adrianlondon Posted October 15, 2011 at 05:30 PM Report Posted October 15, 2011 at 05:30 PM It's happening where I live (Switzerland) too. Once you leave the country you're allowed to keep your bank account (to pay any outstanding bills, or receive any outstanding salary etc) unless you're American. Then, accounts are closed when you de-register with the canton/state where you live (which is compulsory for everyone). Quote
kdavid Posted October 15, 2011 at 10:42 PM Report Posted October 15, 2011 at 10:42 PM @Roddy Is there an article you read somewhere which outlined how this would affect Paypal? If so, could you please provide that link? Quote
roddy Posted October 16, 2011 at 11:36 AM Author Report Posted October 16, 2011 at 11:36 AM There's this. It's not just Paypal, but all payment providers, so I'd assume that means credit card processors as well. USD20,000 a year and 200 transactions might sound a lot, but if you're running a business and using Paypal to take most of your payments, it's not that much. Quote
Matty Posted October 17, 2011 at 12:27 AM Report Posted October 17, 2011 at 12:27 AM The American government really knows how to dig it's grave deeper and deeper. I assume now there'll be more and more people moving their banking and paypals to Hong Kong, you can't beat Hong Kong for tax and ease as far as I see. Now's the time to get a Hong Kong ID card if you can find a way. ^^ Then again there is a 0.5% fee for transfer between countries I think... 1 Quote
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