US LLC + Living in the Philippines

[12345]

Would the US normally share data with countries that report under FATCA? Or do they only receive data but never share data themselves because they're the superpower?

No, there is not much reciprocity in FATCA on the US end. Especially considering its Philippines its near 0 chance

Wikipedia :

• Lack of reciprocity. There is no US legislation to allow reciprocity, and as of 2017, no reciprocal data exchanges have taken place.[118] The model IGA states: "The Parties are committed to working with Partner Jurisdictions and the Organisation for Economic Cooperation and Development on adapting the terms of this Agreement and other agreements between the United States and Partner Jurisdictions to a common model for automatic exchange of information, including the development of reporting and due diligence standards for financial institutions." The president's budget for year 2014 included a proposal to allow the Treasury Secretary to collect information which could be used for FATCA reciprocity.[119] The proposal stated that its intent was to "facilitate such intergovernmental cooperation by enabling the IRS to reciprocate in appropriate circumstances"; however, the proposal did not request to allow the Secretary to have further transmittal authority. The president's federal budget proposals of 2014, 2015 and 2016 did not list either costs or revenues for reciprocity implementation in any of the coming 10 years—thus assuming that this collection was either cost neutral or, more logically, it would be interpreted as not budgeted.[120][121] FATCA doesn't follow the principle of mutual benefit of international bilateral agreements. IGAs were enforced under the imminent sanctions to foreign financial institutions, without any benefit or reciprocity for the rest of the countries.

(PH didn't sign IGA btw)

 

[Jock]

Paypal and Wise are run in the PH itself under PH gov regulations so reporting may be a part of this.
You need to remember though that this is a highly inept country. For example yesterday I emailed my bank. Mail was rejected by server. Call them up, phone number disconnected. It is a clown country.

 

[frankx1]

Paypal and Wise are run in the PH itself under PH gov regulations so reporting may be a part of this.
You need to remember though that this is a highly inept country. For example yesterday I emailed my bank. Mail was rejected by server. Call them up, phone number disconnected. It is a clown country.

Thanks. Wouldnt it be easily possible to use some non-PH paypal account, especially with non passthrough company types while residing in PH?

I thought even with a normal US LLC you easily get a US paypal acc as long as you have EIN / ITIN.. then maybe mercury bank account and nothing should be locally in PH?

 

[Jock]

I don`t know how Paypal would work here for an LLC. I`d like to know.
I had a Paypal account for an IBC. Worked for 12 years but they shut it down last year, saying that the Paypal account must be in the country of incorporation. They banned the company and me at the same time so can`t reopen.

 

[Don]

Paypal and Wise are run in the PH itself under PH gov regulations so reporting may be a part of this.
You need to remember though that this is a highly inept country. For example yesterday I emailed my bank. Mail was rejected by server. Call them up, phone number disconnected. It is a clown country.

I guess most people would not run PH companies but instead form offshore.

 

[Jock]

I guess most people would not run PH companies but instead form offshore.

It was an offshore company. IBC.

 

[12345]

Thanks. Wouldnt it be easily possible to use some non-PH paypal account, especially with non passthrough company types while residing in PH?

I thought even with a normal US LLC you easily get a US paypal acc as long as you have EIN / ITIN.. then maybe mercury bank account and nothing should be locally in PH?

I know a guy that opened mercury account as resident of Cambodia (citizen of Poland).

I don`t know how Paypal would work here for an LLC. I`d like to know.
I had a Paypal account for an IBC. Worked for 12 years but they shut it down last year, saying that the Paypal account must be in the country of incorporation. They banned the company and me at the same time so can`t reopen.

Yes you can but need ITIN and EIN. Make sure you log into PP with USA IP only ! otherwise you might get blocked

 

[Don]

I know a guy that opened mercury account as resident of Cambodia (citizen of Poland).

Yes you can but need ITIN and EIN. Make sure you log into PP with USA IP only ! otherwise you might get blocked

PP has highly advanced detection mechanisms now. It's very easy to get blocked if you don't know what you are doing.
Basically, to avoid blocking, I recommend anyone set up a computer in the company's jurisdiction with the local phone number, and when you need to access PP, you connect to this computer through a remote desktop app.

 

[scooterguy]

Would the US normally share data with countries that report under FATCA? Or do they only receive data but never share data themselves because they're the superpower?

The US also shares data under FATCA, but it doesn't share the account balance. It shares US income received to the account, including dividend and interest income, as follows:

In the case of the United States, with respect to each Philippine Reportable
Account of each Reporting U.S. Financial Institution:

(1) the name, address, and Philippine TIN of any person that is a resident of
the Republic of the Philippines and is an Account Holder of the account;

(2) the account number (or the functional equivalent in the absence of an
account number);

(3) the name and identifying number of the Reporting U.S. Financial
Institution;

(4) the gross amount of interest paid on a Depository Account;

(5) the gross amount of U.S. source dividends paid or credited to the account;
and

(6) the gross amount of other U.S. source income paid or credited to the
account, to the extent subject to reporting under chapter 3 of subtitle A or
chapter 61 of subtitle F of the U.S. Internal Revenue Code.

You can read the full agreement here: https://home.treasury.gov/system/files/131/FATCA-Agreement-Philippines-7-13-2015.pdf

 

[Don]

The US also shares data under FATCA, but it doesn't share the account balance. It shares US income received to the account, including dividend and interest income, as follows:



You can read the full agreement here: https://home.treasury.gov/system/files/131/FATCA-Agreement-Philippines-7-13-2015.pdf

I suspect the banks in Texas and Florida with LATAM clients started offering "non-interest-bearing deposits" not because of a sudden inflow of Muslim clients who think interest is haram but rather to facilitate privacy.

 

[frankx1]

The US also shares data under FATCA, but it doesn't share the account balance. It shares US income received to the account, including dividend and interest income, as follows:



You can read the full agreement here: https://home.treasury.gov/system/files/131/FATCA-Agreement-Philippines-7-13-2015.pdf

Nice, thanks! I guess in this case the US decides about with whom (country) to share data with based on the details (address, country etc) you write on From 5472?