Should China decide not to sign on to the U.S. Foreign Account Tax Compliance Act, or FATCA, the rest of Asia would likely still comply with it, said industry officials. Earlier this month, several Asian jurisdictions were named by the U.S. Treasury as being in talks over the signing of inter-governmental agreements (IGAs) with the U.S. for complying with the act.
“Clearly China is influential in the region and if China chooses not to cooperate it will not be helpful,” Charley Kinsley, a partner with KPMG in Hong Kong, told Compliance Complete. “I am not however convinced it would be a significant blow to regional implementation,” he said. Kinsley added that there did seem to be some evaluation of FATCA within China, although, there has been no official word on Beijing’s position.
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