Taxes

U.S. Tax Rules Drive Dual-Citizenship Taiwanese To Drop American Passports

Huge costs and hassles

|

A number of Taiwan residents with dual nationalities have chosen to renounce their American citizenship to avoid taxes under FATCA, formally known as Foreign Account Tax Compliance Act, according to local media reports.

Ruling Kuomintang Legislator Lai Shyh-bao was quoted as saying that scores of owners of small- and medium-sized enterprises and management executives have begun proceedings to relinquish their U.S. citizenship.

Because of FATCA and the latest U.S. decision to increase taxes on those whose annual income exceeds US$400,000, Lai said Taiwan residents with U.S. citizenship could be taxed up to NT$15 million (US$515,464) if they sell real estate in Taiwan, while they may just need to pay NT$1 million in taxes.