Ongeveer 40.000 ingezetenen in Nederland hebben last van het FATCA verdrag met de US.
America, along with Eritrea, is the only country in the world that taxes her citizens worldwide. In 2013, the Dutch government signed a treaty with the US called FATCA (Foreign Account Tax Compliance Act) that requires all financial institutions to hand over all account information of their Dutch-American customers. The initial goal was to track down US tax evaders abroad.
Connection legislation to fiscal reality
This agreement has a significant impact on Dutch citizens who have never lived or worked in the United States. For example; people who were born in America but moved back to the Netherlands as infants. Or people who were born in the Netherlands with one American parent. All these Dutch citizens are suddenly confronted with American tax liabilities, in addition to their Dutch tax liabilities.
There are approximately 40.000 citizens in the Netherlands who are also US citizens. This number does not include the group of Dutch people who are in possession of a Green Card (working permit) and who are also required to file taxes according to the global American tax rules.
The Dutch-American treaty doesn’t relate to the fiscal reality. One of the developers of this treaty (name known to Americans Overseas) has stated that the initial goal was to identify tax evaders, not to focus on decent taxpayers. This last group now faces enormous problems that make it very hard or nearly impossible for them to plan their financial futures.
Americans Overseas is a knowledge center for people facing the problems mentioned above. We talk to many Dutch people who, because of this FATCA treaty, end up in very distressing situations. A few examples:
- Dutch social benefits are being taxed in America (for example WIA, WW, sick pay)
- Dutch retirement products are being stopped and paid off early
- Dutch people who sell their houses in Holland are confronted with an American taxassessment of 20%, which doesn’t take the Situs rule (taxation in the country where the
property is located) into consideration
- Owners of commercial property in the Netherlands are taxed even more heavily, which isone of the measures taken by America to discourage investments outside her own borders
- A loan from one’s own corporation is regarded as income and will be taxed
- Capital gain from selling stocks from a company is immediately liable for taxes in America,and not at distribution. This rule doesn’t apply for companies located in the United States. It is a policy of discouragement for investments outside US borders. This rule implies that you are living in America and own a foreign company.
America has included a ‘savings clause’ in the treaty, stating in general terms: ‘If America is not allowed to impose taxes by local Dutch legislation, then this will be overruled.’ This means that America is always in the position to impose taxation according to US rules rather than following local law.