What is FATCA (Foreign Account Tax Compliance Act)
FATCA is a United States of America (USA) law under the Hiring Incentives to Restore Employment (HIRE) Act. FATCA is targeted towards Foreign Financial Institutions (FFIs) as well as any other Financial Intermediaries in order to prevent Tax evasion by US Citizens and Residents via offshore Accounts.
Financial Institutions and any other Financial Intermediaries are required by Law to enter into an Agreement with the US Treasury Department to report Financial Accounts and information held by US Citizens and Residents, or held by foreign entities in which a US Taxpayer holds significant shareholding, to the Internal Revenue Service (IRS).
The FATCA Law enables the detection of Tax manipulation and evasion by reporting, thus increase transparency.
The impact of FATCA on you
FATCA is applicable to all Banks and Financial Institutions, therefore QIIB will require all Customers to provide additional information if any of the following indicators are applicable as per the FATCA regulations:
• US Citizen or Resident
• Place of Birth is USA
• Holder of a US Residence Address or Mailing Address (present)
• Holder of a US Telephone Number (present)
• Standing Orders to any Accounts Maintained in the US
• A holder of a Power of Attorney or Signatory Authority who is a holder of a US Address
• An ‘in-care of’ address or a ‘hold-mail’ address that is the sole address the FFI has identified for the account holder
• US Institution / Company
• Passive Non-Financial Foreign Entity with more than 10% US ownership
According to the articles of the Intergovernmental Agreement (IGA) between the State of Qatar and the Government of the United States that, the Customer shall bear full responsibility for providing correct and accurate information. The Customer is to notify QIIB in the event of any change in such information.
What is CRS (Common Reporting Standards)
Common Reporting Standards (CRS) has been introduced by the Organization for Economic Co-operation and Development (OECD) to enhance Cross-Border Tax Compliance. CRS allows for the automatic exchange of Financial Information (AEOI) between participating jurisdictions. CRS compliance is mandatory under the Law of the State of Qatar. The regulation mandates QIIB obtain and report required CRS information.
Tax Residency is often specified as your country of residence, however, exceptional circumstances e.g. Working or Studying Abroad, could result in you being a resident in more than one Country. This circumstance is referred to as Dual Residency.
For more information, please consult a Tax Adviser or visit the OECD AEOI Website.
The impact of CRS on you
CRS is applicable to all Banks and Financial Institutions, therefore QIIB may require Customers to provide additional information and complete Self Certification documents. Customers holding Accounts at QIIB whether Individuals or Entities will be subject to CRS due diligence.
Information reported to Tax Authorities:
QIIB, will report the customer/account information regarding its applicable/reportable Customers in line with Regulatory guidelines.
Forms to be completed for FATCA & CRS