The United States of America has put a new legislation in place to prevent tax evasion by those subject to U.S. taxes. This legislation is called the Foreign Account Tax Compliance Act (FATCA). FATCA requires financial institutions world-wide to report on U.S. taxpayers, so-called “U.S. persons”.
This legislation applies to all account holders private individuals and legal persons of ING Luxembourg. This page elaborates on legal entities.
FATCA requires financial Institutions to:
- Identify the FATCA status of their customers (legal entities)for which one of the following U.S. indicia are found:
- the registered office or place of business is in the United States of America
- the current (operating, mailing, post office box or c/o) address is in the United States of America.
- Document customers via the self-certification form. This means that customers have to sign a form imposed by the Internal Revenue Service (IRS, the United States tax agency) to confirm their FATCA statuses.
- Report on:
- the identity of the U.S. entity, its U.S. owners and any U.S. person able to influence or take decisions on behalf of this entity
- their accounts and account balances
- the financial income on these accounts.
The first reporting will occur in 2015 and will cover the year 2014.
Luxembourg, like most European nations, has agreed to enter into an Inter-governmental Agreement (“IGA”) with the U.S. and to render FATCA applicable in its domestic legislation. As a consequence, Luxemburgish Financial Institutions must report this information to the "Administration des Contributions Directes (ACD)" (local fiscal authority). The ACD will supply this information to the IRS.
ING will contact its customers to collect their FATCA statuses via the self-certification forms. Customers are required to confirm and evidence their status:
- If the company is a U.S. person (created or organized in the United States or under the laws of the United States, or a U.S.-based branch of a non-U.S. company), a W-9 form (Request for Taxpayer Identification Number and Certification) has to be filled in. See the website of the IRS for more information.
- If the company wants to attest that it is not a U.S. person, a W-8BEN-E form (Certificate of Status of Beneficial Owner for United States Tax Withholding and Reporting) has to be filled in and signed by the person(s) that have been duly designated as authorized to sign binding documents for the company. In this document, the company itself declares what her status is under FATCA. See the website of the IRS for more information.
Please note that some companies, although not tax liable in the United States, may still be subject to reporting to the IRS! As an example, there are special rules for financial institutions and for passive entities with U.S. UBOs.
ING continues to provide services to U.S. and non-U.S. corporations as long as they are willing to deliver the required FATCA documentation.
New customers for whom U.S. indicia are found, will have to be documented before ING will start providing them services.
In the absence of the required documentation (for customers which opened an account before July 1st, 2014) , ING Luxembourg will be obliged to consider customers with U.S. indicia as U.S. Persons. As a consequence, these customers' data and accounts must be reported to the IRS (via the local tax authorities).
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