FATCA for entities

The USA implemented legislation to prevent tax evasion by their liable taxpayers, applicable since 1 July 2014. This legislation, called the Foreign Account Tax Compliance Act (FATCA), requires non-US financial institutions, “Foreign Financial Institutions - FFI” (such as ING Luxembourg S.A.) to identify and report persons subject to US taxation, known as “U.S. Persons”.

This legislation applies to any individual or entity identified as a U.S. Person, who hold financial accounts. This page details the impact on individuals only.

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. 

Like most European countries, Luxembourg concluded an Intergovernmental Agreement (IGA) Model 1 with the US on 28 March 2014 to ensure that the provisions of FATCA apply in Luxembourg’s national legislation. As a result, Luxembourg financial institutions (FFIs) must communicate the required information annually (and at the latest by 30 June following the year reported) to the Taxation Authority (Administration des Contributions - ACD). The latter will in turn send this information to the IRS by 30 September of the same year.

For new customers, and in accordance with regulatory obligations, ING Luxembourg is obliged to collect from the customer a signed tax self-certification including their tax residence and their Tax Identification Number. The customer is required to confirm and prove their American status (U.S. Person or non-U.S. Person). Otherwise, ING is not authorised to open a bank account.

ING Luxembourg will continue to offer all its services to US citizens in connection with current and savings accounts, provided that these citizens agree to provide the information required by FATCA.

It should be noted that ING Luxembourg cannot provide securities services to US customers and that if a customer initially identified as non-US becomes US (by citizenship or residence), any securities services provided would have to be stopped and the financial assets would have to be sold or transferred to another financial institution.

If the required documents are not provided within a very specific timeframe, ING Luxembourg will have to consider the customers concerned as undocumented accounts. ING Luxembourg will then be obliged to restrict or even close these accounts and to communicate them to the IRS (via the Luxembourg tax authorities).

More information

For more detailed information on these measures and their implications, please consult:

Foreign Account Tax Compliance Act (IRS.gov)

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