FATCA and CRS

FATCA

The Foreign Account Tax Compliance Act (FATCA) is a US Regulation which requires all Foreign Financial Institutions (FFIs) across countries to identify and report all accounts owned by ‘US persons’ to the relevant regulators. FFIs who do not comply with this regulation may themselves suffer 30% withholding on their US sourced financial inflows. Frequently asked questions about FATCA are available at: http://www.irs.gov/Businesses/Corporations/FATCAFAQs

The US has partnered with over 150 countries by signing Intergovernmental Agreement (IGA) which makes it simpler as well as mandatory under local legislation for FFIs based in the partner countries to comply with the requirements under FATCA. You can also find more information about the IGAs at:
http://www.treasury.gov/resource-center/tax-policy/treaties/Pages/FATCA.aspx

The CLSA Group has registered all its FFI entities on the FATCA portal maintained by the Internal Revenue Service (IRS) and has successfully obtained unique Global Intermediary Identifier Numbers (GIIN) for each FFI entity. These have been listed on the IRS portal and can be accessed at: http://apps.irs.gov/app/fatcaFfiList/flu.jsf

CRS

The Organization for Economic Cooperation and Developments (OECD) has developed the Standard for Automatic Exchange of Financial Account Information (AEoI), also commonly referred to as Common Reporting Standard (CRS). This requires financial institutions such as CLSA to identify the tax residencies of their clients and report the information to the local tax authorities.

Over 100 jurisdictions have signed the Multilateral Competent Authority Agreement (MCAA), which contains the detailed rules that govern the exchange of information amongst the signatory jurisdictions. The complete list participating countries and the status of local guidance is available on the CRS portal

FATCA vs CRS Timeline

fatca_vs_crs_timeline

FATCA and CRS request to our clients

Foreign Account Tax Compliance Act (FATCA) is a US regulation in effect since 1 July 2014. Its aim is to prevent US persons, using offshore accounts, from evading US taxation. The US has partnered with over 150 countries by signing Intergovernmental Agreements (IGA) that require such countries’ local financial institutions to identify accounts held by US persons. Information relating to such accounts is ultimately exchanged with the US.

Common Reporting Standard (CRS) is a global initiative lead by OECD body. Its aim is to prevent individuals and entities, using offshore accounts, from evading taxation in participating countries. CRS came into effect on 1 Jan 2016 in the ‘Early Adopter’ countries (e.g., UK), while it will come into effect from 1 Jan 2017 in the ‘Late Adopter’ countries (e.g., HK). Over 100 countries are committed to participate in the CRS initiative. They are legislating domestic laws that require local financial institutions (FIs) to identify accounts held by foreign tax residents, and report details of such accounts to local tax authorities, who will automatically exchange this information with tax authorities in other countries participating in the CRS initiative.

The clients need to submit their FATCA and CRS self-declarations to CLSA. Some clients may need to provide additional FATCA self-declarations for their US owner(s) and/or CRS self-declarations of their controlling persons.

The client need to inform CLSA and provide updated self-declaration within 30 days of any change in circumstance which may affect their tax residency status or may inundate the information contained in self-declaration previously submitted to CLSA.

The client is required to provide supporting documents to CLSA for verification of the information contained in their self-declarations.

The information collected may be shared with the relevant tax authorities as part of FATCA and CRS reporting obligations, and in response to specific request from the tax authority.

The clients need to ensure that accurate information is provided in their self-declarations since the tax authorities may penalize the clients for making an incorrect declaration either willfully or due to negligence.

Please note CLSA does not provide any form of tax advice. The clients should contact their own tax adviser if any tax related advice is required.

CLSA appreciates the continued support and patronage of all clients. CLSA is happy to provide non-tax related guidance to clients that may be of assistance to prepare and submit the self-declarations.

The clients may contact the team of FATCA and CRS specialists at CLSA via email: fatca-crs@clsa.com

 

Avichal Agrawal

Global Programme Manager, FATCA-CRS Compliance

80 Raffles Place, #18-01, UOB Plaza 1, Singapore 048624
Tel : +65 6416 7888
Fax: +65 6438 6316

Additional Information

CLSA has prepared FATCA and CRS self-declarations for all relevant legal entities in the CLSA group. These have been uploaded to the CLSA’s website and can be accessed at:

https://www.clsa.com/fatca-and-crs/#self-certification-clsa-entities

 

CLSA has prepared a FATCA and CRS Annexure to add related obligations to our Terms of Business. This annexure can also be accessed from CLSA’s website via the link:

https://www.clsa.com/assets/files/Terms_Of_Business/CLSA-Asia-Pacific-FATCA-Annex.pdf

FAQs

FATCA specific FAQ

Q1 What are the various types of FATCA self-declarations? 

  • There are broadly two types of FATCA self-declarations
  • W8 – to be filled by Non-US persons
  • W9 – to be filled by US persons

Q2 How many types of W8/W9 templates exist and how to select the appropriate W8/W9 template?

There is only 1 type of W9 template but there are 5 types of W8 templates. Below guideline can be used to select the appropriate template for submission to CLSA.

Template Instructions Guideline to select relevant template
W-9 Instructions for the Requester of W-9 Any Beneficiary Owner (Individual or Entity) who claims they are Tax Resident in United States
W-8BEN Instructions for W-8BEN Any Beneficiary Owner (Individual only) who claims they are Tax Resident outside United States
W-8BEN-E Instructions for W-8BEN-E Any Beneficiary Owner (Entity only) who claims they are Tax Resident outside United States.

The form also contains options for the entities to declare themselves as exempted from FATCA

W-8IMY Instructions for W-8IMY Any person acting as an Intermediary rather than a Beneficiary Owner
W-8EXP Instructions for W-8EXP A foreign government, international organization, foreign central bank of issue, foreign tax-exempt organization, foreign private foundation, or government of a U.S. possession simply claiming the exemption from FATCA
W-8ECI Instructions for W-8ECI A foreign government, international organization, foreign central bank of issue, foreign tax-exempt organization, foreign private foundation, or government of a U.S. possession if they received income which is effectively connected with conduct of a Trade or Business in United States, and are not eligible to claim an exemption for chapter 3 or 4 purposes on Form W8EXP

 

CRS Specific FAQ

Q1 What are the various types of CRS self-declarations?

There are three types of CRS self-declarations

  • Individual – To be filled by natural persons who hold accounts at CLSA
  • Entity – to be filled by a legal entity who hold accounts at CLSA
  • Controlling Persons – to be filled by natural persons who exercise control of the legal entity

Q3 Where to obtain the templates of the CRS self-declarations?

  • The templates of the CRS self-declarations are available here
  • Click on above link and download the applicable self-declarations.

Q4 What is a TIN? 

  • Taxpayer Identification Number (TIN) is a unique combination of letters and/or numbers assigned to you/your entity.
  • Some countries do not issue a TIN, and some countries may issue alternatives such as social security/national insurance numbers or company registration numbers.
  • The OECD has published a list of the acceptable Taxpayer Identification Number (TIN) formats

Q5 Where is my tax residency?

  • Your tax residency is the country where you are resident / registered for tax purposes.
  • Each country has its own rules for defining tax residence.
  • For more information on tax residence, please consult your tax advisor or the OECD AEOI portal.

Q6 If my entity is a passive NFE but do not have any natural person holding more than 10% by vote or value, who will be the controlling person?

  • In cases where there are no such natural person with more than 10% ownership, the senior managing official who makes decision for the entity will be the controlling person.
  • The entity will need to decide who their senior managing official is.

General FAQ for both FATCA and CRS

Q7 What are the main steps involved in the process of submission of self-declarations to CLSA?

Clients need to do the following for submission of self-declarations to CLSA.

Steps Physical submission
1. Download the self-declaration templates to be used
  • Clients need to decide for themselves which FATCA and CRS templates to use.
  • If in doubt, clients need to seek advice from their tax advisor.
2. Fill in data
  • Clients need to fill in this in clear legible handwriting or type the data in respective fields on the self-declarations.
3. Tick the check boxes
  • Clients need to identify all the check boxes applicable to them
  • Client needs to tick them on the self-declarations.
4. Submit self-declarations to CLSA
  • Clients need to scan the self-declarations clearly and send a soft copy to CLSA via email
5. Provide supporting evidence
  • Clients need to scan their supporting documents clearly and send them along with the self-declarations to CLSA via email

Q8 What are the supporting evidences / documents needed in addition to the FATCA and CRS self-declarations?

  • For Individuals
    • Identity Proof that displays the full name
    • Passport or any other document issued by govt. that displays the nationality, date of birth and country of birth
    • Address proof like bank statement, utility bills; separate for permanent and mailing address
    • Copy of tax statement or any other government issued document that displays their tax identification number.
  • For Entities
    • Certificate of Incorporation / business registration that displays the full legal name, country, and registered address
    • Address proof can also be like registration documents, or annual statements, Memorandum and Articles of incorporation, or Investment Management Agreement, that displays address
    • Entity type can be supported with Memorandum and Articles of incorporation, or Investment Management Agreement, or any other business practice license
    • Copy of tax statement or any other govt. issued document that displays their tax identification number.

Q9 How can you submit your FATCA and CRS self-declarations to CLSA?

  • The FATCA and CRS self-declarations can be sent to us via normal mail or a soft copy can be emailed to CLSA at: fatca-crs@clsa.com

Q10 Does this self-declarations need to be resubmitted periodically?

  • No, however, if the details of the client mentioned in the self-declarations changes then the client needs to provide updated self-declarations to CLSA within 30 days of the change in their details.

Q11 Why do I have to provide this FATCA – CRS information to CLSA?

  • For FATCA : The US has signed intergovernmental agreements with the countries that CLSA operates in, to make it mandatory for financial institutions like CLSA present in those countries to obtain such self-declarations from clients
  • For CRS : The local authorities in each country where CLSA operates in, has made it mandatory for financial institutions like CLSA present in those countries to obtain such self-declarations from clients

Hence, CLSA would not be able to open new accounts if such self-declarations are not provided by clients at time of new account setup.

Q12 What would CLSA do if I do not provide this FATCA – CRS information?

  • CLSA may not open new accounts or offer additional products / services to clients who choose not to comply with CLSA’s request for documentation to establish a client’s status under FATCA or CRS.
  • CLSA may exit the relationship with clients who decide not to provide the necessary information and documentation to CLSA within the required regulatory timeframe.
  • Where clients refused to provide their self-declarations, CLSA is obliged to report them based on information available in our record to the relevant tax authority.
  • CLSA may also be required to withhold tax on certain US source payments coming into the client’s account.

Q13 Who should I contact if I have some queries?

  • CLSA is not authorized to provide you with any tax advisory.
  • For other non-tax advisory queries, you may consult your relationship manager from CLSA who would help you understand this broadly.
  • Specifically, all the account opening related queries can be directed to clientonboarding@clsa.com and all the FATCA and CRS related queries can be directed to fatca-crs@clsa.com

 

CLSA CRS self-declarations

7Please use the self-declarations corresponding to the country in which your booking entity is located in. For example, if you use CLSA Limited and CLSA India Private Limited, you will need to provide 2 CRS self-declarations due to different local legislation requirement.

Country where booking entity belongs to CRS self-declarations
Individual Entity Controlling Person
Australia Individual Entity Controlling Person
British Virgin Islands
Cayman Islands
China
Hong Kong
Japan
Macau
Malaysia
Mauritius
Netherlands
Norway
Singapore
United Kingdom
Hong Kong Individual Entity Controlling Person
India Individual Entity Controlling Person
South Korea Self-declaration

Please email the FATCA-CRS team if your booking entity is located in Indonesia, Philippines and Thailand.

Self-Declarations of CLSA entities

CLSA has prepared the self-certifications (W-9/W-8BEN-E/W-8IMY/CRS) for our entities. CLSA will update these within 30 days of any change in circumstances. All the self-certifications are listed below, and the clients may download the forms of their booking entities. If in doubt, the clients may refer the trade confirmations they receive or they may also contact their Relation Manager to reconfirm the names of their booking entities.

 

SR NO. REGISTERED ENTITIES COUNTRY GIIN FATCA
TAX FORM
FATCA
CLASSIFICATION
CRS
FORM
CRS CLASSIFICATION
1 CLSA B.V. NETHERLANDS NOT REQUIRED W-8BEN-E PUBLICLY TRADED NFFE OR NFFE AFFILIATE OF A PUBLICLY TRADED

CORPORATION

 

 CRS FORM  Active NFE
2 CLSA LIMITED HONG KONG LTL649.00000.LE.344 W-8BEN-E

W-8IMY

REPORTING

MODEL 2 FFI

CRS FORM REPORTING FI-CUSTODIAL INSTITUTION & TYPE A INVESTMENT ENTITY

 

 

3 CLSA

FOUNDATION LIMITED

HONG KONG NOT REQUIRED W-8BEN-E

 

PUBLICLY TRADED NFFE OR NFFE AFFILIATE OF A PUBLICLY TRADED

CORPORATION

 

CRS FORM ACTIVE NFE
4 CITIC CLSA CAPITAL MARKETS LIMITED HONG KONG NOT REQUIRED W-8BEN-E PUBLICLY TRADED NFFE OR NFFE AFFILIATE OF A PUBLICLY TRADED

CORPORATION

 

CRS FORM ACTIVE NFE
5 CLSA FINANCE LIMITED HONG KONG NOT REQUIRED W-8BEN-E PUBLICLY TRADED NFFE OR NFFE AFFILIATE OF A PUBLICLY TRADED

CORPORATION

 

 

 

CRS FORM ACTIVE NFE
6 CLSA FUTURES LIMITED HONG KONG NOT REQUIRED W-8BEN-E PUBLICLY TRADED NFFE OR NFFE AFFILIATE OF A PUBLICLY TRADED

CORPORATION

 

CRS FORM ACTIVE NFE
7 CLSA HONG KONG HOLDINGS LIMITED HONG KONG NOT REQUIRED W-8BEN-E PUBLICLY TRADED NFFE OR NFFE AFFILIATE OF A PUBLICLY TRADED

CORPORATION

 

CRS FORM ACTIVE NFE

 

8 CLSA INVESTMENT SERVICES LIMITED HONG KONG NOT REQUIRED W-8BEN-E PUBLICLY TRADED NFFE OR NFFE AFFILIATE OF A PUBLICLY TRADED

CORPORATION

 

CRS FORM ACTIVE NFE
9 CLSA PROJECTS LIMITED HONG KONG NOT REQUIRED W-8BEN-E PUBLICLY TRADED NFFE OR NFFE AFFILIATE OF A PUBLICLY TRADED

CORPORATION

 

CRS FORM ACTIVE NFE
10 CLSA VENTURES LIMITED HONG KONG NOT REQUIRED W-8BEN-E PUBLICLY TRADED NFFE OR NFFE AFFILIATE OF A PUBLICLY TRADED

CORPORATION

 

CRS FORM ACTIVE NFE
11 ASTERISK NOMINEES LIMITED HONG KONG NOT REQUIRED W-8BEN-E PUBLICLY TRADED NFFE OR NFFE AFFILIATE OF A PUBLICLY TRADED

CORPORATION

 

CRS FORM ACTIVE NFE
12 CLSA INVESTMENT HOLDINGS LIMITED HONG KONG NOT REQUIRED W-8BEN-E PUBLICLY TRADED NFFE OR NFFE AFFILIATE OF A PUBLICLY TRADED

CORPORATION

 

CRS FORM ACTIVE NFE
13 CLSA (S.E.A.) LIMITED HONG KONG NOT REQUIRED W-8BEN-E PUBLICLY TRADED NFFE OR NFFE AFFILIATE OF A PUBLICLY TRADED

CORPORATION

 

CRS FORM ACTIVE NFE
14 CLSA CAPITAL LIMITED HONG KONG LTL649.00041.ME.344 W-8BEN-E

W-8IMY

REPORTING MODEL 2 FFI CRS FORM REPORTING FI TYPE B INVESTMENT ENTITY

 

 

 

 

 

15 CLSA CAPITAL PARTNERS LIMITED HONG KONG NOT REQUIRED W-8BEN-E PUBLICLY TRADED NFFE OR NFFE AFFILIATE OF A PUBLICLY TRADED

CORPORATION

CRS FORM ACTIVE NFE
16 CLSA GLOBAL FINANCE LIMITED HONG KONG NOT REQUIRED W-8BEN-E PUBLICLY TRADED NFFE OR NFFE AFFILIATE OF A PUBLICLY TRADED

CORPORATION

 

CRS FORM ACTIVE NFE
17 CLSA CAPITAL PARTNERS (HK) LIMITED HONG KONG PMSX3Q.00000.SP.344 W-8BEN-E NON-REPORTING IGA FFI – CDCFFI CRS FORM REPORTING FI – TYPE A INVESTMENT ENTITY

 

 

18 CLSA GLOBAL MARKETS PTE. LTD. SINGAPORE NOT REQUIRED W-8BEN-E

W-8IMY

NON-REPORTING IGA FFI – CDCFFI CRS FORM REPORTING FI – TYPE A INVESTMENT ENTITY

 

 

19 CLSA SINGAPORE PTE LTD SINGAPORE LTL649.00025.ME.702 W-8BEN-E

W-8IMY

REPORTING MODEL 1 FFI CRS FORM REPORTING FI – CUSTODIAL INSTITUTION AND TYPE A INVESTMENT ENTITY

 

 

20 CLSA SINGAPORE HOLDINGS PTE. LTD. SINGAPORE NOT REQUIRED W-8BEN-E PUBLICLY TRADED NFFE OR NFFE AFFILIATE OF A PUBLICLY TRADED

CORPORATION

 

CRS FORM ACTIVE NFE
21 SETCLEAR PTE. LTD. SINGAPORE LTL649.00029.ME.702 W-8BEN-E

W-8IMY

REPORTING MODEL 1 FFI CRS FORM REPORTING FI – TYPE A INVESTMENT ENTITY

 

 

22 CLSA LIMITED – SYDNEY BRANCH AUSTRALIA NOT REQUIRED W-8BEN-E

 

PUBLICLY TRADED NFFE OR NFFE AFFILIATE OF A PUBLICLY TRADED

CORPORATION

 

 

 

23 CLSA AUSTRALIA HOLDINGS PTY LTD AUSTRALIA NOT REQUIRED W-8BEN-E

 

PUBLICLY TRADED NFFE OR NFFE AFFILIATE OF A PUBLICLY TRADED

CORPORATION

 

CRS FORM ACTIVE NFE
24 CLSA AUSTRALIA NOMINEES PTY LTD AUSTRALIA NOT REQUIRED W-8BEN-E PUBLICLY TRADED NFFE OR NFFE AFFILIATE OF A PUBLICLY TRADED

CORPORATION

 

CRS FORM ACTIVE NFE
25 CLSA AUSTRALIA PTY LTD AUSTRALIA NOT REQUIRED

 

W-8BEN-E

W-8IMY

PUBLICLY TRADED NFFE OR NFFE AFFILIATE OF A PUBLICLY TRADED

CORPORATION

 

CRS FORM ACTIVE NFE
26 CLSA AUSTRALIA SERVICES PTY LTD AUSTRALIA NOT REQUIRED

 

W-8BEN-E PUBLICLY TRADED NFFE OR NFFE AFFILIATE OF A PUBLICLY TRADED

CORPORATION

 

 

CRS FORM ACTIVE NFE
27 CLSA CAPITAL PARTNERS AUSTRALIA SERVICES PTY LTD AUSTRALIA NOT REQUIRED

 

W-8BEN-E PUBLICLY TRADED NFFE OR NFFE AFFILIATE OF A PUBLICLY TRADED

CORPORATION

 

 

CRS FORM ACTIVE NFE
28 CLSA INVESTMENTS LTD. CAYMAN ISLANDS NOT REQUIRED

 

W-8BEN-E PUBLICLY TRADED NFFE OR NFFE AFFILIATE OF A PUBLICLY TRADED

CORPORATION

 

 

CRS FORM ACTIVE NFE

 

 

 

29 CLSA INVESTMENT

CONSULTANCY SERVICES (SHANGHAI) CO LTD

CHINA NOT REQUIRED

 

W-8BEN-E PUBLICLY TRADED NFFE OR NFFE AFFILIATE OF A PUBLICLY TRADED

CORPORATION

 

 

30 CLSA INDIA PRIVATE LIMITED INDIA LTL649.00016.ME.356 W-8BEN-E

W-8IMY

REPORTING MODEL 1 FFI CRS FORM REPORTING FI – CUSTODIAL INSTITUTION

 

 

31 CLSA TECHNOLOGY & SERVICES LLP

 

INDIA NOT REQUIRED W-8BEN-E ACTIVE NFFE CRS FORM ACTIVE NFE
32 PT CLSA SEKURITAS INDONESIA INDONESIA LTL649.00017.ME.360 W-8BEN-E

W-8IMY

REPORTING MODEL 1 FFI CRS FORM REPORTING FI – CUSTODIAL INSTITUTION

 

33 CLSA SECURITIES JAPAN CO., LTD. JAPAN NOT REQUIRED W-8BEN-E PUBLICLY TRADED NFFE OR NFFE AFFILIATE OF A PUBLICLY TRADED

CORPORATION

 

CRS FORM ACTIVE NFE
34 CLSA SECURITIES KOREA LTD. KOREA LTL649.00037.ME.410 W-8BEN-E

W-8IMY

REPORTING MODEL 1 FFI CRS FORM REPORTING FI – CUSTODIAL INSTITUTION

 

35 CLSA SECURITIES MALAYSIA SDN. BHD. MALAYSIA NOT REQUIRED W-8BEN-E NON-REPORTING IGA FFI – CDCFFI CRS FORM REPORTING FI – TYPE A INVESTMENT ENTITY

 

36 CLSA (MAURITIUS) LIMITED MAURITIUS NOT REQUIRED W-8BEN-E NON-REPORTING IGA FFI – CDCFFI CRS FORM REPORTING FI – TYPE A INVESTMENT ENTITY

 

37 CLSA PHILIPPINES, INC.

 

PHILIPPINES LTL649.00031.ME.608 W-8BEN-E

W-8IMY

REPORTING MODEL 1 FFI CRS FORM Reporting FI – Custodial Institution
38 CLSA EXCHANGE CAPITAL, INC. PHILIPPINES NOT REQUIRED W-8BEN-E PUBLICLY TRADED NFFE OR NFFE AFFILIATE OF A PUBLICLY TRADED

CORPORATION

 

CRS FORM  Active NFE
39 CLSA SECURITIES (THAILAND) LIMITED

 

 

THAILAND LTL649.00030.ME.764 W-8BEN-E

W-8IMY

REPORTING MODEL 1 FFI CRS FORM REPORTING FI – CUSTODIAL INSTITUTION
40 CLSA (UK) UNITED KINGDOM LTL649.00033.ME.826 W-8BEN-E

W-8IMY

REPORTING MODEL 1 FFI CRS FORM REPORTING FI CUSTODIAL INSTITUTION

 

 

 

41 CORE NOMINEES LIMITED UNITED KINGDOM NOT REQUIRED W-8BEN-E PUBLICLY TRADED NFFE OR NFFE AFFILIATE OF A PUBLICLY TRADED

CORPORATION

 

CRS FORM ACTIVE NFE
42 SETCLEAR HOLDINGS B.V. NETHERLANDS NOT REQUIRED W-8BEN-E PUBLICLY TRADED NFFE OR NFFE AFFILIATE OF A PUBLICLY TRADED

CORPORATION

CRS FORM   Active NFE
43 CLSA AMERICAS, LLC

 

UNITED STATES NOT REQUIRED W-9 US FI CRS FORM  Active NFE
44 CLSA (AMERICAS) INVESTMENT LLC

 

 

UNITED STATES NOT REQUIRED W-9 US FI
45 SETCLEAR INC. UNITED STATES NOT REQUIRED W-9 US FI CRS FORM  Active NFE

Glossary

FATCA Glossary

 

“FFI” means foreign financial institution. It refers to a non-US financial institution. The FATCA legislation contains an extensive definition of FFI and includes entities such as banks, custodian institutions, investment funds and certain types of insurance companies.

 

“NFFE” An NFFE (non-financial foreign entity) is a non-US incorporated/established entity that does not meet the definition of an FFI (foreign financial institution) and includes:

  • listed or privately held operating or trading businesses
  • professional service firms
  • certain entities with a passive trade (ie, not an operating or trading business)
  • charitable organisations.

 

“Non-Reporting Financial Institution” means any Financial Institution that is:

  • a Governmental Entity, International Organisation or Central Bank, other than with respect to a payment that is derived from an obligation held in connection with a commercial financial activity of a type engaged in by a Specified Insurance Company, Custodial Institution, or Depository Institution;
  • a Broad Participation Retirement Fund; a Narrow Participation Retirement Fund; a Pension Fund of a Governmental Entity, International Organisation or Central Bank; or a Qualified Credit Card Issuer;
  • an Exempt Collective Investment Vehicle; or
  • a Trustee-Documented Trust: a trust where the trustee of the trust is a Reporting Financial Institution and reports all information required to be reported with respect to all Reportable Accounts of the trust;
  • any other defined in a countries domestic law as a Non-Reporting Financial Institution.

 

“Specified US person” means any US person other than:

  • a corporation the stock of which is regularly traded on one or more established securities markets for a calendar year;
  • any corporation which is a member of the same expanded affiliated group as a corporation the stock of which is regularly traded on one or more established securities markets for the calendar year;
  • any organisation exempt from taxation under US federal tax law or an individual retirement plan;
  • the United States or any wholly owned agency or instrumentality thereof;
  • any state, the District of Columbia, any US territory, any political subdivision of any of the foregoing, or any wholly owned agency or instrumentality of any one or more of the foregoing;
  • any bank incorporated and doing business under the laws of the United States (including laws relating to the District of Columbia) or of any state thereof;
  • any real estate investment trust;
  • any regulated investment company, or any entity registered with the Securities Exchange Commission under the Investment Company Act of 1940;
  • any common trust fund;
  • any trust that is exempt from tax or is deemed a charitable trust;
  • a dealer in securities, commodities, or derivative financial instruments that is registered as such under the laws of the United States or any state;
  • a broker;
  • any tax exempt trust under a tax exempt or public school annuity plan or governmental plan.

 

“US Citizen” refers to:

  • an individual born in the United States
  • an individual who has a parent who is a US citizen
  • a former alien who has been naturalised as a US citizen
  • an individual born in Puerto Rico
  • an individual born in Guam
  • an individual born in the US Virgin Islands.

 

“US person”refers to:

  • a citizen or resident of the United States
  • a partnership created or organised in the United States or under the law of the United States or of any state, or the District of Columbia
  • a corporation created or organised in the United States or under the law of the United States or of any state, or the District of Columbia
  • any estate or trust other than a foreign estate or foreign trust (see Internal Revenue Code section 7701(a)(31) for the definition of a foreign estate and a foreign trust)
  • a person that meets the substantial presence test
  • any other person that is not a foreign person.

 

 

CRS Glossary

 

“Active NFE” means Active Non-Financial Entity

  • less than 50% of the NFE’s gross income for the preceding calendar year or other appropriate reporting period is passive income and less than 50% of the assets held by the NFE during the preceding calendar year or other appropriate reporting period are assets that produce or are held for the production of passive income;
  • the stock of the NFE is regularly traded on an established securities market or the NFE is a Related Entity of an Entity the stock of which is regularly traded on an established securities market;
  • the NFE is a Governmental Entity, an International Organisation, a Central Bank, or an Entity wholly owned by one or more of the foregoing;
  • substantially all of the activities of the NFE consist of holding (in whole or in part) the outstanding stock of, or providing financing and services to, one or more subsidiaries that engage in trades or businesses other than the business of a Financial Institution (FI), except that an Entity does not qualify for this status if the Entity functions (or holds itself out) as an investment fund, such as a private equity fund, venture capital fund, leveraged buyout fund, or any investment vehicle whose purpose is to acquire or fund companies and then hold interests in those companies as capital assets for investment purposes;
  • the NFE is not yet operating a business and has no prior operating history, but is investing capital into assets with the intent to operate a business other than that of a FI, provided that the NFE does not qualify for this exception after the date that is 24 months after the date of the initial organisation of the NFE;
  • the NFE was not an FI in the past five years, and is in the process of liquidating its assets or is reorganising with the intent to continue or recommence operations in a business other than that of an FI;
  • the NFE primarily engages in financing and hedging transactions with, or for, Related Entities that are not FIs, and does not provide financing or hedging services to any Entity that is not a Related Entity, provided that the group of any such Related Entities is primarily engaged in a business other than that of an FI; or
  • the NFE meets all of the following requirements:
    • it is established and operated in its country of residence exclusively for religious, charitable, scientific, artistic, cultural, athletic, or educational purposes; or it is established and operated in its country of residence and it is a professional organisation, business league, chamber of commerce, labour organisation, agricultural or horticultural organisation, civic league or an organisation operated exclusively for the promotion of social welfare;
    • it is exempt from income tax in its country of residence;
    • it has no shareholders or members who have a proprietary or beneficial interest in its income or assets;
    • the applicable laws of the NFE’s country of residence or the NFE’s formation documents do not permit any income or assets of the NFE to be distributed to, or applied for the benefit of, a private person or non-charitable Entity other than pursuant to the conduct of the NFE’s charitable activities, or as payment of reasonable compensation for services rendered, or as payment representing the fair market value of property which the NFE has purchased; and
    • the applicable laws of the NFE’s country of residence or the NFE’s formation documents require that, upon the NFE’s liquidation or dissolution, all of its assets be distributed to a Governmental Entity or other non-profit organisation, or escheat to the government of the NFE’s country of residence or any political subdivision thereof.

 

“Controlling Person” refers to a natural person with ultimate percentage ownership of 10% or more by vote or value over an entity. In cases where there are no such natural person with more than 10% ownership, the senior managing official who makes decision for the entity will be the controlling person.

 

“FI” Financial Institution

 

“Investment Entity” includes two types of Entities:

(i) an Entity that primarily conducts as a business one or more of the following activities or operations for or on behalf of a customer:

  • Trading in money market instruments (cheques, bills, certificates of deposit, derivatives, etc.); foreign exchange; exchange, interest rate and index instruments; transferable securities; or commodity futures trading;
  • Individual and collective portfolio management; or
  • Otherwise investing, administering, or managing Financial Assets or money on behalf of other persons.
  • Such activities or operations do not include rendering non-binding investment advice to a customer.

(ii) ”The second type of “Investment Entity” (“Investment Entity managed by another Financial Institution”) is any Entity the gross income of which is primarily attributable to investing, reinvesting, or trading in Financial Assets where the Entity is managed by another Entity that is a Depository Institution, a Custodial Institution, a Specified Insurance Company, or the first type of Investment Entity.

 

“Investment Entity located in a Non-Participating Jurisdiction and managed by another Financial Institution” means any Entity the gross income of which is primarily attributable to investing, reinvesting, or trading in Financial Assets if the Entity is (i) managed by a Financial Institution and (ii) not a Participating Jurisdiction Financial Institution.

 

“NFE” means any Entity that is not a Financial Institution.

 

“Non-Participating Jurisdiction” means a foreign Jurisdiction that is not a Participating Jurisdiction.

 

“Participating Jurisdiction” means a jurisdiction with which an agreement is in place pursuant to which it will provide the information required on the automatic exchange of financial account information set out in the Common Reporting Standard and that is identified in a published list.

 

“Passive NFE” means any: (i) NFE that is not an Active NFE; or (ii) Investment Entity described in subparagraph (b) of the definition of Investment Entity that is not a Participating Jurisdiction Financial Institution.

 

“Related Entity” An Entity is a Related Entity of another Entity if (i) either Entity controls the other Entity or (ii) the two Entities are under common control. For this purpose, control includes direct or indirect ownership of more than 50% of the vote and value in an Entity.

 

Reportable Account” means an account held by one or more Reportable Persons or by a Passive NFE with one or more Controlling Persons that is a Reportable Person.

 

“Reportable Jurisdiction” is a jurisdiction with which an obligation to provide financial account information is in place and that is identified in a published list.

 

Reportable Person” is defined as a “Reportable Jurisdiction Person”, other than:

  • a corporation the stock of which is regularly traded on one or more established securities markets;
  • any corporation that is a Related Entity of a corporation described in clause (i);
  • a Governmental Entity;
  • an International Organisation;
  • a Central Bank; or
  • a Financial Institution (except for an Investment Entity described in Sub Paragraph A(6) b) of the CRS that are not Participating Jurisdiction Financial Institutions. Instead, such Investment Entities are treated as Passive NFE’s.)

 

“TIN” means a Taxpayer Identification Number (or functional equivalent). The OECD has published a list of the acceptable Taxpayer Identification Number (TIN) formats and their alternatives.

 

“Tax residency” Your tax residency is the country where you are resident / registered for tax purposes. Each country has its own rules for defining tax residence. For more information on tax residence, please consult your tax advisor or the OECD AEOI portal.