FAQs about the Foreign Account Tax Compliance Act (FATCA)

This act was established to combat unreported and untaxed income of people who are liable for US income tax and hold assets in financial institutions of countries other than the USA.

On 01.07.2014.

The financial institutions:

• Collect specific information relevant to accounts held directly or indirectly by their clients who are tax residents of the USA.
• Report the information to the local tax authority every year.

The minimum information that financial institutions are obliged to report to the local tax authority regarding account holders is:

• Full name
• Address
• Tax identification number or social security number
• Account number
• Balance or value of the account at the end of the relevant calendar year or other corresponding period
• Any interest or other payments deposited into the account

A natural person who exercises direct or indirect control over a legal entity or a legal arrangement.

Usually it is the actual owner of the entity, i.e. the natural person who owns or controls, directly or indirectly, at least 25% of the entity.

FATCA affects all natural or legal persons who:

• Are US citizens or reside in the USA.
• Have a passport issued by the USA.
• Are considered US residents for tax purposes.
• Hold a green card.
• Have been born in the USA.
• Have set up a standing order for transfer of funds to an account held in the USA.
• Have granted power of attorney or signatory authority to a person with a US address.
• Have the following in the USA:

• A mailing address, PO Box or residential address.
• A phone number.
• An account in a financial institution.

You must declare:

• Full name / Corporate name
• Address
• Place of birth (for natural and controlling persons)
• Date of birth (for natural and controlling persons)
• Tax identification number or social security number
• Controlling person details (for actual owners and controlling persons)
• Type of legal entity (for entities)

Fill in the relevant Internal Revenue Service (IRS) forms and submit them along with the necessary supporting documents:

• The W-9 form.
• The W-8BEN form if you are a natural person.
• The W-8BEN-E form if you are a legal person.

Read the personal data notification.

Every year, the financial institutions are under the obligation to identify, collect and report specific information relating to their clients who are tax residents of the USA, according to the information and documents in their possession.

Eurobank:

• Is obliged to report your details, account balance and financial income if you have been recognised and identified as a reportable person, natural or legal, upon implementation of the due diligence rules.
• May withhold and pay 30% tax to the US Internal Revenue Service (IRS) on certain payments, such as revenues and/or gross income from the sale of assets that generate interest or dividends.