Self-Certification Documentation
Self-Certification Documentation Common Reporting Standard And Foreign Account Tax Compliance Act
Introduction
Common Reporting Standard
The Common Reporting Standard (CRS) is a regulation developed by the Organisation for Economic Co-operation and Development (‘OECD’) for the automatic exchange of information between partner countries to fight tax evasion. It applies to each country that has committed to the CRS regulation and transposed it into its national law.
CRS requires Financial Institutions (FIs) located in a country that has committed to the CRS regulation, to identify non-resident clients and report information on them, to their local tax administrators, if they are located in a country that has also committed to the CRS. More information is available on the OECD website.
Foreign Account Tax Compliance Act
The Foreign Account Tax Compliance Act (‘FATCA’) is a United States (‘US’) federal law, which is aimed at combating tax evasion by US taxpayers holding accounts and other financial assets, outside of the US.
FATCA requires foreign financial institutions (FFIs), such as SG Kleinwort Hambros to identify and report information about financial accounts held by US persons to the US Internal Revenue Service (‘IRS’). More information is available on the IRS website.
What does this mean for SG Kleinwort Hambros Clients?
The implementation of automatic exchange of information is based on both of the actions as outlined below:
- Account holders and Controlling Persons (as defined in the CRS Self-Certification forms on this page; attachments below)must declare their tax residence on both a FATCA and CRS self-certification document, in the following cases:
- for any onboarding client;
- for any opening of a new account for an existing client, provided that there is not already valid FATCA and CRS self-certifications for this client,
- for any change in circumstances having a tax impact (e.g. change in tax residence or status).
- Financial institutions must report annually to their local tax authority’s, ‘non-resident’ and ‘US Person’ clients, their account balances and the financial income paid to them during the year.
The tax authorities of the participating countries that transmit this information to the tax authorities of the country of residence for tax purposes of the client who is the subject of this declaration.
Please find here the necessary CRS forms:
Please find the necessary FATCA forms:
- Form W-9, Request for Taxpayer Identification Number (TIN) and Certification
- Form W-8 BEN (Individuals)
- Form W-8 BEN-E (Entities)
- Form W-8 IMY, Certificate of Foreign Intermediary, Foreign Flow-Through Entity, or Certain U.S. Branches for United States Tax Withholding
- Form W-8 ECI, Certificate of Foreign Person's Claim That Income Is Effectively Connected With the Conduct of a Trade or Business in the United States
- Form W-8 EXP, Certificate of Foreign Government or Other Foreign Organization for United States Tax Withholding
Please contact you Private Banker, should you require further information.