Foreign Account Tax Compliance Act (FATCA)
Useful information about FATCA
Icon expand What is it?
The Foreign Account Tax Compliance Act (FATCA) is United States legislation passed in March 2010. It requires non-US financial institutions to provide reports to the US regarding their customers who are ‘US persons’ for US tax purposes and who hold accounts with the financial institution. US financial institutions will also have separate reporting obligations.
The UK and US Governments have entered into a reciprocal agreement, under which NatWest will report US customers to their local tax authority and not directly to the US IRS. The local tax authority is responsible for sharing this information with the IRS and the bank will play no part in this process.
Icon expand Need help with the Tax Status Declaration Form?
Icon expand What is the impact on NatWest
Each year financial institutions must report information on all financial accounts (for example, current accounts, savings accounts, deposit accounts, custodial account, certain insurance policies and interests in investment funds) held directly or indirectly by ‘US persons’. As a result NatWest will review its customers, to ensure all accounts are correctly identified and reported, where required.
NatWest must review its customers, to ensure all accounts are correctly identified and reported, where required. This is because under FATCA, financial institutions must each year, report information on all financial accounts (for example, current accounts, savings accounts, deposit accounts, custodial accounts, certain insurance policies and interests in investment funds) held directly or indirectly by ‘US persons’
Icon expand Will I be affected
We will be undertaking a review of our customers, as required by the regulations, to understand who is (and is not) a ‘US person’ for US tax purposes.
The term ‘US person’ includes, but isn’t limited to, the following:
· A citizen of the US, including any person born in the US but living in another country (who has retained their US citizenship).
· A person living in the US, including US Green Card holders.
· Certain people who spend a significant number of days in the US each year.*
· US corporations, US partnerships, US estates and US trusts.
*To better understand what is meant by ‘certain’ people’ and ‘significant’ number’, please refer to our Glossary.
Icon expand What does being a ‘US person’ mean for me?
Rest assured that being classified a ‘US person’ will not affect your day-to-day banking service, but will help us identify customers whose account details may need to be shared with their local tax authority. If you’re identified as a ‘US person’, we’ll write to you for self-certification.
If you’re an existing NatWest customer, you may need to provide specific documentation, so we can apply the right FATCA classification to your accounts. If you are classified as a ‘US person’, we will be required to report information about you and your accounts to your local tax authority, every year.
Please note that NatWest cannot offer any tax advice about FATCA, and we recommend you contact a professional and independent tax advisor to discuss your personal tax situation.
Icon expand What does being a ‘non-US person’ mean for me?
FATCA will have minimal impact on most customers, who won’t need to take any action. However, NatWest may still contact you to confirm your status as a ‘non-US person’.
Icon expand What does being a ‘US person’ mean for my entity?
If your entity is classified as a ‘US tax person’ for tax purposes, we must pass on details of the entity’s account(s) to the relevant tax authority.
UK Crown Dependencies and British Overseas Territories
Icon expand About the legislation and agreements
The UK Crown Dependencies and British Overseas Territories have all agreed to share tax information with the UK government. This will allow for the automatic exchange of tax information for UK taxpayers.
See our Glossary for a list of the UK Crown Dependencies and British Overseas Territories.
Icon expand What is the impact on NatWest
Classification of new customers’ tax residency came into effect on July 2014. The automatic exchange of information is not scheduled to start until 2016, in order to give banks and other financial institutions time to build and test their systems for exchanging information.
Icon expand Where can I get more information?
To find out more about UK Crown Dependencies and Overseas Territories Legislation, visit your local tax authority website.
We are here to help, but please be aware that NatWest cannot offer any tax advice. We recommend you contact a professional and independent tax advisor to discuss your personal tax situation.