Arabic

Foreign Account Tax Compliance Act (FATCA)

 

What is FATCA

(Foreign Account Tax Compliance Act)

The Foreign Account Tax Compliance Act (FATCA) is a U.S. law enacted in 2010 as part of the Hiring Incentives to Restore Employment (HIRE) Act. The purpose of FATCA is to detect and discourage abroad tax abuses through increased transparency and enhanced reporting. It requires Foreign Financial Institutions (FFIs) and certain other non-financial foreign entities to report the foreign assets held by their U.S. account holders, U.S. taxpayers or held by certain foreign entities in which U.S. taxpayers hold a substantial ownership interest. FATCA information is reported to the Qatari General Tax Authority (GTA) to execute the reporting to the Internal Revenue Service (IRS) as part of the Intergovernmental Agreement (“IGA”) Model “1” between the State of Qatar and the United States of America.

 

The impact of FATCA on CB customers

The existence of any of the following key signs indicates that the account is or may be subject to FATCA:

For Individuals:

  • U.S. Citizen or Resident;
  • U.S. Green card holder;
  • U.S. place of birth;
  • Current U.S. residence address or mailing address;
  • Current U.S. telephone number;
  • Standing instructions to transfer funds to an account maintained in the U.S.;
  • A current power of attorney or signatory authority granted to a person with a U.S. address;
  • An ‘in-care of’ address or a ‘hold-mail’ address that is the sole address the Bank has identified for the account holder;

For Corporate customers:

  • US institution / company;
  • Passive Non-Financial Foreign Entity with substantial US ownership.

 

Note:

According to articles of the Intergovernmental Agreement (IGA) between the State of Qatar and the Government of the United States, the customer holds full responsibility of providing correct true and accurate information and the customer should notify the bank in the event of any change in such information and complete the relevant FATCA Self-Certification Form.

Customers that are identified as reportable persons, i.e., U.S. account holders, U.S. taxpayers or held by certain foreign entities in which U.S. taxpayers hold a substantial ownership interest, will be subject to FATCA reporting.

On yearly basis those subject to FATCA reporting will be reported to the General Tax Authority in the State of Qatar.  The Local Tax Authorities will then exchange this data with the IRS (U.S.)

For more information on FATCA, please visit website of Internal Revenue Service (IRS): http://www.irs.gov

 

What information will be reported to the Local Tax Authorities?

The information reported to the Local Tax Authority (GTA) shall include account holder’s information such as :

  • Name
  • Address
  • Date of Birth
  • Place of Birth
  • U.S. Taxpayer Identification Number (TIN) or Social Security Number (SSN)
  • Account number
  • Account balance/Value and certain income, etc.

The Local Tax Authorities will then exchange this data with the IRS (U.S.)

Forms to be competed for FATCA

CB FATCA and CRS Self Certification Form (Individual)

CB FATCA and CRS Self Certification Form (Corporate)

CB FATCA and CRS Self Certification Form (Controlling Person)

Note

If your account information changes or where any information provided by you in the FATCA / CRS self-certification form becomes incorrect or invalid you are required to provide us with additional information / documentation to update your records with us. Under this requirement, you, as an account holder, must inform the Bank within 30 days of any such change in circumstances and complete a fresh FATCA / CRS self-certification form by logging into any of the available digital banking channels; RIB, MIB and CIB.