Institutional onboarding tax declarations process & definition

Under Foreign Account Tax Compliance Act (FATCA) and Common Reporting Standard (CRS), we are required to determine the tax residence status of our customers. 

Please complete this tax declaration so that we hold accurate and up to date information about your entity’s tax residence status.

The tax declaration process includes:

General:

1. FATCA, CRS Classification: Identify your entity's classification under FATCA and CRS.

2. Tax Residence and TIN of the Institution: Determine your entity’s tax domicile and Tax Identification Number (TIN).

Specifically for Passive Non-Financial Foreign Entities (NFFE), please gather below information prior to proceeding:

• UBO/Controlling Person(s) Details: Name, Date of Birth, residential address, tax residence(s) & TIN(s)

These details simplify and ensure accuracy in tax reporting.

Define your entity under FATCA and CRS classifications

A “Non-Financial (Foreign) Entity’ or “NF(F)E” means an entity that is not a financial institution. 

There are two categories of NF(F)Es: Active NF(F)E and Passive NF(F)E.

I. Active Non-Financial Entity - An NFE is an Active NFE if it meets any of the criteria listed below:

• Active NFEs by reason of income and assets (i.e., less than 50% of its gross income from passive income and less than 50% of its assets are used to produce passive income for the previous calendar year);

• Start-up NFEs (incorporated within 24 months);

• Publicly traded NFEs;

• Governmental Entities, International Organisations, Central Banks, or their wholly owned Entities;

• Holding NFEs that are members of a non-financial group;

• NFEs that are liquidating or emerging from bankruptcy;

• Treasury centres that are members of a non-financial group; or

• Non-profit NFEs.

II. Passive Non-Financial Entity - means any:

• Entity that is not an Active NFE nor Financial Institution (see below definition); or

• Investment Entity located in a Non-Participating Jurisdictions and managed by another Financial Institution

III. Financial Institution - any entity that is a:

• Depository Institution;

• Custodian Institution;

• Specified Insurance Company;

• Investment Entity, including:

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

     1. Trading in money market instruments (cheques, bills, certificates of deposit, derivatives, etc. and inclusive of Islamic), foreign exchange, exchange, interest rate and index instruments, transferable securities, or commodity futures trading;

     2. Individual and collective portfolio management; or 

     3. Otherwise investing, administering, or managing Financial Assets or money on behalf of other persons.

  2. an Entity where the gross income of which is primarily attributable to investing, reinvesting, or trading in Financial Assets where the Entity is managed by another Financial Institution.

IV. Direct Reporting NFFE - Direct Reporting NFFE is an applicable status under FATCA only. A Direct Reporting NFFE is a NFFE that elects to report directly to the U.S. Internal Revenue Service (IRS) certain information about its direct or indirect substantial U.S. owners (or that it does not have any such substantial U.S. owner). A Direct Reporting NFFE is required to register with the IRS to obtain a Global Intermediary Identification Number and to agree to comply with the provisions in the U.S. regulations regarding reporting information about its substantial U.S. owners.