According to the model 2 content of the Foreign Account Tax Compliance Act (FATCA), which entered into force on 1st July 2014, “It is based on the principle that foreign financial institutions transfer information directly to the American Revenue Administration and carry out withholding as a result of bilateral agreements signed between US and foreign financial institutions” FATCA completed its registration on 21st January 2015.
In accordance with FATCA, all financial institutions in the world are obliged to provide information to the Internal Revenue Service (IRS) on account of certain criteria for US citizens and/or taxpayers.
Therefore, the actual person in our branches has made arrangements for the detection and reporting of US taxpayers’ legal entities between US taxpayers and directors or shareholders.
In order to determine the tax liability status of individuals, US authorities demand the following criteria to be taken into account.
In Natural Persons;
• Client must be born in the US,
• Client must be a US citizen,
• Client must be a US Green Card holder,
• Client must have a US taxpayer identification number (TIN / SSN),
• Client must have a US phone number,
• Client must provide a US resident address, mail box, or c/o address declaration,
• Client must have previous address in the US,
• A continuous transfer must be continuously made into an account in the US or transactions should be frequently made into an account in our bank from the US,
• Client’s proxy address (if any) must be from the US.
In Juridical Persons;
• The origin of institution must be in the US,
• Institution must have a US address or phone number registered in bank,
• Institution must not have any tax exemptions in the US,
• Company stakeholders with a stake of over 10% must be US citizens complying with the above natural person criteria,