What is FATCA agreement?
Foreign Accounts Tax Compliance Act known as “FATCA” approved by the Senate of the United States of America and published by United States Internal Revenue Service (IRS) on March 18th, 2010. FATCA agreement, known as “Agreement Between the Government of the Republic of Turkey and the Government of the United States of America to Improve International Tax Compliance Through Enhanced Exchange of Information”, assigned between the Government of Republic of Turkey and the Government of the United States of America on July the 29th, 2015 and approved by The Grand National Assembly of Turkey (TBMM) on March 16th, 2016.
The countries that have signed exchange of information agreements (FATCA) with the United States of America (USA), would have to identify and report the existing and potential “Individual” and “Entity” US tax payers that matches the specified criteria’s within the scope of agreement. Similarly, under the agreement, United States of America will be subject to reporting to the other party country of the agreement.
Akbank's responsibility within the scope of FATCA
According to FATCA agreement, the financial entities that are resident in Turkey committed to reporting to National Revenue Administration (GİB) as the local authority.
We hereby would like to notify that AKBANK T.A.S. is committing to comply with all national and international laws and regulations including but not limited to FATCA agreement and regulations. Therefore, we are obliged to provide necessary information, documents and statements that are pointed in the agreement.
Who will be considered as a FATCA compliant individual or entity?
• Individuals; US citizens, individuals whose birthplace is US, US Green Card holders, individuals who has US address or a US phone number, individuals who gives regular payment order to transfer money to US.
• Entities; The entities with the US address, or established in US or have headquarter in US. Passive1 NFFE (Non-Financial Foreign entity) which controlled2 by at least one or more US person.
• Financial entities which holds financial accounts. (For instance, Banks or Investment companies)
[1] Passive NFFE is decribed in Annex-1 VI./Special Rules and Definitons Part: B.3. and B.4.
[2] The term “Controlling Persons” means the natural persons who exercise control over an Entity.
What kind of forms, information and statements should be submitted by our FATCA compliant customers?
The individual who is a US citizen or a US resident or a green card holder would be considered as “specified US person” and a US taxpayer. These individuals should declare their US taxpayer status by providing W9 form as their self-statement.
FATCA compliant individual but not a US taxpayer should declare their status by providing suitable W8 form.
What happens if the information, documents and statements required within the scope of FATCA are not submitted?
FATCA compliant customers will be considered as “U.S. Reportable Account” if they do not submitted suitable W series form.
According to FATCA agreement, the financial entities that are resident in Turkey, obliged to identify their customers tax status and report them to National Revenue Administration (GİB) as the local authority. Otherwise, these customers will be subject to %30 tax withhold on their U.S. sourced revenues.
However, Akbank T.A.S. does not have any withholding responsibility under Model I IGA (Inter Governmental Agreement). According to this model, any kind of tax deduction will be made by the US authorized entities
What kind of customer information Akbank T.A.S. will report to the National Revenue Service (GIB)?
• The name, address, and U.S. TIN of each Specified U.S. Person that is an Account Holder of such account and, in the case of a Non-U.S. Entity that, identified as having one or more Controlling Persons that is a Specified U.S. Person, the name, address, and U.S. TIN (if any) of such entity and each such Specified U.S. Person,
• The account number (or functional equivalent in the absence of an account number),
• The account balance or value (including, in the case of a Cash Value Insurance Contract or Annuity Contract, the Cash Value or surrender value) as of the end of the relevant calendar year or other appropriate reporting period or, if the account was closed during such year, immediately before closure
Additional information might be subject to report on following years.
Where the detailed information can be found about the agreement and FATCA?
Please refer to the following links below for the original agreement.
http://www.gib.gov.tr/fileadmin/haberler/FATCA/FATCA_%DDngilizce.pdf
For IRS official FATCA web page, please refer to below link.
https://www.irs.gov/businesses/corporations/foreign-account-tax-compliance-act-FATCA
What is Akbank’s FATCA status and GIIN number?
We hereby would like to notify that AKBANK T.A.S. is committing to comply with FATCA obligations and is registered on IRS website as LEAD FI OF AFFILIATED GROUP with following status: Reporting Model 1 FFI
Its assigned global intermediary identification number (GIIN) is 08G46B.00000.LE.792 and GIIN for Malta branch is 08G46B.00000.BR.470.
Who is FATCA responsible person?
FATCA RESPONSIBLE OFFICER: SİNAN TIRPAN
E-MAIL: sinanhuseyin.tirpan@akbank.com
POINT OF CONTACT: BESTE SEZER
E-MAIL: beste.sezer@akbank.com
Common Reporting Standard (“CRS”)
Countries have signed an international partnership in order to prevent tax losses. This agreement named as "Common Reporting Standard" (“CRS”) and was publicly announced by the OECD on February 13, 2014. There are more than 100 countries committed to implementing CRS and Turkey is among these countries.
In accordance with international agreements on information exchange signed in the framework of CRS, financial institutions in Turkey have the responsibility of requesting specific information on account holders’ tax residency and reporting this information to the Turkish Revenue Administration.
Competent authority in Turkey in terms of implementing CRS is the Ministry of Treasury and Finance. It is a legal obligation for financial institutions to ensure compliance with regulations under the CRS. All financial institutions which responsible for reporting are obliged to share the requested information in the same format with the Ministry of Treasury and Finance. The countries with which this information will be shared by the Revenue Administration are decided by international agreements.
A Guide on Residency and Due Diligence has been prepared by the Ministry of Treasury and Finance. CRS legislation in Turkey has begun to be implemented on 1 July 2017 with an official letter sent from the Ministry of Treasury and Finance to the financial institutions.
The latest document shared by the Ministry of Treasury and Finance on the subject can be accessed at the address below. In this guide, it is explaining that which financial information of the clients who are resident outside of Turkey or has international relationship will be shared with which countries.
https://gib.gov.tr/finansal-hesap-bilgilerinin-vergi-konularinda-karsilikli-olarak-otomatik-degisim-standardi-rehberi
Besides, you can visit the web address below for more information about the countries that have signed the international agreement and are became CRS participant.
http://www.oecd.org/tax/automatic-exchange/international-framework-for-the-crs/exchange-relationships/