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 Foreign Account Tax Compliance Act (FATCA)

FATCA overview 

The Foreign Account Tax Compliance Act (FATCA) is a US law enacted in 2010 as part of the Hiring Incentives to Restore Employment (HIRE) Act. It is aimed at foreign financial institutions (FFIs) and other financial intermediaries to prevent tax evasion by US citizens and residents through use of offshore accounts.

The purpose of the FATCA act is to detect and discourage abroad tax abuses through increased transparency, enhanced reporting, and strong sanctions.

Under FATCA, Foreign Financial Institutions (FFIs) are required to enter into disclosure compliance agreements with the U.S. Treasury and report to the Internal Revenue Service (IRS) information about financial accounts held by U.S. taxpayers, or held by foreign entities in which U.S. taxpayers hold a substantial ownership interest.

 
What is the impact of FATCA law on QNB customers?
 

QNB is committed to fully comply with FATCA regulations in all countries the bank has presence in (branches and subsidiaries). The new regulations affects banks and other financial institutions who may follow a different compliance approach than QNB. The bank may request the customer to provide additional data and fill certain forms (W9, W8-BEN, W8-BEN-E) in case if there is any US indicators identified as per FATCA regulations as follows:

For Individuals:
  • US citizen or resident
  • US place of birth
  • A current US residence address or mailing address
  • A current US telephone number
  • Standing instructions to pay amounts from the account to an account maintained in the US
  • A current power of attorney or signatory authority granted to a person with a US address
  • An ‘in-care of’ address or a ‘hold-mail’ address that is the sole address the FFI has identified for the account holder
For corporations:
  • US institution / company
  • Passive Non-Financial Foreign Entity with more than 10% US ownership 
Form W9:

Is a form issued by the Internal Revenue Service (IRS) used to obtain the information of the US citizen and disclose tax information to the IRS Department. The form includes other information such as the name, address and tax identification number of US citizens.

 
Form W8 - BEN:
 
Is a form issued by theInternal Revenue Services department used by non-US citizens who have indicators of being US citizens in order to confirm that they are non-US.
 
 
Form W8 - BEN - E:
  
Is a form issued by the Internal Revenue Services department used by foreign institutions to confirm their status under FATCA.
 
 
Note:
 

It should be noted, according to articles of the Intergovernmental Agreement (IGA) between the State of Qatar and the Government of the United States that, the customer hold the full responsibility of providing correct information and the customer should notify the bank in the event of any change in such information in accordance to the applicable principle of self-certification.

Based on that, in case you are a US Person Taxpayer (or representative) you are kindly requested to contact your nearest QNB branch/subsidiary, customer service officer or relationship manager to provide the necessary information and documentation for the same purposes.

For more information on FATCA, see the section on FATCA act in the website of Internal Revenue Service (IRS), http://www.irs.gov.
 

You may be contacted to provide further information or documentation in order to verify your tax status under FATCA.

If you have multiple relationships with different members of the QNB Group, you may receive more than one request for information. Should you have any further queries regarding FATCA/ Local legislation and your tax position, please contact a tax advisor, as QNB is unable to provide tax advice.

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