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FATCA

FATCA – Foreign Account TaxCompliance Act

FATCA is a legislation introduced in 2014 to help counter tax evasion in the US and prevent US persons from using Banks and other Financial Institutions to avoid taxation on their income and assets.

On an annual basis, Banks and other Financial Institutions are mandated to report the information on financial accounts held directly or indirectly by US persons. Banks are required to report the following information regarding US account holders: name, address, taxpayer identification number (TIN), and account balance.

FATCA applies to all Financial Institutions globally, and non-compliant Financial Institutions may face penalties. FATCA has been shown to be effective in increasing the amount of tax income received by the IRS while also discouraging tax evasion by US citizens and residents.

Frequently Asked Questions (FATCA)

UAE Ministry of Finance FATCA & CRS details

Key points:

FATCA applies to both individuals and Entities.
Foreign Financial Institutions must identify and report U.S. account holders.
Non-compliance with FATCA requirements can result in significant penalties, including a 30% withholding tax on U.S. -sourced income.

Tax Advice Important Note:

UAB is not authorized to offer tax advice. For any tax related questions, you are kindly advised to contact your professional tax adviser or refer to the US Internal Revenue Services (IRS) website

Which FATCA form should I fill?

For Non-U.S. Person Individuals

Form W-8BEN (Certificate of Foreign Status of Beneficial Owner for United States Tax Withholding and Reporting)
- Who should fill it out? - Non-U.S. individuals.
- Purpose: To certify that they are not U.S. persons and to claim benefits under an income tax treaty (if applicable).
- Form W-8BEN
- Form W-8BEN Instructions
For Non-U.S. Person Entities
Form W-8BEN-E (Certificate of Status of Beneficial Owner for United States Tax Withholding and Reporting (Entities))
- Who should fill it out? - Non-U.S. entities (such as corporations, partnerships, etc.).
- Purpose: To certify that they are not U.S. persons and to claim benefits under an income tax treaty (if applicable).
- Form W-8BENE
- Form W-8BENE Instructions
Form W-8EXP (Certificate of Foreign Government or Other Foreign Organization for United States Tax Withholding and Reporting)
- Who should fill it out? – Foreign governments, international organizations, and other tax-exempt organizations.
- Purpose: To certify that the entity is a foreign government, tax-exempt organization, or other qualifying foreign entity that is claiming exemption from withholding under the Internal Revenue Code.
- Form W-8EXP
- Form W-8EXP Instruction
Form W-8ECI (Certificate of Foreign Person’s Claim That Income Is Effectively Connected With the Conduct of a Trade or Business in the United States)
- Who should fill it out? – Non-U.S. persons receiving income that is effectively connected with a U.S. trade or business.
- Purpose: To certify that income received is effectively connected with a U.S. trade or business and to claim an exemption from certain types of withholding.
- Form W-8ECI
- Form W-8ECI Instruction
For U.S. Persons (Individuals / Entity)
Form W-9 (Request for Taxpayer Identification Number and Certification)
- Who should fill it out? -U.S. persons (including U.S. citizens and resident aliens).
- Purpose: To provide the U.S. Taxpayer Identification Number (TIN) and certify their tax status.
- Form W-9
- Form W-9 Instructions

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