Overview On FATCA – Frequently Asked Questions
FATCA stands for Foreign Account Tax Compliance Act (FATCA). It is a legislation to help counter tax evasion in the United States of America.
FATCA creates a new information reporting and withholding regime for payments made to certain foreign financial institutions and other foreign entities. The FATCA requirements came into effect on 1 July 2014.
as-Salihin Trustee Berhad is committed to be FATCA compliant. In this regard, whenever you meet our Islamic Estate Planner (IEP/Agent) for products or services, we may request for further information and/or documentation about your FATCA status.
As part of being FATCA compliant, we will also be reviewing our pre-existing customer base to confirm our customers’ FATCA status. Where necessary, we may have to contact our customers for further information and documentation.
FATCA legislation will affect both Individual and Corporate customers who are treated as “U.S Person” for tax purposes.
- U.S Citizen
- U.S Permanent Resident holding Green Card
- U.S Place of Birth
- U.S Resident / Mailing Address
- U.S Telephone Number
- Has a standing instruction to any U.S Account
- Grant a Power Attorney / Signatory Authority to any U.S Individual
- Subscribed to “Hold Mail” or “Care of “ using a U.S address as a sole address
- Entity created, registered or incorporated in U.S or under U.S law.
- Entity not created, registered or incorporated in U.S with a U.S Person holding more than 25% of its shares. The U.S Person holding the shares can be an individual or an entity.
Further information and documentation may be requested by as-Salihin to determine whether you are a U.S. person under FATCA. If required, we may contact you for further information and documentation.
FATCA will have minimal impact for most customers who are not a U.S person. There will be no action required, but if necessary, as-Salihin may still contact you for further information and documentation.
The minimum requirement of FATCA for new as-Salihin’s client is for as-Salihin to identify if the potential client is a U.S Person or if there are any U.S Indicia (Potential U.S Person) which may potentially classify the client as a U.S Person. This process of identification shall be established by the new client declaring his/her status in the FATCA Declaration Form (“FATCA Form”).
Therefore, each new client needs to complete and sign the FATCA Form which need to be submitted together with as-Salihin Instruction Form. The questions answered in the FATCA FORM will now be part of as-Salihin’s client due diligence process.
You may be asked to complete some U.S IRS forms (whichever relevant) and if required to provide some appropriate documentation. The forms are available in the U.S. IRS website.
You shall notify as-Salihin in writing within thirty (30) days of any change that affects your tax status in relation to FATCA under any laws, regulations or other agreement by or between governments.
You represent and warrant that you have provided to as-Salihin all documentation or other information as may be required by as-Salihin for compliance with FATCA and in connection with change in tax status and shall provide all required documentation or other information within seven (7) days of a request from as-Salihin in writing or otherwise.
We would like to seek your utmost cooperation by providing us your information and/or documentation for FATCA purposes should it be required. It is important that you respond to all requests in a timely manner.
If you are impacted by FATCA in any way, kindly contact your professional tax adviser or refer to the U.S IRS website, as as-Salihin cannot offer professional tax advice. Thank you for your understanding and continuous support.