FATCA- The Foreign Account Tax Compliance Act

FATCA (The Foreign Account Tax Compliance Act), effective date 1 July 2014, is a USA law aimed at foreign financial institutions (FFIs) outside of the U.S.A to report information on the FFI’s USA accounts to American IRS (Internal Revenue Service).

Turkey has been included in “the list of countries agreed upon on principle” in the FATCA Model 1-A text as of 3 June 2014. Government of the Republic of Turkey and the Government of the United States of America have signed the “Agreement To Improve International Tax Compliance Through Enhanced Exchange of Information” on July 29, 2015 with reciprocal basis.

According to USA applications, individuals and legal entities who are designated as US Indicia, would be asked to complete some additional information and documentation. If you think you have the below mentioned features, we kindly ask that you fill out the necessary forms and complete the declerations by contacting your branch.”

For individual accounts (that meet at least one of the criterion below);

• U.S.A nationality,
• U.S.A place of birth,
• U.S.A residency,
• Having Green Card,
• Having double citizenship (one of the citizenship should be U.S.A),
• Having TIN/SSN (Tax Identification Number/ Social Security Number,
• Having U.S.A address or telephone number registered in the Bank.

 

For legal entities’ accounts (that meet all of the criterion below);

• Country of incorporation as U.S.A and not having tax exemption in the U.S.A,
• Having 25% or more shareholders with the above mentioned U.S.A criteria,
• Having U.S.A address or telephone number registered in the Bank.

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