|What is FATCA?
||The Foreign Account Tax Compliance Act (FATCA) requires non-US financial institutions to identify which accounts are held by US taxpayers.
Information about these accounts must be reported annually to the US Inland Revenue Service via the appropriate local tax authority such as the Australian Taxation Office (ATO).
|Why is this being introduced?
||FATCA aims to deter tax evasion by US taxpayers who hold certain types of financial accounts outside the US but fail to declare these accounts to the US tax authorities.
|What is AMP doing about it?
||AMP, as a leading provider of wealth management services, takes extremely seriously its obligations to its customers and investors and in particular requirements to comply with local and international laws. As a consequence, AMP has been preparing for the commencement of FATCA for some time, and expects to be fully compliant by the relevant due dates.
|When does it start?
||The obligation to collect information about new customers’ US tax status starts on 1 July 2014. Additional obligations will come into effect progressively over the next three years.
|What does FATCA apply to?
||FATCA applies to all non-US financial institutions offering bank or deposit accounts, investment funds, custodial accounts and certain insurance accounts.
Certain products that are deemed to be low risk vehicles for tax evasion are excluded from the regime, e.g. superannuation products.
|How will I know if I, or an entity I am associated with, is a US citizen or resident for US tax purposes?
The US IRS provides a broad definition of a US citizen or resident for US tax purposes (US taxpayer). It may include:
- anyone born in the US (who hasn’t renounced their citizenship);
- anyone living in the US;
- a person who has worked or is working in the US;
- US passport holder; or,
- US companies, trusts and partnerships for US tax purposes.
If you are unsure if you, or an entity with which you are associated, may be a US taxpayer, it is recommended that you seek specialist tax advice.
In addition, AMP is required to identify and report on accounts held by:
- certain companies, where individual shareholders who own, directly or indirectly, more than 25% of the company's issued capital are US citizens or resident for tax purposes;
- trusts where an individual who controls the trust or trustee or is a beneficiary is a US citizen or resident for tax purposes; and,
- partnerships which are controlled by US citizens or residents for tax purposes.
|How does it affect me?
Those products impacted by FATCA will have their application forms updated with a mandatory question for all customers to answer about whether they or the investing entity are a US tax payer or has major shareholders, controlling persons or beneficiaries that are US tax payers.
- If you are not a US taxpayer, you will need to answer accordingly and there is no further impact.
- If the investing entity is not a US taxpayer and has no major shareholders, controlling persons or beneficiaries that are US taxpayers, you will need to answer accordingly and there is no further impact.
- If you are a US taxpayer or the investing entity is a US taxpayer you will need to answer accordingly and provide additional information such as your US tax or social security number, known in the US as a tax identification number (US TIN) or employer identification number (US EIN). If you don’t know your US TIN/EIN or you don’t have it at the time of application, it can be provided at a later date. If you are associated with an entity that is a non-US Financial Institution you will be required to provide either its Global Intermediary Identification Number (GIIN) or confirmation of its FATCA status. If you don’t know either its GIIN or FATCA status or you don’t have them at the time of application, they can be provided at a later date.
- If you are associated with an investing entity that is a non-US tax payer but has major shareholders, controlling persons or beneficiaries that are US tax payers you will need to provide additional information related to those tax payers such as their names, addresses and US TINs. If you don’t know the US TIN or you don’t have it at the time of application, it can be provided at a later date.
It is mandatory for you to provide us with the required information for FATCA compliance. If you do not do so and do not respond to further enquiries, AMP is obliged by law to report the account details to the local tax authority such as the ATO. Existing customer accounts will also be assessed and reported as required.
|I need more information
Further information is available at:
For domestic clients:
If you have any questions about this update or have any questions about your AMP Capital investments, please contact your Account Manager or our Client Services Team on 1800 658 404, between 8.30am and 5.30pm (Sydney time) Monday to Friday.
For international clients
If you have any questions about this update or have any questions about your AMP Capital investments, please contact us on email@example.com or your Account Manager.