FATCA & CRS

Information on FATCA

FATCA stands for the Foreign Account Tax Compliance Act, which is American legislation intended to combat tax evasion on the part of US taxpayers holding funds outside the United States (US). Under the FATCA, all financial institutions worldwide have to report information about their American customers.

The Netherlands have entered into an intergovernmental agreement with the US. As of 1 July 2014, Yapı Kredi Bank Nederland is therefore required as a financial institution in the Netherlands to report American taxpayers’ account information to the Dutch tax authorities each year. The Tax and Customs Administration of the Netherlands then exchanges this information with the US tax authorities under the bilateral tax treaty between the Netherlands and the US.

You are liable to pay tax to the US in the following cases:

• if you have an American passport;
• if you live in the US;
• if you were born in the US.

You may also be liable to pay tax to the US if:

• you have a certain type of US green card; or
• you comply with the substantial presence test. This means that you were physically present in the US for 31 days in the current year and 183 days in the three-year period comprising the current year and the two immediately preceding years.

More information on the FATCA is available on the website of the Dutch Banking Association (NVB): https://www.nvb.nl/english/fatca/ or via the customer service department of Yapi Kredi Bank Nederland.

 

Information on CRS

Your place of residence or location of registered office for tax purposes

As of 2017, the Dutch government will automatically exchange financial data of companies and people from over 90 countries in an effort to tackle tax evasion. This means that all financial institutions in the Netherlands have a legal obligation to verify whether their customers are required to pay taxes abroad as of 2016. New customers, and existing customers if there is reason to do so, will therefore be asked to provide a declaration on their place of residence or location of registered office for tax purposes.

Yapi Kredi Bank Nederland N.V.’s role

The exchange of tax data between countries is enshrined in law. This means that Yapi Kredi Bank, like all other financial institutions in the Netherlands, is obliged to always ask new clients for a declaration concerning their place of residence or location of registered office for tax purposes together with the tax identification number of the country in which they reside or have their registered office. If you are an existing customer, a different rule applies: in this case Yapi Kredi Bank must ask about your place of residence or location of registered office for tax purposes if there is a concrete reason to do so, for example if you move to another country or if you open an account for which additional data are needed.

How do you determine your place of residence or location of registered office for tax purposes?

Each country has laws in place that determine whether you are a private resident who must pay taxes or when your organization is classified as officially registered there for tax purposes. These laws and regulations differ per country. In the Netherlands, the Tax and Customs Administration of the Netherlands determines your place of residence for tax purposes or your company’s registered office for tax purposes.

Important facts for the assessment of private individuals include but are not limited to: where you live or reside for the majority of your time; where your partner and/or children live; where you work; where your physician is located; and where your insurance policies apply. Most people live at a single address. However, if you have two or more permanent addresses of which one is in a different country, then you may also be regarded as a resident of a foreign country. In most cases, this does not mean that you will pay double taxes. This is because the Netherlands has a tax treaty with a very high number of countries. Your tax advisor can provide more information on this topic.

Important facts for the assessment of organizations include but are not limited to: where the most important business decisions are taken; where do the board members work and meet; and where does the accountancy take place. The legal form of the organization also plays a role. Whether your organization is or is also registered in another country for tax purposes depends on the law in that other country as well as on other facts and circumstances.

If you do not know what your place of residence for tax purposes is, where your organization is registered for tax purposes, or what the tax consequences are, then you can contact the Tax and Customs Administration of the Netherlands or your tax adviser for more information.

What does this mean for you?

In certain cases, we may ask you to give a declaration on your place of residence for tax purposes or on where your organization for which you are authorized to sign as a representative is registered. For example, this may be the case when you open an account, when you have a foreign address or phone number, or when your organization was founded under foreign law.

In the case of certain organizations, we may ask about the place of residence for tax purposes of the ultimate stakeholder(s).

If you do not want to cooperate with the request for information, then unfortunately Yapi Kredi Bank is not permitted to open an account for you or your organization. In that case, we are also legally required to submit your data to the Tax and Customs Administration of the Netherlands.

More information

For more information on your place of residence or location of registered office for tax purposes, please contact the Tax and Customs Administration of the Netherlands or your tax adviser. Each government determines which rules it enforces and your tax advisor/service can help you to determine your place of residence or location of registered office for tax purposes.