Are you a tax subject in the US? Fill in a tax return
The aim of the United States FATCA (the Foreign
Account Tax Compliance Act) is to ensure that
United States tax subjects outside the USA send
tax returns to the United States tax authority – the
IRS. By virtue of this act, financial institutions will
forward information about customers who are
potential tax subjects in the United States to the
Dutch Tax and Customs Administration. The Dutch
Tax and Customs Administration will forward this
information to the IRS.
Are you a tax subject in the United States or do you
think you may be? If so, please read this leaflet
carefully. Here you will find information including
the indicators for a United States tax subject, the
consequences of the FATCA and what you can do
if you are a tax subject or potential tax subject.
In what circumstances are you a United
States tax subject?
To determine the tax liability of United States
citizens and residents, the IRS has drawn up
indicators that point to a possible tax liability. If
you are a potential United States tax subject, then
the financial institution will ask you to provide a
statement. If you appear to be a United States tax
subject information about your account will be
forwarded to the Dutch tax authorities, who will
send it to the IRS. You may be a United States tax
subject if you satisfy one or more of the following
criteria:
• You have a United States passport;
• You live in the United States;
• You were born in the United States;
• You have a United States accommodation or
postal address or telephone number;
• You make periodic transfers of money to the
United States;
• You have granted power of attorney to someone
with a United States address;
• You have a Per Address (P/A) in the United
States.
Enterprises and business customers will also be
tested by the Dutch financial institutions. FATCA
indicators for enterprises include, for example,
whether the enterprise is formed under United
States law or if there is a United States visitor or
postal address. In the case of enterprises engaged
in investment activities, it is established whether a
United States tax subject holds a share of at least
25%. There will be a further check as to whether
an enterprise is a financial institution. In such a
case, this must also itself comply with the FATCA
requirements and thus must identify United States
tax subjects and report their bank account details.
What will Dutch banks do?
Dutch financial institutions will test all their
customers against the FATCA indicators. The
institutions will adapt their systems, processes and
procedures accordingly, so that it is also immedia­
tely clear in respect of new customers whether the
financial institution is required to report via the
Nederlandse Vereniging van Banken The whys and wherefores of the new United States tax act – the FATCA
Dutch Tax and Customs Administration to the
United States tax authority.
The financial institution will then contact you to
request further information to be able to establish
any potential United States tax liability. If you
believe you have no United States tax liability you
may indicate this. This could be the case if, for
example, you are no longer a United States citizen
and you have a certificate to prove this.
Why are Dutch banks cooperating?
The FATCA is part of the global response to tax
avoidance. In this context, the Savings Tax Direc­
tive has been in force in Europe since 1 July 2005,
with the aim of making the collection of tax on
interest paid on savings in EU Member States more
efficient. Following negotiations between the
Ministry of Finance and the United States govern­
ment the agreement to exchange information
between the two countries embeds the implemen­
tation of the FATCA in Dutch law. As a result, all
banks in the Netherlands are required to comply
with the FATCA. Because of this agreement the
exchange of information will be effected via the
Dutch Tax and Customs Administration rather than
directly with the United States tax authority.
provisions. You can find the relevant information on
the website of the IRS. For tax advice specific to
your situation, you should contact your tax adviser.
You can find general information about the FATCA
on the website of the Dutch Banking Association
(www.nvb.nl).
•••
© January 2013
Nederlandse Vereniging van Banken
Gustav Mahlerplein 29-35
1082 MS Amsterdam
020 550 28 88
www.nvb.nl
When does the FATCA come into force?
In 2013, financial institutions will have to begin
checking existing and new customers. The banks
will start reporting their findings in 2015. They will
provide reports relating to the years 2013 and
2014. Thereafter the banks will provide reports on
an annual basis. The reason that information does
not need to be provided until 2015 is that time is
needed to adapt systems, processes and procedures.
What can you do?
If you think you are a potential United States tax
subject and you haven’t filed any tax return in the
USA, then click on the website of the United States
tax authority – the IRS (www.IRS.gov). For United
States tax subjects that have failed to comply with
their obligation to make tax declarations over
previous years and that now report to the IRS, the
United States has drawn up voluntary disclosure
Nederlandse Vereniging van Banken The whys and wherefores of the new United States tax act – the FATCA