FATCA

What is FATCA and how does it affect us?

1. What is FATCA?

It is an Extraterritorial Law promulgated by the President of the United States of America on March 18, 2010. Translated into Spanish as the Law on Foreign Account Tax Compliance ( Ley de Cumplimiento Fiscal de Cuentas en el Extranjero). Through this regulation the US government It requires identifying through the due diligence process the clients with new products or pre-existing clients that coincide with the US person terminology. (US Person), and be reported to the US Internal Revenue Service. (IRS).

2. When did the Law come into force?

In the Dominican Republic it became effective as of July 1, 2014 for a Physical Person and as of January 1, 2015 for a Legal Entity.

3. To whom does FATCA apply?

FATCA applies to:

Citizens of the United States, by birth or naturalization.
All signatories or US related.
Tax residents (bearers of a "Green Card" or meet the requirement of substantial presence greater than 183 days in the last 3 years).
Legal entity incorporated in the United States or in accordance with the legislation of the United States.
Legal person with passive income who has at least one shareholder considered as a US person with a shareholding greater than or equal to 10% of the company.

4. What should I know about Social Security and what happens if as a US Person I do not know my Tax

To obtain information and be instructed in the Social Security requirement, you must go to the IRS website: https: //www.irs.gov/en/individuals/international-taxpayers/taxpayer-identification-numbers-tin

5. What are the main obligations of the Financial Institutions?

Identify and document US clients that comply with the conditions established by the FATCA Law.
Report to the IRS, information on new US clients and pre-existing accounts (before the Law came into effect) at the Institution.

6. What would happen if, as a US Person, I refused to comply with FATCA?

If you decide NOT to complete the documentation required by FATCA you can not start a business relationship with any Financial Institution. This considering that as of the entry into force of the Law, the opening of accounts to Americans who refuse to comply with the regulation is not allowed.

In the case of having pre-existing accounts, if you refuse to complete the required documentation, the institution must classify and report it under the recalcitrant client terminology.

7. What is a recalcitrant client?

It is the one who refuses to be documented under the requirements of the Law, refusing to complete the forms and authorize sharing information with the IRS.

8. How do I comply with FATCA?

People Physics:

Citizen or Resident of the USA - You must complete Form W-9 and provide a copy of Social Security or other valid US identification. (Passport or Permanent Resident Card)
Person who presents evidence without being a US Citizen or Resident - You must complete the W-8BEN form.
Accounts with Linked and / or Proxies - If you are a citizen or resident of the United States, you must complete the W-9 form, and the Non-US Form W-8BEN.

Legal Persons:

Entities Incorporated in the USA - Complete the W-9 form.
Entities Constituted outside the US - All entities must indicate if they are active or passive entities according to their income at the time of filling out the "Application Opening Personal Moral Account Form".
In the event that the entity is classified as a Passive Entity - it must complete the W-8BEN-E form, provided that it has a US shareholder (s) or shareholders with more than 10% participation in the entity, indicating the information requested from them.

9. Does FATCA affect non-Americans?

We will be in need of requesting more information if as a client you have any of the following indications:

a) Identification of any account holder who is a resident or American citizen.

b) Have a US postal address associated with the account. (either a residence address or correspondence address).

c) Figure USA as the place of birth of the account holder.

d) A mailing address in the US or a postal address to which to redirect US correspondence. associated to the account.

e) A power of attorney in favor of a person with a postal address in the USA.

f) Periodic transfer orders to a US account or that orders are received from a US address.

g) A telephone number in the USA

10. For which products does FATCA apply?

It applies to all passive products, regardless of the type of client (Physical Person or Legal Entity).

11. What happens with the accounts opened before the entry into force of the FATCA Law?

These accounts go through a Due Diligence process to identify whether to apply and report according to the FATCA law. If so, the Institution will contact you to expand your information and complete or update the required FATCA documentation.

12. Is the Institution in the faculty to offer me advice about the Law?

As a Financial Institution, we are able to provide general information about the FATCA Law; however, we are not in the power to provide tax advice on the Internal Revenue Code of the United States.

We recommend consulting with people duly certified by the competent authorities of the United States of America to provide tax advice to the public.

13. Can Tirep Finances provide me with the forms required by FATCA?

Customers can approach any Tirep Finances business office where they will be provided, upon request. Additionally, you can go to the bottom of the page where the forms and instructions are in the English language (official form) and in Spanish (as a reference guide).

14. Is Tirep Finances the only financial institution subject to FATCA?

No. At the global level, most banks and financial institutions have committed to comply with the FATCA Law, although the Intergovernmental Agreement with which they adopt the regulations may vary.

15. What is the FATCA situation in the Dominican Republic?

To improve international tax compliance and implementation of the FATCA Law, the governments of the Dominican Republic and the US signed an Intergovernmental Agreement (IGA, Model 1) on September 15, 2016. After adapting the institution's processes and documentation of customers who apply start as of July 1, 2014 for customers Physical Persons and January 1, 2015 Legal Entities.

16. Where can I find more information?

In the websites of the Treasury and the Tax Authority and the Social Security Administration of the United States:

On the web pages of the Superintendency of Banks:

For any additional questions, please contact the following numbers:

+1(829) 696-6434 / +1(849) 914-4250 / +1(305) 907-7198

Reference Guide in Spanish

Instructions Manual in Spanish

English version instructions

Get information about regulations and compliance procedures