JSC ISBANK, in order to comply with the requirements of the US Law on Taxation of Foreign Accounts of US Tax Residents (hereinafter — FATCA), registered on the website of the US Internal Revenue Service (hereinafter — IRS), having received the status of a participating financial institution (Participating FFI). JSC ISBANK was assigned the Global Identification Number (GIIN) 4M9NNU.00012.ME.643″ Participating FFI status implies full compliance with FATCA requirements.
The US Law on Taxation of Foreign Accounts (Foreign Account Tax Compliance Act, FATCA) is designed to limit and prevent tax evasion through foreign transactions by US citizens. FATCA came into force on July 1, 2014. In the Russian Federation, this requirement is regulated by Federal Law No. 173-FZ on 28.06.2014.
According to FATCA requirements, foreign financial institutions must notify the IRS, which is authorized by the government to be responsible for collecting taxes and implementing legislation, directly or through local tax authorities about financial accounts opened by US taxpayers or any legal entities in which the US taxpayer has a significant ownership stake.
In case of non-compliance with FATCA requirements, a foreign financial institution and its clients will be taxed at the rate of 30% of transactions of a certain type made from sources in the United States, and will also be at risk of termination of correspondent relations with counterparties.
Standard for automatic exchange of information on financial accounts (Common Reporting Standard, hereinafter — CRS), developed by the OECD (Organization for Economic Cooperation and Development) is aimed at preventing global tax evasion using offshore jurisdictions and ensuring transparency of information.
On May 12, 2016, the Federal Tax Service of Russia, on behalf of the Russian Federation, signed a multilateral agreement of competent authorities on the automatic exchange of financial information and confirmed its intention to start exchanging information for 2017 in 2018.
Currently, the Tax Code of the Russian Federation has been supplemented with provisions (Federal Law No. 340-FZ of 27.11.2017), according to which Russian financial market organizations are required to identify clients who are tax residents of foreign states (territories) and submit data on such clients and their accounts to the Federal Tax Service of Russia, and clients, in turn, are required to provide this information at the request of a financial institution.
JSC ISBANK does not provide its clients with consulting services on determining tax residency in accordance with FATCA and CRS requirements. On this issue, you can contact a tax consultant or get acquainted with information on tax residency for different countries on the portal of the Organization for Economic Cooperation.
In order to confirm your tax residency, an employee of JSC ISBANK may ask clarifying questions, as well as ask you to fill out a self-certification form.
