What are FATCA and CRS and do they affect me?
What is FATCA?
FATCA (Foreign Account Tax Compliance Act) is a legislation meant to help counter tax evasion in the US.
CRS (Common Reporting Standard) is the global non-US equivalent of FATCA.
Banks have to report at the end of the year (December 31) balances of reportable bank account holders to the tax authorities. As Adyen holds a banking license, the FATCA/CRS reporting obligation applies also to any bank held (or to be held) by Adyen.
Note: If you’re a European entity or subsidiary, you must submit a self-certification form. This will determine your FATCA and/or CRS reporting status.
Who is reportable for FATCA?
FATCA reporting only applies when your organization or your controlling person(s) are considered a US person (see below), or if your company isn’t an Active NFFE (see below).
Tip: Find more about FATCA here.
Tip: Find more about CRS here.
CRS will only have implications for your organization when your organization has more than one tax residency (or country/region of residence) or if your company is not an Active NFE.
You're considered a US person if you’re (or your business is) a citizen, resident, partnership, or corporation located or organized in the United States, or if you operate under the law of the United States.
Additional conditions will apply for trusts and estates of decedents of US persons.
Note: Adyen’s self-certification only applies to the accountholder, which is the legal entity. This means that you should only indicate your entity is a US person if this entity is domiciled in the US.
Tax residency is determined according to the specific rules of the jurisdictions in which an entity may be tax resident. Consult your legal counsel or tax adviser for information about your tax residency status.
General information regarding tax residency is available on the OECD website. For each tax residency, you’ll have a TIN (Unique Taxpayer Reference). It depends on the country/region where this number can be found and how it’s called. Contact your tax adviser to find your TIN(s).
For FATCA, an Active NFFE is an active non-financial foreign entity. For CRS, an Active NFE is an active non-financial entity.
Both terms can be considered equivalent. It means that your business is not considered as a passive or financial institution. If you’re unsure of your entity status, contact your legal counsel or tax adviser.