FATCA - Information in English
Foreign Account Tax Compliance Act
Due to a reciprocal tax agreement between the Norwegian Government and the United States of America, BN Bank has to, by decree, collect relevant tax information from all new customers. Hereunder place of birth, citizenship and tax liability. All Norwegian banks are decreed to collect this information, which in the future also will encompass other countries than the US.
Norway is the sixth country to sign a Foreign Account Tax Compliance Act (FATCA) intergovernmental agreement with the US. It is based on a United States federal law enacted in 2009, and obliges Norwegian financial institutions to identify taxpayers who may be American.
Likewise, there are similar obligations for US financial institutions when it comes to Norwegian taxpayers with assets in the United States. Information will only be sent through to the United States for amounts exceeding a certain size.
What does this mean for you as a customer?
As a retail customer, you will be asked about citizenship and to which countries you are liable to pay taxes. If you have to pay tax to the United States, necessary information will be sent through to Norwegian tax authorities. Final submission to American tax authorities is done from here.
Should you be contacted by the bank regarding this, it is important to answer all questions. Lack of response may be perceived as suspicious when it comes to possible tax liability. In cases like this a withholding tax from the US might get imposed on payments from American financial markets.
When it comes to corporate customers, the duty to report applies if the following criteria are met:
- The company is an investment company, meaning that more than 50% of its assets consist of securities and/or 50% of the income is from the securities/stock market.
- There are owners with a share of 25% or more, and one or more of these owners are American taxpayers.
Principally, what is relevant, is information on potential owners with tax liabilities to the US. Should you have any questions regarding FATCA, feel free to contact us at email@example.com.
More information on FATCA can be found on the website of the American IRS Tax Commission.