Notice in respect of the FATCA Law and CRS Law
Under the International Government Agreements, concluded by all EU Member States and the US Foreign Account Tax Compliance Act ("FATCA Law"), adopted to implement an agreement between the United States ("U.S.") and the EU Member States governments on international tax compliance and an EU Directive on mandatory automatic exchange of information in the field of taxation (2014/107/EU), adopted to implement the OECD common reporting standard ("CRS Law"), we and the Financial Institutions, providing the financial accounts and payment services under the Legal Agreement for myPOS Service, as a data controllers, inform you that the following data will be collected and may be exchanged or otherwise processed for the purposes of the aforementioned laws (assuming they apply) and in accordance with them:
- Your name;
- Your address;
- Your country (or countries) of (deemed) tax residence;
- Your Tax Identification Number(s) issued by your country or countries of tax residence, and, where applicable, your U.S. Tax Identification Number (U.S. TIN);
- Your place and date of birth;
- Your account number (or substitute account number, identifying your funds held);
- Your account balance or value as at 31 December of any year during which the account is held;
If you qualify as a specified U.S. person under FATCA Law and/or as a reportable person under CRS Law and assuming the FATCA Law and CRS Law impose obligations on the Financial Institutions (in either case, as a "Reportable Account Holder"), this information will be automatically exchanged by the respective Financial Institution, as a reporting financial institution under these laws, with the local tax authorities in the home member state of the respective Financial Institution. The latter will exchange this information with the U.S. Internal Revenue Service if FATCA Law applies and/or, if CRS Law applies, with the competent authority or authorities of your respective country or countries of tax residence that are participating jurisdictions under CRS Law.
The information listed above will be exchanged with the local tax authorities in the home member state of the respective Financial Institution for any calendar year during which you are or become a Reportable Account Holder (at the latest on 30 June of the subsequent calendar year). Such data will consequently continue to be processed by us and the Financial Institution designated in your Legal Agreement for myPOS Service until it is no longer necessary for the purposes for which they were processed. The first reporting is scheduled for April 2017 for the accounts balances as of 31st of December 2016.
Under FATCA and CRS Laws, you are obliged to provide any additional information that might be required from time to time by the Financial Institutions to apply these laws. Failure to do so in time may give rise to a reporting by the respective Financial Institution of your information to the local tax authorities which will in turn exchange this information with the authorities mentioned above. You have the right to access the information that is exchanged with the local tax authorities and, as the case may be, a right to rectify this information. To exercise these rights, you should proceed in accordance with the Legal Agreement for myPOS Service.
References to the FATCA Law and CRS Law include references to any rules based on common-reporting standards agreements that may be applicable under the applicable law as well as any legislation that may amend or replace these rules, laws and agreements.
CRS (Common Reporting Standard) is an international standard for gathering information from financial institutions in the participating countries. It was developed by the Organization for Economic Co-operation and Development (OECD) to tackle tax evasion, improve the transparency and protect tax integrity.
In line with the CRS requirements, financial institutions in the participating jurisdictions are obliged to obtain certain information from their customers and share this information with the local tax authorities. The intent behind this is to identify the tax residency of customers.
Over 100 jurisdictions have taken part in CRS and agreed to automatic exchange and reporting of financial and tax-related information on an annual basis.
How does this affect me?
Under the CRS, myPOS is required to identify whether you are a tax resident in one country and hold an account in another one. To do this, we need to collect certain information about you and your business and report it to the tax administration.
What information will myPOS gather under CRS?
To ensure convenience and make the process as easy as possible for our clients, we collect all the required information during the registration. In case we need additional details, we will get in touch with you.
Why do I need to provide information on my jurisdiction(s) of tax residency?
Under the CRS, tax authorities require financial institutions such as myPOS to collect and report information regarding their clients’ accounts and tax statuses.
Which countries are participating in CRS?
You can find a full list of the participating countries here.
FATCA stands for Foreign Account Tax Compliance Act. It was designed by the U.S. Department of Treasury and Internal Revenue Service (IRS) and requires that foreign financial institutions report on foreign assets of U.S. account holders. FATCA is a primarily reporting system which aims to address perceived tax abuse and encourage better tax compliance.
What is the key difference between CRS and FATCA?
In fact, FATCA and CRS have similar characteristics because their main goal is to combat tax evasion and create common standards for exchanging information on financial accounts. However, CRS has much broader scope. While FATCA is focused solely on U.S. persons, CRS requires reporting of tax residents of “CRS-participating countries”.
What is the impact of FATCA?
Each year, financial institutions such as myPOS are required to share information on financial accounts of U.S. persons.