FATCA - The Foreign Account Tax Compliance Act is US legislation designed to prevent offshore tax evasion by US Persons
FATCA imposes new requirements on financial institutions for identification, reporting and withholding. To comply with FATCA, ING is required to classify all of its customers – both entities and individuals – and in some cases to collect additional documentation.
The IRS has introduced a 30% withholding tax penalty that will be imposed on certain payments made to non-compliant entities and individuals.
ING will comply with FATCA in all countries where it is allowed or compulsory with the objective of obtaining the ‘participating’ financial institution status everywhere this is possible. ING is therefore proactively taking all relevant measures in order to be FATCA compliant by 1 July 2014 while continuing to best serving its clients and counterparties.
CRS - The Common Reporting Standard is a global standard for countries to exchange information about offshore accounts
It aims to prevent offshore tax evasion by giving countries transparency about offshore financial assets. It was developed by the Organisation for Economic Cooperation and Development (OECD). ING complies with CRS globally.
As of 6 April 2016, CRS applies to individuals and legal entities in the Czech Republic. More than 100 countries have committed to CRS, including all EU member states and key financial centres.
How does CRS work?
Financial institutions are asked to identify customers’ tax residencies and report financial accounts held directly or indirectly by foreign tax residents to local tax authorities, who then exchange the information.
What does ING do?
ING identifies customers’ tax residencies. Then we report financial accounts held directly or indirectly by foreign tax residents to the local tax authority.
What does it mean for you?
If you will be impacted by CRS, we will ask you to complete a self-certification form that includes your tax residency. If your circumstances change and they will affect your CRS classification, then you will need to let us know as well as complete a new self-certification form.
ING hereby announces that in connection with the Act No. 164/2013 Coll., on international cooperation in case of tax administration and on changes of further connected acts, as amended, it will apply due diligence rules according to Annex No. 2 to the above mentioned act also for the pre-existing entity accounts whose value does not exceed the amount corresponding to the equivalent of USD 250,000 as of December 31, 2015.
For more details see the OECD website or contact your local tax authority.