On 4 February 2014, the Hungarian Government and the U.S. Treasury Department signed an intergovernmental agreement (IGA) to facilitate the automatic exchange of information between their respective tax authorities and the tasks specified in the FATCA regulations, on the basis of which agreement Act XIX of 2014 (the "FATCA Act") was enacted and several related laws were amended in Hungary. Implementation of the FATCA Act is mandatory for all Hungarian financial institutions.
What is FATCA?
FATCA is an acronym for Foreign Account Tax Compliance Act, a law enacted in the United States. FATCA aims to ensure that U.S. tax residents with financial assets outside the United States will fulfil their tax payment obligations in respect of such assets as well.
In order to meet the obligations prescribed in the FATCA Act, starting from 1 July 2014 Raiffeisen Bank Zrt. (the "Bank") has had all new customers of the Bank-and in the case of existing customers if any sign suggesting U.S. tax residence was found in the course of the review of the customer data available in the Bank’s registries-make a statement on their U.S. tax resident status.
The Bank examines the following signs suggesting connection with the U.S. in respect of the customer data included in its registries:
- U.S. citizenship,
- U.S. place of birth,
- U.S. residential address, place of stay or mailing address,
- U.S. phone number or mobile phone number,
- U.S. residential address or place of stay of an authorised representative.
Management of new and existing customers under FATCA
New customers: those customers are regarded as “new customers” who opened their accounts at the Bank on 1 July 2014 or thereafter.
Starting from 1 July 2014, the Bank will not establish contractual relationship with customers who refuse to make a statement on their U.S. tax residence!
If a new customer declares to be a U.S. tax resident (by completing Form W-9 + providing his/her U.S. taxpayer identification number (social security number = SSN)), in such case the Bank must treat the customer’s account as a “U.S. reportable account” going forward. In the declaration process concerning U.S. tax residence, the Bank may request further documents as well.
Existing customers: those customers are regarded as “existing customers” who had an account at the Bank already before 1 July 2014.
If as a result of the review of the customer data available in the Bank’s registries any of the signs suggesting U.S. tax residence is found in the case of an existing customer, the Bank must treat the customer’s account as a “U.S. reportable account” until the customer makes a declaration to the contrary. If an existing customer declares to be a U.S. tax resident (by submitting Form W-9), he/she must include his/her U.S. taxpayer identification number (social security number=SSN) in the form.
In the declaration process concerning U.S. tax residence, the Bank may request further documents as well.
In the scope of its annual reporting-by 30 June every year—the Bank is required to inform the National Tax and Customs Administration (NAV) of the data of all accounts qualifying as “U.S. reportable accounts” as well as the relevant data of the account holders, and NAV will transmit such data to the U.S. tax authority (Internal Revenue Service = IRS).
The Bank shall within 30 days following the reporting inform the customers concerned in writing of the fact of the reporting.
The Global Intermediary Identification Numbers (GIIN) of Raiffeisen Group and the enterprises belonging to the Banking Group testify that we operate as FATCA compliant financial institutions.
GIIN Number of Raiffeisen Bank Zrt.: 28CWN4.00010.ME.348
- FATCA declaration of Raiffeisen Bank Hungary (W8-BEN-E)
- FATCA declaration to Qualified Intermediaries/QI of Raiffeisen Bank Hungary (W-8-IMY)
GIIN Number of Raiffeisen Investmend Fund Management: 28CWN4.00041.ME348