The Foreign Account Tax Compliance Act (FATCA) is United States (U.S.) legislation aimed at improving compliance with U.S. tax laws. FATCA imposes certain due diligence and reporting obligations on foreign (non-U.S.) financial institutions, including the obligation to report U.S. citizen or U.S. tax resident accounts to the U.S. Internal Revenue Service (IRS).
Common Reporting Standard (CRS) is a global reporting standard for the automatic exchange of information, developed by the OECD (Organisation for Economic Cooperation and Development). The aim of CRS is for tax authorities to gain a clearer understanding of financial assets held overseas by their residents (for tax purposes). Over 100 countries have agreed to share information on residents’ assets and incomes in line with reporting standards.
Link has implemented changes to the Investor Centre allowing investors to self-certify with regard to tax residency, and to facilitate the collection of foreign TINs (Taxpayer Identification Numbers) online.
If you are unsure about your FATCA/CRS status or how to certify, you will need to seek your own advice. However, please note that if you do not self certify, the financial institution (i.e. the security issuer you have invested in) may be required to report information about your investment (e.g. holding value and income you receive) to the ATO who will pass the information to the U.S. IRS (in the case of FATCA) and to participating foreign tax authorities (in the case of CRS).
For most investors, certifying is a simple process and our system has been designed to step you through the questions in a logical manner.
Additional information is available online via:
Please click here for FATCA/CRS Frequently Asked Questions.