Request to Customers Concerning the "Foreign Account Tax Compliance Act (FATCA)"
The Foreign Account Tax Compliance Act ("FATCA") was introduced in March 2010 in the United States (U.S.). It is designed to prevent tax evasion by U.S. taxpayers using their accounts opened in financial institutions overseas (meaning countries other than the U.S.). The FATCA regulations and the joint statement by the U.S. and Japan indicated procedures to be followed by financial institutions in Japan. In line with this, Shinsei Bank will introduce new procedures under the FATCA effective July 1, 2014.
If our customers are U.S. citizens for the purpose of FATCA (U.S. taxpayers) as described below, Shinsei Bank will report to the U.S. authorities on a periodical basis the customers' name, address, account number, taxpayer identification number, account balance, interest earned, and other details. We therefore will require our customers who are subject to this reporting to submit documents stipulated by Shinsei Bank including a statement agreeing to the information disclosure.
U.S. citizens for the purpose of FATCA who are subject to reporting
"U.S. citizens" for the purpose of FATCA refer to U.S. citizens under the U.S. taxation laws. They are not limited to people who have U.S. citizenship or nationality, but include people who have permanent residency in the U.S. (Green Card) and people who are residents in the U.S.
- (1)U.S. citizens (people who have U.S. citizenship)
- (2)U.S. permanent residents (Green Card holders)
- (3)People who are classified as U.S. residents (including expatriates) under the laws of the U.S. (generally, people who satisfy the following conditions concerning the length of their stay in the U.S. are deemed to be residents in the U.S. for the purpose of taxation in the U.S.: The total of i) the number of days of stay in the U.S. this year, ii) one-third of the number of days of stay in the U.S. in the previous year, and iii) one-sixth of the number of days of stay in the U.S. in the year before the previous year equals or exceeds 183 days)
Please note that Shinsei Bank's PowerFlex accounts are only available to customers who live in Japan (residents) pursuant to Article 1, Paragraph (2) of "Common Customer Agreement on PowerFlex Transaction" *
- * Article 1, Paragraph (2) of "Common Customer Agreement on PowerFlex Transaction":
This transaction will only be provided for individual customers who are resident in Japan.
Details of Our Request to Customers
When customers are applying to open accounts at Shinsei Bank, we may ask questions concerning the FATCA and request the submission of necessary documents (in the format designated by Shinsei Bank), including a letter of consent on reporting to the U.S. taxation authorities, in order to check if customers are U.S. taxpayers or not.
- (1) Customers applying for opening new accounts
Effective July 1, 2014, when customers falling under (1) on the face side hereof apply to open an account, they will need to submit "Request for Taxpayer Identification Number and Certification (W-9) <in a format prescribed by Shinsei Bank>." When customers falling under (2) on the face side hereof apply to open an account, they will need to submit "Request for Taxpayer Identification Number and Certification (W-9) <in a format prescribed by Shinsei Bank> or W-8EN." Shinsei Bank will not open an account without the submission of these documents.
If customer identification documents submitted by a customer include information that suggests that the said customer may be a U.S. citizen (e.g., information that the customer's birth place is in the U.S.), the customer may have the duty to pay tax in the U.S. regardless of his/her current place of residence and thus needs to submit the stipulated documents (W-9 <in a format prescribed by Shinsei Bank> or W-8EN). Shinsei Bank will not open an account without the submission of these documents.
Please note that people wishing to take out Shinsei PowerSmart Home Mortgage need to open a Shinsei PowerFlex account.
- (2) Customers who already have a Shinsei PowerFlex account
If information held by Shinsei Bank regarding a customer who has already opened an account at Shinsei Bank contains information that suggests that the said customer may be a U.S. citizen, we may check if the said customer is in fact a U.S. citizen. Even in situations where the customer does not take confirmation procedures, the Japanese tax authorities may submit account information and so forth to the U.S. tax authorities.
If you have questions about taxation treatment concerning the FATCA, please make sure to consult with a lawyer, tax accountant, and other relevant specialists.
- Handling of Personal Information by Shinsei Bank
We will use personal information (e.g., taxpayer identification number) obtained from our customers under FATCA only for the purpose of the FATCA.
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