FAQs - FATCA / CRS

1.What is "FATCA"?

FFATCA stands for the "Foreign Account Tax Compliance Act", which is a chapter of the United States Internal Revenue Code.

FATCA is a U.S. tax regulation introduced by the U.S. Department of the Treasury and the Internal Revenue Service (IRS).

The regulation aims to increase transparency and reporting of financial information about U.S. persons. It also seeks to prevent U.S. taxpayers from evading taxes by investing through non-U.S. financial institutions and offshore investment vehicles and concealing their assets from the IRS.

FATCA requires financial institutions such as ArtaGM Securities to identify U.S. persons and report certain information about their accounts to the IRS.
For more details, please refer to: http://www.irs.gov/Businesses/Corporations/Foreign-Account-Tax-Compliance-Act-FATCA

2.What are the W-8BEN and W-9 forms?

W-8BEN form:
The W-8BEN form is issued by the Internal Revenue Service (IRS), the U.S. tax authority. It is titled "Certificate of Foreign Status of Beneficial Owner for United States Tax Withholding and Reporting (Individuals)".

Generally, an individual submits this form for the following purposes:
(1) To certify that they are not a U.S. person;
(2) To confirm that they are the beneficial owner of the income; and
(3) To claim a reduced rate of or exemption from withholding tax as a foreign resident of a country that has a tax treaty with the U.S.

The IRS tax form W-8BEN (revised in 2014) is typically for individual use only. Entities must use the W-8BEN-E form.
If you require further guidance or advice, you may consult your legal and/or tax advisors.
The IRS (Internal Revenue Service) provides instructions on how to complete the W-8BEN tax form and its applicability.
For more details, please refer to: http://www.irs.gov/pub/irs-pdf/iw8ben.pdf

W-9 form:
The W-9 form is issued by the Internal Revenue Service (IRS), the U.S. tax authority. It is titled "Request for Taxpayer Identification Number and Certification".

The person submitting this form is required to certify their status as a U.S. tax resident (including individuals or entities).

If you require further guidance or advice, you may consult your legal and/or tax advisors.

The IRS provides instructions on how to complete the W-9 tax form and its applicability, which can be found on the IRS website.
For more details, please refer to: http://www.irs.gov/pub/irs-pdf/fw9.pdf

3.Why do clients need to fill out the W-8BEN/W-9 forms?

ArtaGM Securities is committed to complying with the FATCA (Foreign Account Tax Compliance Act) regulations. These regulations require our group to collect certain U.S. tax status information from our clients in specific circumstances.

The relevant forms and instructions for filling them out can be found on the following websites: http://www.irs.gov/Forms-&-Pubs

4.When do clients need to fill out the W-8BEN/W-9 forms?

WW-8BEN form:
In general, the W-8BEN form used to establish foreign (non-U.S.) status is valid from the date it is signed until the last day of the third calendar year following the year in which it is signed.

For example, a W-8BEN form signed on September 30, 2015 would be valid until December 31, 2018.

W-9 form:
The IRS tax form W-9 is usually valid indefinitely, until there is a change in the account holder's circumstances.

5.For joint accounts or entity accounts, who is responsible for signing the W-8BEN form?

Joint individual accounts:
Each joint account holder needs to complete and sign their own IRS tax form, either a W-8BEN or W-9, based on their individual circumstances.

If the two joint account holders have different personal circumstances, they may need to sign different types of forms.

Entity accounts:
The IRS tax forms W-8BEN/W-9 can be signed by any authorized signatory who can legally make the perjury statement on behalf of the person(s) named on the certification or statement.

6.What is the deadline for submitting the forms?

For new clients:
We must receive all the necessary information from you before we can open an account for you.

Since a U.S. withholding tax certification is a required document for your situation, please submit a valid U.S. withholding tax certification as soon as possible so that we can open your account.

For existing clients who have not previously submitted a withholding tax certification:
You must submit the appropriate withholding tax certification that fits your circumstances within 30 days from the date our institution requests you to do so.

For existing clients who have submitted a withholding tax certification but have had a change in circumstances:
You must submit an updated valid withholding tax certification to us within 30 days of the change in your circumstances.

7.If clients have any questions when filling out the W-8BEN / W-9 forms, for example if they are unsure how to complete certain fields, who can they consult?

You can visit the IRS website at: http://www.irs.gov.com,which has detailed instructions and guidance on how to complete the forms.

If the information provided on the IRS website is still insufficient, you can consult an independent tax advisor for their professional advice.

However, we are unable to recommend any specific tax advisors to you.

8.What client account information will ArtaGM Global report to the IRS?

Generally speaking, Yucheng Global is responsible for reporting accounts held by U.S. persons, accounts held by non-cooperating foreign financial institutions ("FFIs"), accounts held by overseas entities in which U.S. taxpayers have substantial ownership, and accounts held by self-provided Accounts held by documented FFIs or by account holders who refuse to provide information and are required to report account information in each calendar year. For the above-mentioned accounts, Yucheng Global Securities must report to the IRS information about the account holders, including name, address, taxpayer identification number or global intermediary identification number, account balance or value, and information about such accounts. Payment details.

9.If a client is unwilling to fill out the W-8BEN / W-9 forms, there can be the following consequences?

If you do not provide us with the required documentation, in certain circumstances ArtaGM Global may be required to report account information to the IRS and/or withhold 30% tax on any U.S.-sourced withholdable payments or gross proceeds.

Depending on your specific situation, if you do not provide us with the necessary certifications, we have an obligation to report your account information to the IRS and withhold 30% tax on your withholdable payments.

10.What documents do existing individual or joint clients currently need to provide to Yucheng Global Securities?

FFATCA requires financial institutions to identify accounts held directly or indirectly by U.S. persons. Therefore, we will subsequently request additional documentation from relevant U.S. persons through letters or other means. If you are not a U.S. person, we will not require you as a client to provide any additional information.