FATCA (Foreign Account Tax Compliance Act) is legislation to prevent tax evasion by US persons. CRS (Common Reporting Standard) is the global non-US equivalent of FATCA.
Banks are required to report end-of-year (31st of December) balances of reportable bank account holders to the Dutch Tax authority. As Adyen has a banking license, this reporting obligation also applies to us for all entities that are using an Adyen bank account.
If you are a European entity or subsidiary, you must submit a self-certification form. This will determine what your FATCA and CRS reporting status is.
Circumstances under which a bank account will be reportable for FATCA
FATCA reporting only applies when your organization or your controlling person(s) are considered a US person (see below for details), or if your company is not an Active NFFE (see below). You can find more info about FATCA here.
Circumstances under which a bank account will be reportable for CRS
CRS will only have implications for your organization when your organization has more than one tax residency (or country of residence) (see "What is my tax residency"?) or if your company is not an Active NFE (see "Am I an Active NFFE/NFE?").
You are considered a US person if you are (or your business is) a citizen, resident, partnership or corporation that is located or organized in the United States, or if you operate under the law of the United States. Additional conditions will apply for trusts and estates of decedents of US persons. Please note that for this Adyen’s self-certification only applies to the accountholder, which is the legal entity. This means that you should only indicate that your entity is a US person if this entity is domiciled in the US.
Tax residency is determined according to the specific rules of the jurisdictions in which an entity may be tax resident. Please consult your legal counsel or tax adviser for information about your tax residency status. General information regarding tax residency is available on the OECD website. For each tax residency, you will have a TIN (Unique Taxpayer Reference). It depends per country where this number can be found and what it is called. Please contact your tax adviser to find your TIN(s).
For FATCA, an Active NFFE is an active non-financial foreign entity. For CRS, an Active NFE is an active non-financial entity. Both terms can be considered equivalent. It means that your business is not considered as a passive or financial institution. If you are unsure of your entity status, please contact your legal counsel or tax adviser.