1. What is FATCA?
FATCA is an acronym for the Foreign Account Tax Compliance Act, a law enacted by the U.S. in 2013 to prevent avoidance of U.S. taxes by concealing funds in accounts opened at financial institutions outside the U.S.
In order to facilitate compliance with FATCA's provisions in Japan, the relevant Japanese and U.S. governing authorities have issued a statement (*1) that specifies the procedures Japanese financial institutions must take regarding the implementation of FATCA.
Since July 2014, in accordance with an agreement between U.S. and Japanese tax authorities, Japanese financial institutions, including Sony Bank, have been required to verify whether customers are considered "U.S. persons" (i.e., have U.S. tax obligations). For those customers considered U.S. persons, Sony Bank is legally obligated to obtain the customers' permission to report certain information, including transaction details, to the U.S. Internal Revenue Service (IRS) on an annual basis.
- Statement of Mutual Cooperation and Understanding between the U.S. Department of the Treasury and the Authorities of Japan to Improve International Tax Compliance and to Facilitate Implementation of FATCA (the Foreign Account Tax Compliance Act of the United States)
[国際的な税務コンプライアンスの向上及びFATCA実施の円滑化のための米国財務省と日本当局間の相互協力及び理解に関する声明]
2. Does FATCA apply to you?
If you are in any of the following four categories, you are considered a U.S. resident for tax purposes (U.S. person) and fall under Sony Bank's reporting obligation for FATCA compliance.
- You are a U.S. citizen
- You have U.S. citizenship by birth or U.S. permanent residence status (green card)
- You reside in the U.S.
- Both of the following are true:
- (i) You were physically present or expect to be physically present in the U.S. for 31 days or more in the current year; (ii) the total (a + b + c) as calculated from the following values equals 183 days or more:
- a = number of days physically present in the U.S. in the current year;
- b = 1/3 of the number of days physically present in the U.S. in the year before the current year;
- c = 1/6 of the number of days physically present in the U.S. in the year before last.
If you need assistance determining whether you are considered a U.S. person, please consult a professional such as a licensed tax advisor or an accountant.
Sony Bank is not able to respond to inquiries about whether FATCA applies to you.
3. What is the FATCA identity verification procedure?
For those applying to open a new account at Sony Bank
If the account opening application and supporting personal identity documents you submit to Sony Bank contain information that indicates that you are or could be a U.S. person (*2), we will send you a FATCA W9 form. When you receive the form, please immediately fill it out and return it to us.
- You will not be able to open an account until the form is submitted.
- If your form contains mistakes or is incomplete, it will be returned to you by registered mail. You will not be able to open an account until it is resubmitted in a satisfactory condition.
- If you do not return the form by the date noted in the materials we send you, your application to open an account will be canceled.
For those who already have an account at Sony Bank
If in the course of doing business with you, information comes to light that indicates that you are or could be a U.S. person (*2), Sony Bank may request that you submit personal identity documents and/or a FATCA W9 form.
- （*2）E.g., the nationality listed on your residence card is the U.S.
For those who have renounced/lost U.S. citizenship or U.S. permanent resident status
If in the course of doing business with you, Sony Bank establishes that you have lost your U.S. citizenship or permanent resident status, we will send you a FATCA W8-BEN form. When you receive the form, please immediately fill it out and return it to us.
4. Declining to comply with FATCA verification
If you decline to submit to FATCA verification, and Sony Bank establishes information indicating that you are or could be a U.S. person, the following actions will be taken.
For those who have applied to open a new account with Sony Bank
Your application to open a new account will be denied.
For those who already have an account at Sony Bank
Sony Bank may report to the U.S. Internal Revenue Service (IRS) the fact that you refused to submit to FATCA verification.