International Agreement to improve tax compliance
Foreign Account Tax Compliance Act (FATCA) - United States of America (USA)
Portugal signed an Intergovernmental Agreement (IGA) with the USA to implement FATCA. Under this international agreement, all the financial institutions in Portugal, including Millennium bcp, are obliged to identify all its US clients (citizens or residents) and send information on the accounts held by them to the Tax and Customs Authority of Portugal. Millennium bcp will mandatorily have to make a report with information on all its US clients and send it to the Tax and Customs Authority of Portugal (which will send it to the US IRS - Internal Revenue Service), until June of each year, based on the previous year.
Apart from what is mentioned before and as of 01 July 2014, Millennium bcp will be obliged to collect additional information on new clients to be able to identify those who are considered US citizens or residents for tax purposes.
What may this Agreement eventually mean for you?
- Client's accounts opened BEFORE 1 July 2014:
INFORMATION: Concerning its clients holding accounts opened before 1 July 2014, who are not considered US citizens or residents and do not have tax duties in the USA, Millennium bcp is not obliged to provide any information on their financial assets under this international agreement. Millennium bcp will only be obliged to provide information on the financial assets of clients with evidenced tax duties in the USA.
- Client's accounts opened AFTER 1 July 2014:
IDENTIFICATION: this international agreement establishes that, for accounts opened after 1 July 2014, the Bank shall ask all its clients for the provision of additional information with the purpose of verifying his/her condition as US citizen for tax purposes in the USA. This additional information will complement that which is currently collected in accordance with KYC - Know Your Customer and the Directive on Savings Income, relating to taxation requisites in the European Union.
INFORMATION: concerning all its clients holding accounts opened after 1 July 2014 and who are not considered US citizens or residents and do not have tax duties in the USA, Millennium bcp, under the provisos of this international agreement, is not obliged to provide any information on their financial assets. The Bank will only be obliged to provide information on the financial assets of clients with evidenced tax duties in the USA.
For more information, please read the document FATCA - FAQs.