FATCA

What are our Bank's obligations under FATCA?

According to the agreement, all financial institutions resident in Türkiye are obligated to report to the Turkish Revenue Administration (GİB) of the Ministry of Treasury and Finance.

As TKYB, we commit to complying with national and international legislation, laws, and all regulations issued within this scope. In this context, to fulfill our FATCA obligations, we are responsible for obtaining the necessary information, documents, and declarations in accordance with the procedures specified in the legislation and reporting customers who meet the FATCA criteria to the Revenue Administration.

Which customers will be affected by FATCA?

Customers generally affected by the agreement are as follows:

• Among Natural Persons: U.S. citizens, those whose place of birth is the U.S., Green Card holders, individuals with a U.S. address or telephone number, U.S. residents, and those who perform money transfers to the U.S. via standing payment orders.
• Among Legal Entities: Those with a U.S. address, those whose country of incorporation or headquarters is the U.S.; and for **Passive Non-Financial Entities (Passive NFFEs)**¹, entities where at least one of the natural persons who Controls² the entity is a U.S. citizen or resident.
• Financial Institutions: Banks, investment companies, etc., that hold accounts on behalf of customers.

[1] The definition of Passive Non-Financial Entity is explained in detail in Annex I, Section VI, Paragraphs B.3 and B.4 (Special Rules and Definitions) of the Agreement.

[2] Controlling Persons are expressed in the Agreement as "natural persons who exercise control over an entity."

What forms are required from customers affected by the FATCA agreement?

Among customers affected by the FATCA agreement, those who fall under the definition of a U.S. Person (U.S. citizens, U.S. residents, Green Card holders, etc.) are subject to U.S. tax liability. These customers must declare their tax liability information to our Bank using the Form W-9, which is an original form of the U.S. tax authority (IRS).

Customers affected by the agreement but not U.S. taxpayers must provide their declarations using the appropriate Form W-8.

What happens to customers who do not provide information, documents, or declarations?

Customers affected by the agreement who fail to provide any declaration regarding their tax liability (i.e., those who do not submit the appropriate W-9 or W-8 form) will be considered Reportable U.S. Persons under the scope of the agreement.

According to the agreement, all financial institutions in our country are obligated to determine whether their customers are U.S. taxpayers and must obtain information, documents, and declarations accordingly. On the other hand, a 30% withholding tax may apply to U.S.-sourced income for customers who fail to provide the required information and documentation.

However, according to the Model 1 IGA (Intergovernmental Agreement) signed between Türkiye and the U.S., TKYB has no withholding tax obligation. The authority and responsibility for withholding will be handled by institutions authorized by the U.S.

Which information of customers falling under FATCA will TKYB report to the Revenue Administration (GİB)?

• The name, address, and U.S. Tax Identification Number (TIN) of each specified U.S. person who is an account holder,
• In the case of a legal entity identified as a U.S. person, or a non-U.S. entity determined to be controlled by one or more U.S. persons, the name, address, and U.S. TIN of the entity and each associated specified U.S. person,
• The account number (or its functional equivalent in the absence of an account number),
• The account balance or value (including cash value or surrender value in the case of a cash value insurance contract or annuity contract) as of the end of the relevant calendar year or other appropriate reporting period, or immediately before closure if the account was closed during the year,

In addition to the information mentioned above, reporting other data to GİB over the years may be required in accordance with the agreement.

Where can the text of the agreement and detailed information regarding FATCA be accessed?

The Turkish and English texts of the agreement, as well as the Frequently Asked Questions (FAQ) section published based on the agreement, can be accessed via the following links of the Revenue Administration:

[FATCA Agreement - Turkish]
[FATCA Agreement - English]
[Questions Regarding the FATCA Agreement]

Detailed information provided by the IRS regarding FATCA can be found at the link below:

Foreign Account Tax Compliance Act: FATCA

What is TKYB's FATCA status and GIIN?

Our Bank's Global Intermediary Identification Number (GIIN) is: 3C7ID8.99999.SL.792