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Foreign Account Tax Compliance Act (FATCA)

Foreign Account Tax Compliance Act (FATCA)

Refer to www.irs.gov for detailed information on a wide range of tax issues. You may also visit http://www.irs.gov/Businesses/Corporations/Foreign-Account-Tax-Compliance-Act-(FATCA) for information specific to FATCA.

What is FATCA?

FATCA targets tax non-compliance of U.S. taxpayers with foreign accounts (such as bank accounts but also investments such as foreign mutual funds). The objective of FATCA is the reporting of foreign financial assets; withholding is the cost of not reporting. FATCA became law in March of 2010. While companies such as OppenheimerFunds are currently working to implement FATCA requirements any tax withholding that results from implementation does not begin until June 30, 2014 on specified payments. You may visit the IRS site mentioned above for updated timelines on implementation and withholding requirements and dates.

Updates to Form W-9

Investors are required to complete a substitute Form W-9 when opening an account with OppenheimerFunds to certify that their taxpayer identification number is correct and that they are a U.S. person, amongst other certifications (as applicable). With the updates made to Form W-9 in August 2013 there is now a certification of FATCA status. As noted in the instructions to the IRS Form W-9 on Page 3, the FATCA exemption code applies to “persons submitting Form W-9 for accounts maintained outside of the United States. Therefore, if you are only submitting Form W-9 for accounts you hold in the United States, you may leave this field blank.”
The current OppenheimerFunds applications contain substitute W-9 language (as applicable). As previously noted, the FATCA exemption code may be left blank for accounts held at OppenheimerFunds as they are maintained within the United States. In the absence of the FATCA certification in the OppenheimerFunds new account application there will not be a requirement to provide a Form W-9 from the IRS website as a supplemental attachment. This policy may change as guidance is issued by the IRS.

Please consult with your tax advisor for more information on completing Form W-9. http://www.irs.gov/pub/irs-pdf/fw9.pdf 

Updates to Form W-8

Investors that are not U.S. persons and are considered to be foreign do not complete Form W-9 but instead complete Form W-8. The IRS will be issuing updated Form W-8s in late 2013 or early 2014 to accommodate FATCA certifications similar to the Form W-9. If you are a non-individual required to complete a Form W-8 for your account with OppenheimerFunds you should consult your tax advisor soon as the Form W-8 has grown extensively and will require significantly more time to complete than in prior years.

FATCA Withholding

Accounts maintained with OppenheimerFunds that are subject to FATCA but are assessed to not be compliant with FATCA may be subject to a 30% FATCA withholding tax on dividends starting June 30, 2014. Withholding on proceeds (i.e. redemptions) will begin January 1, 2017. Please consult your tax advisor to ensure that appropriate documentation is submitted to assist in a complete assessment, where necessary.


This material is provided for general and educational purposes only, and is not intended to provide legal, tax or investment advice, or for use to avoid penalties that may be imposed under U.S. federal tax laws. Contact your attorney or other advisor regarding your specific legal, investment or tax situation.

Shares of Oppenheimer funds are not deposits or obligations of any bank, are not guaranteed by any bank, are not insured by the FDIC or any other agency, and involve investment risks, including the possible loss of the principal amount invested.

Before investing in any of the Oppenheimer funds, investors should carefully consider a fund's investment objectives, risks, charges and expenses. Fund prospectuses and summary prospectuses contain this and other information about the funds, and may be obtained by asking your financial advisor, visiting oppenheimerfunds.com, or calling 1.800.CALL OPP (225.5677). Read prospectuses and summary prospectuses carefully before investing.

Oppenheimer funds are distributed by OppenheimerFunds Distributor, Inc.
Two World Financial Center, 225 Liberty Street, New York, NY 10281-1008