Refer to www.irs.gov for detailed information on a wide range of tax issues. You may use the IRS search function and type in “FATCA” for information specific to the Foreign Account Tax Compliance Act and its impact to you.
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. 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 U.S., you may leave this field blank.”
The current OppenheimerFunds applications contain substitute W-9 language (as applicable). Because of this, most shareholders will not need to complete a Form W-9 when submitting a new application. As previously noted, the FATCA exemption code may be left blank for accounts held at OppenheimerFunds as they are maintained within the United States. If you submit an old version of an account application to OppenheimerFunds you may be requested to provide a supplemental IRS standard Form W-9.
Please visit our W-9 information page for more details.
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 has issued updated Form W-8s as of February 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. Please visit our W-8 information page for more details on the different kinds of W-8s.
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, 2019. Please consult your tax advisor to ensure that appropriate documentation is submitted to assist in a complete assessment, where necessary.