US TIN reporting rules relaxed for Indian RFIs

The government on Monday said a rule regarding the reporting of US TIN (Tax Identity Number) by Indian Reporting Financial Institutions (RFIs) has been relaxed in the India-US Inter-Governmental Agreement (IGA) under FATCA (Foreign Account Tax Compliance Act).

"... In case the US TIN is not available, to avoid determination by the USA Competent Authority of significant non-compliance to the obligations of the IGA," the ministry said in a statement.

The Ministry listed three conditions for Indian RFIs to take advantage of the relaxation -- obtain and report the date of birth of each account holder and controlling person whose US TIN is not reported; request annually from each account holder any missing required US TIN; and before reporting information that relates to calendar year 2017 to the partner jurisdiction, search electronically searchable data maintained by the reporting FFI for any missing required US TINs.

"... The RFIs are advised to insert nine capital letters e.g. (i.e. AAAAAAAAA) in the TIN field (for the Account Holder or Controlling Person, as the case may be), for such accounts in their reports in Form 61B, provided that all the three conditions listed above are met," the ministry said.

The two countries signed the IGA under FATCA in 2015 and to enhance the effectiveness of information exchange, both sides committed to establish rules requiring their RFIs to obtain the TIN of each "reportable person having a reportable account as of June 30, 2014 (pre-existing account)".

--IANS

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