International Agreement to Improve Tax Compliance

Foreign Account Tax Compliance Act – United States of America (USA) – changes that may impact you

The Foreign Account Tax Compliance Act (FATCA) is a United States (US) legislation enacted in March 2010, aimed at preventing US persons from using any financial institutions to evade US taxation on their income and/ or assets, and to strengthen tax compliance. On September 12, 2012, the UK and the US signed a treaty to implement FATCA in the UK. As part of the FATCA legislation, ICICI Bank UK PLC (“Bank” or “we”) is obliged to pass on information about its US customers, where required, to HM Revenue and Customs (HMRC), UK who will in turn pass on the information to the US tax authorities, the Internal Revenue Service (IRS).

What does this mean for you?

We are obliged to make our first report on our US customers, including details of accounts held, to HMRC starting May 31, 2015 on all pre-existing accounts (accounts opened on or before July 01, 2014) and all new accounts (accounts opened on or after July 01, 2014).

For pre-existing accounts, where we have identified information for account holder(s) indicating that they may be a resident of the US for tax purposes, we will be sending out a communication to the respective account holder(s) asking for a declaration to be made confirming whether they are in fact a resident of US for tax purposes, and if so, to provide their US Tax Identification Number (TIN).

For new accounts, opened on or after July 01, 2014 with the Bank, we will be asking all applicants to declare on the account opening form(s), the countries in which they are considered residents for tax purposes and provide the tax identification number for the respective countries. This additional information obtained will supplement the information already required for our existing “Know Your Customer” requirements.

To know more about FATCA visit http://www.hmrc.gov.uk/fatca/