In order to comply with the requirements of the Agreement between the Government of the Republic of Belarus and the Government of the United States of America on Improving International Tax Compliance and Implementing the United States Foreign Account Tax Compliance Act, concluded in Minsk on March 18, 2015, and ratified by the Law of the Republic of Belarus dated July 15, 2015 “On Ratification of the Agreement between the Government of the Republic of Belarus and the Government of the United States of America on Improving International Tax Compliance and Implementing the United States Foreign Account Tax Compliance Act,” JSC “Liderinvest” annually informs the US Internal Revenue Service (IRS) about accounts serviced by JSC “Liderinvest” that belong to US taxpayers.
JSC “Liderinvest” classifies the following as US taxpayers:
Legal entities:
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organizations that are US taxpayers (only if such organization does not fall under the category of persons excluded from the composition of reportable US tax residents under the Agreement);
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organizations that are not US taxpayers, one or more beneficial owners* of which are US taxpayers, provided that under the Agreement this organization is a “passive” non-US organization.
Individuals, including sole entrepreneurs:
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US citizens, regardless of whether they hold citizenship of another state;
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persons holding permanent residence authorization (residence permit) in the US (e.g., Green Card);
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persons holding a US taxpayer identification number (SSN) (e.g., persons meeting the “substantial presence in the United States”** criterion established by US legislation for recognition as a US taxpayer).
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Beneficial owner – an individual who is the owner of the client’s property, or holds at least 10 percent of the shares (stakes in the charter fund, units) of the client-organization, or directly or indirectly (through third parties) ultimately has the right or ability to give instructions binding on the client, influence decisions made by the client, or otherwise control the client’s actions. If, as a result of identification measures taken by the Bank, the beneficial owner is not established, the beneficial owner shall be deemed to be the person performing the functions of the sole executive body of the client-organization, or the person heading its collegial executive body.
** Substantial presence is considered to be presence if the period of stay in the US territory is at least 31 days during the current calendar year and at least 183 days during a 3-year period including the current year and the two immediately preceding years.
To identify accounts of organizations reportable under the Agreement, JSC “Liderinvest” uses the following indicators of the account holder’s connection to the US:
For legal entities:
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place of registration (place of organization) in the US;
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address of location in the US;
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availability of information on US taxpayer status (possession of a US taxpayer identification number (EIN));
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other indicators pointing to a connection with the US (e.g., classification of beneficial owners of a non-US organization as US taxpayers).
For individuals, including sole entrepreneurs:
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direct evidence of account ownership by a US taxpayer (e.g., documented: US citizenship, US residence permit (Green Card), presence in the US for more than 182 days during a calendar year);
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indirect evidence of financial account ownership by a US taxpayer:
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place of birth in the US;
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mailing address or residential address in the US (including a US post office box);
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US contact telephone number;
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existence of standing instructions from the account holder to transfer funds to an account opened in the US;
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existence of a power of attorney or signature authority granted to a person with a US address;
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availability of information about the account holder’s presence in the US during the last three years;
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other indicators pointing to a connection with the US.
To confirm (or refute) the account holder’s connection to the US, JSC “Liderinvest” requests the following information:
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Questionnaire for legal entities – Questionnaire
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Form for legal entities – W-8BEN-E
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Questionnaire for individuals – Questionnaire
The above information is requested by JSC “Liderinvest” from clients with whom agreements are concluded (or have been concluded) for:
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Brokerage and depository services.
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Issuance (emission) and placement of securities.
In accordance with subclause 1.4 of clause 1 of the Decree of the President of the Republic of Belarus dated October 15, 2015 No. 422 “On Providing Information to Tax Authorities of Foreign States,” JSC “Liderinvest”:
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refuses to open an account (conclude an agreement) for an organization or individual applying for account opening with JSC “Liderinvest” if JSC “Liderinvest” has documented grounds to believe that they are reportable under the Agreement, in the event of their refusal to fill out the established forms;
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unilaterally refuses to perform the concluded agreement in the event of refusal by the account holder (or its beneficial owner), with respect to whom JSC “Liderinvest” has documented grounds to believe that they are reportable under the Agreement, to provide documents and information necessary for fulfilling obligations under the Agreement, and/or to fill out the established forms and provide consent to the provision of information.
