Guidance for the Implementation of the Provisions of Cabinet Decision No. 63 of 2022 Concerning the Implementation of Agreement Between the Government of the United Arab Emirates and the Government of the United States of America Concerning the Foreign Account Tax Compliance Act

Contents

1. INTRODUCTION

1. 1.1 Introduction to Guidance

2. 1.2 What is FATCA

3. 1.3 Intergovernmental Agreement

4. 1.4 Scope of the Agreement

5. 1.5 Reporting and Non-Reporting Financial Institutions

6. 1.6 Non-Financial Foreign Entities

2. DEFINED TERMS

3. UAE FATCA REGULATORY FRAMEWORK

1. 3.1 Overall structure

2. 3.2 Functions of the Competent Authority

3. 3.3 Functions of the Regulatory Authorities

4. 3.4 Functions of the Federal Tax Authority

5. 3.5 Powers of Inspection and Investigation

6. 3.6 Requirement to Provide Information

7. 3.7 Cooperation by Governmental Authorities

8. 3.8 Exchange of Information

4. FINANCIAL INSTITUTIONS

1. 4.1 Defining what is and what is not a Financial Institution

   1. 4.1.1 Defining a Financial Institution

      1. 4.1.1.1 Residence Requirements

      2. 4.1.1.2 Type of Entity

         1. A. Depository Institution

         2. B. Custodial Institution

         3. C. Investment Entity

         4. D. Specified Insurance Company

   2. 4.1.2 Related Entities

      1. 4.1.2.1 Definition

      2. 4.1.2.2 Exceptions

   3. 4.1.3 Determining whether a Financial Institution is a Reporting Financial Institution

      1. A. Reporting Financial Institutions

         1. (a) Exempt Beneficial Owners

         2. (b) Deemed-Compliant Financial Institutions

         3. (c) Owner Documented Financial Institutions

   4. 4.1.4 Defining a Non-Financial Foreign Entity

      1. 4.1.4.1 Active NFFEs

      2. 4.1.4.2 Passive NFFEs

      3. 4.1.4.3 Direct Reporting NFFEs

2. 4.2 Financial Accounts

   1. 4.2.1 Does the Financial Institution maintain Financial Accounts?

   2. 4.2.2 Defining Financial Accounts

   3. 4.2.3 Exempt Accounts

   4. 4.2.4 Are The Financial Accounts US Reportable Accounts?

      1. (a) Financial Accounts held by Specified US Persons

      2. (b) Accounts held by a Non-US Entity where one or more Controlling Persons are Specified US Persons

      3. (c) Accounts with US indicia discovered after Due Diligence

      Documentary Evidence

      Aggregation and Currency Translation

3. 4.3 OBLIGATIONS

   1. 4.3.1 Registration Requirements

      1. A. Registration with the IRS

         1. (a) Entities Required to Register

         2. (b) Entities Not Required to Register

         3. (c) IRS Registration Walkthrough

   2. 4.3.2 Due Diligence

      1. B. Due Diligence Procedures for Individual Accounts

         1. (i) Pre-existing Individual Accounts

         2. (ii) New Individual Accounts

      2. C. Due Diligence Procedures for Entity Accounts

         1. (i) Pre-Existing Entity Accounts

         2. (ii) New Entity Accounts

   3. 4.3.3 Self-Certification

   Change in Circumstances

   4. 4.3.4 Reporting Obligations

   5. 4.3.5 Systems and Procedures

      1. (a) Record Keeping

      2. (b) Records of arrangements, steps and measures

   6. 4.3.6 Use of Third Parties

5. ACCOUNT HOLDERS/ CONTROLLING PERSONS

1. 5.1 Requirements on Account Holders/Controlling Persons

   1. (a) Self-Certification

   2. (b) Information, Documentation and Assistance

6. COMPLIANCE