FATCA Regulation

FATCA affects US taxpayers/citizens invested in STANLIB

The Foreign Account Tax Compliance Act (FATCA) is effective 1 July 2014. This regulation governs the investment in the United States via non-US financial institutions and is designed to counter offshore tax avoidance by US persons.

STANLIB is impacted by FATCA. As a result we have made changes to some of our processes and procedures.

We will comply with four main elements of FATCA:

  • Identifying new and existing foreign persons
  • Identifying new and existing entities
  • Identifying foreign substantial owners/controlling persons (persons who hold 25% or more shareholding in the entity)
  • Reporting on US persons to SARS

On-boarding of your clients

New business using application forms

We added new fields to our Unit Trust application form and Classic Investment Plan application form to enable you to determine if your client is a foreign national.

If your client is a foreign national, he needs to complete the following FATCA annexure/s and submit it with the new business application form:

  1. Tax Information for Foreign Individuals – This is applicable for all foreign national individual applicants
  2. Tax Information for Entities – Exempt Beneficial Owners and Deemed Compliant Financial Institutions
  3. Tax Information for Entities – Other Entities
    2 and 3 are applicable to ALL entities.

New business using STANLIB Online

We created a new screen to help you classify foreign nationals according to FATCA regulations. We urge you to refer to the FATCA annexures for definitions and FATCA classification categories.

When investors complete a unit trust application or Classic Investment Plan application via STANLIB Online, they will be asked to select whether they are a RSA resident or not. If they select NO to “RSA Resident”, a FATCA screen will populate with specific questions pertaining to foreign nationals. This screen will also appear for all entities as they are required to classify themselves under FATCA regulation.

More information on FATCA

Download the information flyer here.

FATCA annexures and business requirements

For more information please contact your STANLIB Consultant or phone our Broker Support line on 0860 104 418.