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FATCA status - form W-8BEN-E

what is the appropriate FATCA status for UK Ltd Co

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My UK client has just dumped a form W-8BEN-E on my desk which has been provided to him by a US based new customer.  The form requires that we classify his UK Ltd Co trading company within a FATCA status.  Non of the acronyms used on this IRS mean much to me.  Does anyone have any experience in dealing with these forms?

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By tom123
22nd Sep 2016 18:40

Can you remind me of the options?
I did this for my (employer's) business - which was a trading company.

If I recall, we chose the name that included something like 'non financial' - but I can't remember the wording.

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By tom123
22nd Sep 2016 18:49

Just had a quick look - how does:

Active Non Financial Foreign Entity sound?

(active refers to income from trading, vis a vis from investments etc)

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By Mr_Paulius
22nd Sep 2016 20:23

I've recently done one of those for one of my clients too, he was asked to complete the form in order to open Business account. I think we will see more of these in the near future. It is designed to prevent tax evasion, especially offshore, and governments are trying to curb on these.

Have a look at this mapping - http://www.oneaccount.com/onev3/pdfs/FATCA_Active_Decision_Tree.pdf, this will help to determine whether company is Active or Passive NFFE, bear in mind this applies to Non Financial type of business.

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By hall_simon
22nd Sep 2016 21:11

Thanks for your replies. Active NFFE would seem to fit the criteria. It confused me the reference to passive income but as long as it's not more than 50% then still qualifies as Active.

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RLI
By lionofludesch
23rd Sep 2016 10:08

I had a client send me some form from NatWest full of this jargon.

We chose Active Non Financial Foreign Entity.

Not sure what relevance it had for this new company undertaking domestic and commercial cleaning. She's hardly going to be hoovering a client's office in Boise, Idaho from her base in Pudsey.

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By David Treitel
23rd Sep 2016 13:45

But you'd still want to know if the company owner is a US person in case the owner has any individual US filing obligations.

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