Subscription instructions and definitions

Why is my information collected? 

All Finnish financial institutions, including fund management companies, are required to collect and report, at request, to local competent authorities certain information about their clients, such as the country of tax residency of the client. This obligation is based on common reporting standard of the OECD, FATCA laws of the USA and local legislation. Financial institutions are required by FATCA to identify persons that are reporting to the USA. If you are tax resident in another state than Finland and that state is participating in the international exchange of taxation information under CRS or FATCA regulative framework, GRIT Fund Management Company Ltd is obligated to convey information given on this self-certification form to third parties, including the Finnish tax authority, and annually declare to the Finnish tax authority all financial accounts (including those relating to fund units) you may hold directly or indirectly to fulfil its obligations. 

How is my information processed? 

GRIT Fund Management Company (”GRIT”) processes information given on this form or personal data registered in relation to this form for the purposes of managing client relations and to fulfil its regulatory obligations. Personal data is processed according to applicable laws. Further information on the data processing and privacy is available in a separate data protection policy, which is also available online on the company’s website at www.gritfundservices.fi/privacy. The policy contains information on how GRIT Fund Management Company processes its clients’ personal data, what rights the registered data subjects have and how they can exercise their rights. 

GRIT may process personal data registered in relation to this form for the purposes of managing its day-to-day relationship with its clients. Personal data may be processed for the following purposes: To dealing with regulatory inquiries, applications, client identification related to client contracts and dealing with enforcement measures, for example measures of the different authorities, e.g. consignment lists. Other entities belonging to GRIT Governance group or co-operation partners of GRIT may process related personal data according to applicable laws and their internal policies. 

What is CRS? 

CRS is the Common Reporting Standard issued by the OECD, under which the countries that have concluded Competent Authority Agreements must exchange financial account information and information concerning certain account holders between jurisdictions. CRS requires financial institutions to identify customers with a tax residence in another state than Finland and report information concerning their financial accounts (including fund units and holdings) to local tax authorities. In practice, GRIT is obligated to reports its clients’ transactions and holdings annually to the Finnish Tax Authority, if the client is tax resident in another state than Finland. The Finnish Tax Authority exchanges the information to the tax authorities of/with fund units with other participating CRS countries competent authorities. For more information you may visit the website of the Finnish Tax Authority at: https://www.vero.fi/en/businesses-and-corporations/about-corporate-taxes/financial-sector/fatca-crs-and-dac2/general-information/. 

In Finland’s legislation, the regulations concerning CRS are included in the act on the transposition of the directive (1703/2015) and sections 17 b, c and d § of the act on tax procedure (1704/2015, 226/2016), the Tax Authority’s decision on providing information on the financial accounts (A35/200/2016) and in the Finnish Act on administrative cooperation in tax matters 1703/2015. 

What is the country of tax residency for an individual person? 

As a main rule, a natural person with a permanent home and residence in Finland or staying in Finland for a continuous period of at least six months is considered a tax resident of Finland (subject to general tax liability). Temporary absence from Finland does not affect the aforementioned continuous period. A Finnish citizen can be considered to be a Finnish tax resident despite living in a foreign country for the year of relocation and for the three following calendar years unless he/she demonstrates that during the relevant tax year he/she no longer has any economic and social ties that connect him/her to Finland. A person may be a tax resident of more than one country, depending on the laws and regulations of individual countries. GRIT does not provide tax advice to its clients, neither takes responsibility for these accuracy or suitability of these indicative instructions and their applicability for an individual case. 

What is Taxpayer Identification Number (TIN)? 

A Taxpayer Identification Number or TIN for short, or its functional equivalent in the absence of TIN is a unique combination of letter or numbers assigned by a jurisdiction to an individual. The TIN is used to identify the individual for the purposes of administering the tax laws of such jurisdiction. Some jurisdictions do not issue a TIN. In Finland and Denmarkj, the TIN is an individual’s social security number or the business ID of an entity. 

When is USA considered a country of tax residency?

Your country of tax residency is the USA if

  • you were born or reside in the US,
  • you are a US citizen (including dual citizenship),
  • you have a residence permit or a valid work permit (“Green Card”), or
  • you have resided in the U.S for a certain period, usually more than 183 days during a 12-month period. 

ENTITIES/COMPANIES

What is the country of tax residency for an entity?

As a main rule, an entity’s country of tax residency is Finland, if the entity is a Finnish legal entity. Finnish legal entities are legal entities registered in Finland. Legal entities established or registered outside Finland (foreign legal entities) are not considered to be Finnish tax residents even if their effective management is located in Finland. The branches an entity might have in other countries do not usually affect the entity’s country of tax residency. Legal entities that are Finnish tax residents include limited liability companies, economic associations, non-profit organizations, registered religious organizations and foundations. In case of doubt, a tax specialist or local tax authorities must be consulted. GRIT does not provide tax advice to its clients, neither takes responsibility for the accuracy or suitability of these indicative instructions and their applicability for an individual case.

If the form is not suitable for the disclosure of your FATCA status, for example in the case of a non-participating financial institution, you may use a W-8BEN-E form instead.

Who is a controlling person?

A controlling person refers to a natural person who exercises control over the entity (e.g. holding of over 25 % in the entity).

What is an Active Non-Financial Entity (Active NFE)?

An entity, other than a financial institution, is considered to be an Active NFE if:

  1. more than 50 % of its income derives from active operations, i.e. the sale of goods and services (see below passive income definition) and
  2. more than 50 % of its assets are related to the sale of goods and services.

Active NFE can refer to the following entities:

  • Active NFEs by reason of income and assets,
  • Publicly traded Active NFEs – the stock of the entity or a related entity is regularly traded on established securities markets,
  • Government entities, international organisations, or their wholly-owned entities,
  • Holding companies belonging to the same group as an NFE
  • Start-ups not yet operating a business and having no prior operating history (in the past 2 years),
  • Entities that are liquidating or emerging from bankruptcy, or
  • Treasury centres that primarily engage in financing or hedging transaction with a group company.