FATCA is a US law, effective 1 July 2014, which impacts investors worldwide. FATCA attempts to minimise US income tax avoidance by US persons investing in assets outside the US, including through their investments in Foreign Financial Institutions. FATCA requires reporting of US persons' direct and indirect ownership of non-US accounts and non-US entities to the US Internal Revenue Service (IRS).

The Australian Government has entered into an Inter-Governmental Agreement (IGA) with the Government of the United States of America for reciprocal exchange of taxpayer information. Under the IGA, Financial Institutions operating in Australia report information to the Australian Taxation Office (ATO) rather than the US IRS. The ATO may then pass the information on to the US IRS.

Each of the Vanguard Investor Funds is expected to be a ‘Foreign Financial Institution' (FFI) under the IGA and Vanguard intends to comply with its FATCA obligations, as determined by Australian law implemented for the purposes of compliance with the IGA. These laws apply to all Financial Institutions offering bank or deposit accounts, investment funds, custodial accounts and certain insurance accounts in Australia.

In order for the Funds to comply with these obligations, Vanguard will collect certain information about you as necessary to verify your FATCA status.

Vanguard is required to provide information about the following investors to the ATO:

  • Investors identified as US citizens or tax residents (information about corporations and trusts with US substantial owners or controlling persons will also be reported).
  • Investors who do not confirm their FATCA status.
  • Certain Financial Institutions that do not meet their FATCA obligations (Non-participating Foreign Financial Institutions).

Vanguard is not able to provide tax advice and cannot determine the impact or compliance obligations of FATCA or the IGA for investors' business activities. Vanguard strongly encourages investors to seek the advice of an experienced tax advisor to determine what actions investors may need to take.

FATCA - Instructions to complete application forms

How to complete the "FATCA status" section of the Application Form

This section is part of the identification requirements related to FATCA.

Vanguard is not able to provide you with tax advice in respect of FATCA or the IGA and we strongly encourage you to seek the advice of an experienced tax adviser in relation to completing this application form.

Click the relevant link below, for instructions on how to complete the "FATCA status" section of the Application Form:


Individuals

The "FATCA status" section of the Application Form must be completed by individual investors (including Joint Investors & Sole Traders). Please tick the box to indicate if you are US citizen or resident of the US for tax purposes and provide your US Taxpayer Identification Number (TIN).

What is a US citizen or resident of the US for tax purposes?
US citizen or resident of the US for tax purposes includes:

  • Anyone born in the US (who hasn't renounced their US citizenship).
  • A US citizen (including persons with dual or multiple citizenships.
  • US lawful permanent residents (eg green card holders).

If you have a US address, a US telephone number, a US passport, a US drivers' licence or a US birth certificate, this may indicate that you are a US person unless you can provide documentary evidence that you are not a US citizen or resident for tax purposes.
If you provide a US address or phone number, you must either:

  • Tick the YES option under the "FATCA status" section of the Application Form; OR
  • Provide documentary evidence that you are not a US resident or citizen for tax purposes.

If you think you may be a resident of the US for tax purposes, but are not certain, you should seek specialist tax advice.
If you do not provide the information about your FATCA status, we may be required to provide your information to the ATO.

What is a US TIN?
If you are a US citizen or resident for tax purposes, please provide your US Taxpayer Identification Number (TIN) - this is a nine digit number and could be a Social Security Number (SSN) or an Individual Taxpayer Identification Number (ITIN). Note: this is NOT your Australian TFN.

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Regulated trusts

Self-managed superannuation funds
Please select the box "Australian Regulated Superannuation Fund". All superannuation funds are exempt entities and information about these entities is not required to be reported to the ATO.

Superannuation funds
If the account holder is an APRA regulated superannuation fund, government superannuation fund or pooled superannuation trust, please select the box "Australian Regulated Superannuation Fund". All superannuation funds are exempt entities and information about these entities is not required to be reported to the ATO.

Australian managed investment schemes and other regulated trusts
Registered Australian managed investment schemes may be "Financial Institutions". Please see below for more information on the meaning of a "Financial Institution". If the trust is a "Financial Institution", please select the "Financial Institution" box and provide your Global Intermediary Identification Number (GIIN). The GIIN is a unique ID number that you would have received from the IRS when you registered to be a Financial Institution for FATCA.

Financial Institutions
A trust may be a Financial Institution if it is an investment entity that trades in financial assets or invests, administers, manages funds, money or certain financial assets on behalf of other persons. For further information about the definition, please see: http://www.irs.gov/Businesses/Corporations/Information-for-Foreign-Financial-Institutions.

If the trust is a Financial Institution or has a trustee that is a Financial Institution, please select the "Financial Institution" box and provide your Global Intermediary Identification Number (GIIN). The GIIN is a unique ID number that you would have received from the IRS when you registered to be a Financial Institution for FATCA.

If you do not have a GIIN, please provide your FATCA Status as one of the following:

  • Deemed Compliant FFI.
  • Excepted FFI.
  • Exempt beneficial owner.
  • Non-participating FFI.

Annex II of the IGA between Australia and the US sets out which organisations are "Deemed Compliant FFIs", "Excepted FFIs", "Exempt beneficial owners". Please see the IGA here: http://www.treasury.gov.au/Policy-Topics/Taxation/Tax-Treaties/HTML/Intergovernmental-Agreement. Information about these types of entities is not required to be reported to the ATO.

If you do not fall within any of these categories, you may be a Non-participating FFI (ie a Financial Institution that is not exempt, but has not registered for FATCA). If you are a Non-participating FFI, information about your account is required to be reported to the ATO. For information about registering for FATCA, please see the US Internal Revenue Service website: http://www.irs.gov/Businesses/Corporations/Foreign-Account-Tax-Compliance-Act-FATCA

US Trusts
If the account holder is a trust that is subject to the laws of the US, please select the box "US Trust".

Please provide your US Taxpayer Identification Number (TIN) - this is a nine digit number and could be a Social Security Number (SSN) or an Individual Taxpayer Identification Number (ITIN). Note: this is NOT your Australian TFN.

Certain US entities are exempt in the US from tax reporting, including US banks and a US retirement plan. If you are aware of any exemption applying to the US Trust, please answer "YES" to the question "Is the Trust an exempt payee for US tax purposes?" If you answer NO to this question, information about this account will be required to be reported to the ATO.

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Unregulated trusts

Charitable trusts
If the trust is not a US Trust or a Financial Institution, please select the box "Family Trust/Unit Trust/Other Trust".

Please consider whether the trust derives more than 50% of its gross income from investment activities or whether 50% of its assets are held to produce investment income. It is likely that most charitable trusts would answer "NO" to this question.

Deceased estates or testamentary trusts
Please select the box "Deceased Estates (excluding US Deceased Estates)".

Family trusts
If the trust is not a US Trust, Financial Institution or a superannuation fund, please select the box "Family Trust/Unit Trust/Other Trust".

Please consider whether the trust derives more than 50% of its gross income from investment activities or whether 50% of its assets are held to produce investment income. If it does not, please answer "NO" to this question.

If the trust does derive most of its income from investment activities or most of its assets are held to produce investment income, please answer "YES" to this question. If you answer "YES", you must answer the question whether any of the trustee beneficiaries, trustees or settlors are US citizens or residents for tax purposes. If you answer "YES" again, you must provide their name, address and US Taxpayer Identification Number (TIN) - this is a nine digit number and could be a US Social Security Number (SSN) or an Individual Taxpayer Identification Number (ITIN) issued in the US. Note: this is NOT your Australian TFN.

Financial Institutions
A trust may be a Financial Institution if it is an investment entity that trades in financial assets or invests, administers, manages funds, money or certain financial assets on behalf of other persons. For further information about the definition, please see: http://www.irs.gov/Businesses/Corporations/Information-for-Foreign-Financial-Institutions.

If the trust is a Financial Institution or has a trustee that is a Financial Institution, please select the "Financial Institution" box and provide your Global Intermediary Identification Number (GIIN). The GIIN is a unique ID number that you would have received from the IRS when you registered to be a Financial Institution for FATCA.

If you do not have a GIIN, please provide your FATCA Status as one of the following:

  • Deemed Compliant FFI.
  • Excepted FFI.
  • Exempt beneficial owner.
  • Non-participating FFI.

Annex II of the IGA between Australia and the US sets out which organisations are "Deemed Compliant FFIs", "Excepted FFIs", "Exempt beneficial owners". Please see the IGA here: http://www.treasury.gov.au/Policy-Topics/Taxation/Tax-Treaties/HTML/Intergovernmental-Agreement. Information about these types of entities is not required to be reported to the ATO.

If you do not fall within any of these categories, you may be a non-participating FFI (ie a Financial Institution that is not exempt, but has not registered for FATCA). If you are a Non-participating FFI, information about your account is required to be reported to the ATO.

For information about registering for FATCA, please see the US Internal Revenue Service website: http://www.irs.gov/Businesses/Corporations/Foreign-Account-Tax-Compliance-Act-FATCA.

US Trusts
If the account holder is a trust that is subject to the laws of the US, please select the box "US Trust".

Certain US entities are exempt in the US from tax reporting, including US banks and a US retirement plan. If you are aware of any exemption applying to the US trust, please answer "YES" to the question "Is the Trust an exempt payee for US tax purposes?" If you answer NO to this question, information about this account will be required to be reported to the ATO.

Please provide your US Taxpayer Identification Number (TIN) - Please provide your US Taxpayer Identification Number (TIN) - this is a nine digit number and could be a Social Security Number (SSN) or an Individual Taxpayer Identification Number (ITIN). Note: this is NOT your Australian TFN.

Other Trusts
Please consider whether the trust derives more than 50% of its gross income from investment activities or whether 50% of its assets are held to produce investment income. If it does not, please answer "NO" to this question.

If the trust does derive most of its income from investment activities or most of its assets are held to produce investment income, please answer "YES" to this question. If you answer "YES", you must answer the question whether any of the trustee beneficiaries, trustees or settlors are US citizens or residents for tax purposes. If you answer "YES" again, you must provide their name, address and US Taxpayer Identification Number (TIN) - this is a nine digit number and could be a US Social Security Number (SSN) or Individual Taxpayer Identification Number (ITIN) issued in the US. Note: this is NOT your Australian TFN.

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Companies

Proprietary company
If the company has "Pty" or "proprietary" in the name or is a private company (but NOT a US company or a Financial Institution), please tick the "Non-Financial Proprietary Company (excluding US companies)" box.
Please consider whether the company derives more than 50% of its gross income from investment activities or whether 50% of its assets are held to produce investment income. If it does not, please answer "NO" to this question.

If the company does derive most of its income from investment activities or most of its assets are held to produce investment income, please answer "YES" to this question. If you answer "YES", you must answer the question whether any of the beneficial owners who own more than 25% of the company's issued capital are US citizens or residents for tax purposes. If you answer "YES" again, you must provide their name, address and US Taxpayer Identification Number (TIN) - this is a nine digit number and could be a US Social Security Number (SSN) or Individual Taxpayer Identification Number (ITIN) issued in the US.

Public company
If the company is listed please tick the box "Non-Financial Public Company (excluding US companies)".

Financial Institution
A company may be a Financial Institution if it is an investment entity that trades in financial assets or invests, administers, manages funds, money or certain financial assets on behalf of other persons. For further information about the definition, please see: http://www.irs.gov/Businesses/Corporations/Information-for-Foreign-Financial-Institutions.
If the company is a Financial Institution, please select the "Financial Institution" box and provide your Global Intermediary Identification Number (GIIN). The GIIN is a unique ID number that you would have received from the IRS when you registered to be a Financial Institution for FATCA.

If you do not have a GIIN, please provide your FATCA Status as one of the following:

  • Deemed Compliant FFI.
  • Excepted FFI.
  • Exempt beneficial owner.
  • Non-participating FFI.

Annex II of the IGA between Australia and the US sets out which organisations are "Deemed Compliant FFIs", "Excepted FFIs", "Exempt beneficial owners". Please see the IGA here: http://www.treasury.gov.au/Policy-Topics/Taxation/Tax-Treaties/HTML/Intergovernmental-Agreement. Information about these types of entities is not required to be reported to the ATO.

If you do not fall within any of these categories, you may be a Non-participating FFI (ie a Financial Institution that is not exempt, but has not registered for FATCA). If you are a Non-participating FFI, information about your account is required to be reported to the ATO.

For information about registering for FATCA, please see the US Internal Revenue Service website: http://www.irs.gov/Businesses/Corporations/Foreign-Account-Tax-Compliance-Act-FATCA

US company
If you are a company created in the US, established under the laws of the US or a US taxpayer please tick the "US Government Body" box and provide the company's US Taxpayer Identification Number.

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Partnerships

Partnerships (excluding US Partnerships or Financial Institutions)
Please consider whether the partnership derives more than 50% of its gross income from investment activities or whether 50% of its assets are held to produce investment income. If it does not, please answer "NO" to this question.

If the partnership does derive most of its income from investment activities or most of its assets are held to produce investment income, please answer "YES" to this question. If you answer "YES", you must answer the question whether any of the partners are US citizens or residents for tax purposes. If you answer "YES" again, you must provide their name, address and US Taxpayer Identification Number (TIN) - this is a nine digit number and could be a US Social Security Number (SSN) or Individual Taxpayer Identification Number (ITIN) issued in the US. Note: this is NOT your Australian TFN.

Financial Institution Partnerships
A partnership may be a Financial Institution if it is an investment entity that trades in financial assets or invests, administers, manages funds, money or certain financial assets on behalf of other persons. For further information about the definition, please see: http://www.irs.gov/Businesses/Corporations/Information-for-Foreign-Financial-Institutions.
If the partnership is a Financial Institution, please select the "Financial Institution" box and provide your Global Intermediary Identification Number (GIIN). The GIIN is a unique ID number that you would have received from the IRS when you registered to be a Financial Institution for FATCA.

If you do not have a GIIN, please provide your FATCA Status as one of the following:

  • Deemed Compliant FFI.
  • Excepted FFI.
  • Exempt beneficial owner.
  • Non-participating FFI.

Annex II of the IGA between Australia and the US sets out which organisations are "Deemed Compliant FFIs", "Excepted FFIs", "Exempt beneficial owners". Please see the IGA here: http://www.treasury.gov.au/Policy-Topics/Taxation/Tax-Treaties/HTML/Intergovernmental-Agreement. Information about these types of entities is not required to be reported to the ATO.

If you do not fall within any of these categories, you may be a Non-Participating FFI (ie a Financial Institution that is not exempt, but has not registered for FATCA). If you are a Non-participating FFI, information about your account is required to be reported to the ATO.

For information about registering for FATCA, please see the US Internal Revenue Service website: http://www.irs.gov/Businesses/Corporations/Foreign-Account-Tax-Compliance-Act-FATCA

US Partnership
If the partnership is created in the US or established under the laws of the US or is a US taxpayer, please tick the "US Partnership" box and provide the partnership's US Taxpayer Identification Number. If you are aware of any exemption applying to the US partnership from US tax reporting, please answer "YES" to the question "Is the Trust an exempt payee for US tax purposes?" If you answer NO to this question, information about this account will be required to be reported to the ATO.

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Associations

Please select the box "Associations".

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