03.01 – Non-Financial Foreign Entities (NFFEs)

For the International Tax Compliance (Crown Dependencies and Gibraltar) Regulations 2014, a Non-Financial Foreign Entity will be an entity that is not a Financial Institution and is not resident in the jurisdiction to which it may be reported.When an entity is an NFFE and how it will need to be reported is set out in the example below.

Example

A UK Financial Institution maintains an account for a Passive Non-Financial Entity based in Guernsey:

  • For US reporting the account is held by a Passive NFFE and will only be a Reportable Account if one or more of the Controlling Persons is a US Specified Person.
  • For reporting to the Isle of Man, Jersey and Gibraltar the account is also held by a Passive NFFE and will only be a Reportable Account if one or more of the Controlling Persons is an Isle of Man, Jersey or Gibraltar Specified Person.
  • However, for Guernsey reporting the account is held by an entity that Guernsey Specified Person and the account will be a Reportable Account.

Financial Accounts that are held by Non-Financial Entities based in other jurisdictions, e.g. the US, will also be subject to due diligence. Where the account holder is found to be a Passive Non-Financial Entity, the account will be reportable if the entity has Controlling Persons who are Specified Persons.