A GIIN number is a unique identifier. It is a Global Intermediary Identification Number assigned by the FATCA Registration System to financial institutions and direct reporting non-financial foreign entities. In simpler terms, it's like a tax ID number specifically for international financial institutions complying with FATCA.
Understanding GIINs in Detail
Here's a more structured breakdown:
-
What it stands for: Global Intermediary Identification Number.
-
Who assigns it: The FATCA Registration System (operated by the IRS - Internal Revenue Service of the United States).
-
Who gets one:
- Financial Institutions (FIs) that need to comply with FATCA.
- Direct Reporting Non-Financial Foreign Entities (NFFEs).
-
Why it's important: It allows the IRS to identify and track financial institutions worldwide for FATCA compliance. Without a valid GIIN, an FI may be subject to a 30% withholding tax on certain US-source payments.
Practical Insights
Think of a GIIN as a passport for financial institutions in the world of international finance and tax compliance. It's their key to demonstrating they're playing by the rules of FATCA.
