Iceland has agreed with the United States to exchange information on tax matters.
As a result, Arion must, in certain cases, obtain completed tax forms issued by US tax authorities, such as W-8BEN, from customers who hold American financial instruments.
US financial instruments are securities, i.e., stocks, bonds, and other financial instruments, where the issuer is registered in the United States, e.g., shares in Apple Inc., even if purchased on the German market, as the market of purchase is irrelevant.
Those who have income from the United States. This can include, for example, dividends from stocks, interest and/or repayment of bonds.
Those who are born in the United States, hold American citizenship, or have a domicile/residence in the United States.
Legal entities where any of the beneficial owners is American, i.e. holds U.S. citizenship, was born in the United States and/or has a domicile/residence in the United States.
Different tax forms apply depending on whether you are filing as an individual or as a legal entity, and whether the legal entity is U.S.-based.
The tax forms are related to the information exchange agreement between Iceland and the United States regarding the FATCA (Foreign Account Tax Compliance Act) tax legislation.
W-8BEN is a form filled out by individuals who are not US taxpayers to confirm their status in order to benefit from the rights provided under a double taxation treaty.
W-8BEN for individuals
W-8BEN for legal entities
Declaration of unchanged status
If you are a US taxpayer under US tax legislation, you may need to submit a different type of W-form. Arion Bank does not provide tax advice, so if you are uncertain about your tax situation, we encourage you to seek guidance from an advisor with expertise in tax matters.
Further information is available on the websites of the Icelandic Tax Authority and the US tax authorities.