Non-US Domiciled Funds/ETFs and CRS

[Rentonx]

I'm an Argentina resident about to invest through a US broker in Ireland & Luxemburg-domiciled Funds and ETFs (which include US and non-US assets).

My question is: when it comes to CRS, will the assets I hold in the funds or ETFs be reported to Argentina through CRS (because Ireland and Luxemburg, the countries where the funds are domiciled are part of CRS) or will they not (because the US, where my broker is domiciled, is not part of CRS)?

 

[zzzzzz]

If your broker is in⁢ US, your brokerage account and income will be reported to Argentina via FATCA agreement.

 

[Rentonx]

@zzzzzz thank you kindly for your reply. So you are saying that a fund or‌ ETF's domicile country bears no relationship with how reporting to the investor's country would work?‍ Just the brokerage's domicile matter for this?

 

[JustAnotherNomad]

Will they really report automatically under FATCA? Is it not only on request from the‌ Argentinian authorities?

 

[Martin Everson]

Yes FATCA is‌ bilateral and automatic and people have been reported already.

Some good reading in this thread‍ before asking further question on topic hap¤#".

https://www.offshorecorptalk.com/th...n-us-person-deposits-in-them.22676/post-68608

 

[JustAnotherNomad]

Yeah, but Argentina is not on this list:
https://home.treasury.gov/policy-issues/tax-policy/foreign-account-tax-compliance-act
This article is a couple years‌ old, but it doesn't sound like there's automatic reporting for Argentina:
https://canosa.com/argentina-united...-agreement-implementing-fatca-possibly-iga-1/

 

[Rentonx]

My question was not really about Argentina and FACTA, but about which country reports your‌ holdings in Funds and ETFs. Is it the country where the fund/ETF is domiciled, or‍ the country where your broker is domiciled?

 

[Martin Everson]

Answer is both can report depending on how‍ you hold the assets either directly or via a broker.

https://assets.kpmg/content/dam/kpm...-investment-funds-and-investment-managers.pdf

 

[Rentonx]

@Martin Everson Thanks for that! In my case, I would hold an Ireland fund or‌ ETF via a U.S. broker. I understand the U.S. broker would report under FACTA, but‍ would I get reported by the Ireland fund under CRS?

 

[zzzzzz]

USA brokers (at⁠ least IB) hold assests in their name, so if you have some ETF's form Ireland,⁤ IB is listed outside as "owner", not you.

Apparently USA doesn't have FATCA agreement with⁣ Argentina. And no reporting via CRS, since US didn't sign CRS agreement.

 

[Martin Everson]

Good question. I honestly can't answer that because you would need to ask the⁤ broker on their custody and reporting arrangements. Brokers custody assets with different custodians, may hold⁣ in nominee name etc and often in different geographical locations which ultimately maybe subject to⁢ different handling and reporting rules etc. So ask broker.

Does not matter as its down to each︁ FI to register with FATCA and not the country. A FATCA agreement just mandates a︂ countries FI's to register with FATCA. Each FI in Argentina can voluntarily register for FATCA︃ and obtain a GIIN number for FATCA reporting. Looking at the FATCA register below of︄ FI's in Argentina I see 1,493 FI's registered voluntarily...lol eek¤%&.

https://apps.irs.gov/app/fatcaFfiList/flu.jsf

 

[JustAnotherNomad]

Surely that must be about reporting on US⁤ citizens/residents, not the other way around? It wouldn't make sense for a US broker to⁣ report to all Argentinian FI's, just in case that person might also be a customer⁢ there?

 

[Rentonx]

Yes, as I understand it from sources here, that's the case. It's a unilateral agreement

 

[Martin Everson]

Yes for Argentina FI's that signed up it about reporting americans.

 

[zzzzzz]

I assume @Rentonx is Argentinian citizen and resident, in that case it doesn't‌ matter.