A Global Intermediary Identification Number (GIIN) is a unique identifier issued by the IRS to financial institutions and other entities participating in the Foreign Account Tax Compliance Act (FATCA) program. FATCA aims to combat tax evasion by U.S. taxpayers holding accounts and assets abroad.
Key Features of the GIIN
- Purpose:
- Identifies financial institutions registered under FATCA.
- Verifies compliance with FATCA requirements, such as reporting financial account information of U.S. taxpayers to the IRS.
- Structure:
- A GIIN consists of 19 characters, including letters and numbers, divided into four sections:
- First 6 characters: FATCA ID for the financial institution.
- Next 9 characters: “Financial Institution Type” and location code.
- Final 4 characters: Check digits for validation.
- A GIIN consists of 19 characters, including letters and numbers, divided into four sections:
- Entities Requiring a GIIN:
- Foreign Financial Institutions (FFIs) such as banks, investment funds, and insurance companies.
- Certain Non-Financial Foreign Entities (NFFEs) if they choose to participate.
- U.S. financial institutions acting as lead members of expanded affiliated groups.
- GIIN Lookup:
- The IRS maintains a FATCA FFI List Search and Download Tool that allows users to verify the GIIN and FATCA status of financial institutions globally.
How to Obtain a GIIN
- Entities must register through the FATCA Registration System on the IRS website.
- Upon approval, the IRS issues the GIIN, which confirms FATCA compliance.
Importance of a GIIN
- Enables financial institutions to avoid withholding penalties on U.S.-sourced income.
- Confirms the institution is in compliance with FATCA requirements, facilitating smoother international financial transactions.
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