Common use of General Disclosure on Foreign Account Tax Compliance Act Clause in Contracts

General Disclosure on Foreign Account Tax Compliance Act. 17.1 Under the U.S. Foreign Account Tax Compliance Act, or FATCA, all non-United States entities in a broadly defined class of financial institutions (FIs), are required to comply with an expansive documentation and reporting regime, or, beginning from July 1, 2014, be subject to a 30% United States withholding tax on certain U.S. payments constituting "withholdable payments" (beginning in 2017, a 30% withholding tax applies to gross proceeds from the sale of assets which could produce withholdable payments and foreign passthru payments). Certain passive non-U.S. entities which are not FIs are required to either certify they have no substantial U.S. beneficial ownership or report certain information with respect to their substantial U.S. beneficial ownership, or, beginning from July 1, 2014, become subject to the same 30% U.S. withholding tax as described above. The reporting obligations imposed under FATCA generally require FIs to obtain and disclose information about certain clients to the United States Internal Revenue Service (IRS). 17.2 The impact of FATCA on FIs in a specific country may be modified by an intergovernmental agreement (IGA) between the United States and that country. The United States has entered into an IGA with Hong Kong (Hong Kong IGA). 17.3 A Hong Kong IGA should apply to the Galaxy International Securities and/or Galaxy International Futures as it is resident in Hong Kong. Under the Hong Kong IGA, the Galaxy International Securities and/or Galaxy International Futures is obligated to apply prescribed due diligence procedures, and report “U.S. Accounts” and account information with respect to “Nonparticipating Financial Institutions” to the IRS. 17.4 Client may be requested to provide a self-certification or other documentation to the Galaxy International Securities and/or Galaxy International Futures in order to establish their tax residence. Furthermore, if there is any change in circumstances that would affect the Client's tax residence statuses or there is reason for the Galaxy International Securities and/or Galaxy International Futures to know that the self-certification is incorrect or unreliable, a new self-certification and/or additional documentation may be required from the Client.

General Disclosure on Foreign Account Tax Compliance Act. 17.1 18.1 Under the U.S. Foreign Account Tax Compliance Act, or FATCA, all non-United States entities in a broadly defined class of financial institutions (FIs), are required to comply with an expansive documentation and reporting regime, or, beginning from July 1, 2014, be subject to a 30% United States withholding tax on certain U.S. payments constituting "withholdable payments" (beginning in 2017, a 30% withholding tax applies to gross proceeds from the sale of assets which could produce withholdable payments and foreign passthru payments). Certain passive non-U.S. entities which are not FIs are required to either certify they have no substantial U.S. beneficial ownership or report certain information with respect to their substantial U.S. beneficial ownership, or, beginning from July 1, 2014, become subject to the same 30% U.S. withholding tax as described above. The reporting obligations imposed under FATCA generally require FIs to obtain and disclose information about certain clients to the United States Internal Revenue Service (IRS). 17.2 18.2 The impact of FATCA on FIs in a specific country may be modified by an intergovernmental agreement (IGA) between the United States and that country. The United States has entered into an IGA with Hong Kong (Hong Kong IGA). 17.3 18.3 A Hong Kong IGA should apply to the Galaxy International Securities and/or Galaxy International Futures as it is resident in Hong Kong. Under the Hong Kong IGA, the Galaxy International Securities and/or Galaxy International Futures is obligated to apply prescribed due diligence procedures, and report “U.S. Accounts” and account information with respect to “Nonparticipating Financial Institutions” to the IRS. 17.4 18.4 Client may be requested to provide a self-certification or other documentation to the Galaxy International Securities and/or Galaxy International Futures in order to establish their tax residence. Furthermore, if there is any change in circumstances that would affect the Client's tax residence statuses or there is reason for the Galaxy International Securities and/or Galaxy International Futures to know that the self-certification is incorrect or unreliable, a new self-certification and/or additional documentation may be required from the Client.