A GIIN, or Global Intermediary Identification Number, is a unique identifier assigned to a Participating Foreign Financial Institution (PFFI) or a Registered Deemed-Compliant Financial Institution (FFI). It serves as an identifier for each jurisdiction, including the FI's jurisdiction of residence, where the FI maintains a branch not treated as a Limited Branch.
In simpler terms, a GIIN helps tax authorities, particularly the IRS in the United States, identify and track financial institutions worldwide that are participating in international tax compliance initiatives like FATCA (Foreign Account Tax Compliance Act). This ensures that financial institutions are transparent and compliant with reporting requirements, preventing tax evasion by U.S. persons holding accounts outside the U.S.
Here's a breakdown:
- Purpose: To uniquely identify financial institutions for tax reporting and compliance purposes.
- Who gets one: Participating Foreign Financial Institutions (PFFIs) and Registered Deemed-Compliant FFIs.
- Issuing Authority: Generally, the IRS (Internal Revenue Service) in the context of FATCA.
- Significance: Enables the IRS to easily track and verify the tax compliance of foreign financial institutions.
- Use: Used when reporting financial account information of U.S. persons.
Therefore, a GIIN is a crucial element in the global effort to combat tax evasion and promote transparency in international financial transactions. It represents a commitment by financial institutions to adhere to international tax standards.
