Foreign Account Tax Compliance Act (FATCA)

1. What is the U.S. Foreign Account Tax Compliance Act (FATCA)?

FATCA, short for the Foreign Account Tax Compliance Act, is a regulation enacted by the U.S. to prevent American taxpayers from evading U.S. taxes.

The Act was enacted by the U.S. Department of the Treasury (U.S. Treasury) and the U.S. Internal Revenue Service (IRS) to prevent Americans from using financial institutions to evade paying taxes on income or assets due to the U.S. and encourage them to comply more strictly with tax laws.

It is expected that most countries/regions in the world will sign an Intergovernmental Agreement (IGA) with the U.S. government on FATCA compliance. These agreements will make FATCA legislation part of the local law in these countries.

2. Is Longbridge the only financial institution that complies with FATCA?

No. All banks and other financial institutions will be affected by FATCA, but their responses to adopting FATCA vary. Longbridge is committed to full compliance with FATCA in all countries/regions where it operates.

3. Why does FATCA concern me?

Under the Act, you are required to declare and confirm your tax status to us in accordance with FATCA requirements, and your financial information may be reported.

4. Which customers are required to declare their tax status?

All customers. All customers are required to complete the W-8 series form to confirm their non-U.S. tax status, or fill out the W-9 form to confirm their U.S. tax status. Only the information of U.S. account holders will be reported.

5. Which customers are affected by FATCA legislation?

FATCA legislation will affect individuals and business customers who are considered "Americans" for U.S. tax purposes. FATCA legislation will also affect certain types of businesses whose owners are Americans.

Americans include but are not limited to:

• U.S. citizens, including individuals born in the U.S. but living in other countries/regions (without renunciation of their U.S. citizenship)

• People living in the U.S., including the U.S. green card holders

• Specific people who live in the U.S. for a longer period of time each year

• U.S. corporations, U.S. partnerships, U.S. estates, and U.S. trusts

6. How often do I need to provide information to comply with FATCA regulations?

Compliance with FATCA is an ongoing process. If your account information changes, we may need to contact you to collect additional information so that we can update your account category in accordance with FATCA.

7. What are the responsibilities of customers?

All customers fill out the applicable form to confirm their U.S. tax status when opening an account, and then reconfirm their U.S. tax status every 3 years. If there are any changes to their U.S. tax status during the three-year period, customers are obligated to promptly notify Longbridge Securities Hong Kong. According to the relevant filing instructions issued by the U.S. IRS, non-U.S. persons are subject to withholding tax on certain U.S.-sourced income. However, non-U.S. persons may be eligible for tax relief under certain conditions by submitting the appropriate W-8 form.

8. If I want to browse information about FATCA, where can I find it?

For more information, please refer to the U.S. Internal Revenue Service website (English version only).