Disclaimer: The following table is for information purposes only and is not exhaustive. It is intended only to illustrate examples of the CRS entity type. It should not be considered tax or legal advice.

Wittix will not be held liable for any action taken (or refrained from being taken) in connection with the information concerned. You are fully responsible for confirmation of your CRS entity type.

In case of uncertainty, please seek professional tax or legal advice.

Active NonFinancial Entity (Active NFE)

Definition

Example

An Active NFE generally refers to an entity that operates an active trade or business with <50% passive income (gross) or has <50% assets that produce passive income (Passive income includes dividends and interest).

It also includes listed companies, Governmental entities, International Organisations (e.g. United Nation or NATO), Central banks, or their subsidiaries; start-up NFEs, NFEs that are liquidating/emerging from bankruptcy; and non-profit NFEs.

An Active NFE generally refers to an entity with trading activities including manufacturers, wholesalers, retailers, restaurants and bars, hotels, construction companies, health, and social work

Passive NonFinancial Entity (Passive NFE)

Definition

Example

A Passive NFE generally refers to entities, organizations, or companies that are in receipt of passive income or hold passive assets.

It also includes an "Investment entity that is managed by another financial institution and located in a non-participating jurisdiction".

A Passive NFE generally refers to entities with no trading activities and receive income or dividend generated from its assets including properties and shares etc.

Financial Institutions (FI)

Definition

Example

FI generally includes all banks, entities with custody of financial assets, certain types of insurance companies, asset management companies and certain investment funds or investment vehicles, an entity that appoints a trustee company, an entity that a third party asset manager or acts as the holding company to a group of companies carrying on a financial business, as well as certain types of treasury and group financing companies.

It excludes "Investment entity that is managed by another financial institution and located in a non-participating jurisdiction" which is classified as Passive NFE under the CRS.

FI generally includes banks, security dealing companies, investment management services, insurance companies, fund managers, trusts & trustees.

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