Entity

It seems like you're referring to definitions of non-individuals and exclusions related to Foreign Financial Institutions (FFIs) and Excepted FFIs under regulations like the Common Reporting Standard (CRS) and the Foreign Account Tax Compliance Act (FATCA). Here's a breakdown:

• Legal Person or Legal Arrangement: This includes entities such as corporations, organizations, partnerships, trusts, or foundations. These entities are typically subject to reporting requirements under CRS and FATCA.
• Sole Trader Exclusion: Sole traders, also known as sole proprietors, are treated as private individuals under CRS/FATCA. They are not considered separate legal entities for reporting purposes.
• Excepted Foreign Financial Institution (FFI): These are entities that are excluded from the FFI definition and are not subject to withholding requirements. Examples of Excepted FFIs include:
  • Holding companies engaged in non-financial business.
  • Start-up companies primarily involved in non-financial business activities.
  • Liquidating or reorganizing non-financial entities.
  • Group hedge/financial companies that are non-financial and limited to affiliated entities.
  • Entities organized in US territories, which may be exempt or subject to different reporting requirements.

These exclusions help delineate which entities are subject to reporting and withholding requirements under CRS and FATCA, ensuring that financial institutions comply with international tax regulations and exchange information appropriately.