What are the "US Person", "Passive NFFE", "Substantial U.S. Owner" and "Active NFFE"?

1.US Person

Incorporated, established, constituted or organised in the United States (US) or are subject to US Tax Laws. United States of America: including all 50 States of U.S. and the District of Columbia, U.S. Federal Territory (means the Commonwealth of Puerto Rico, the Commonwealth of the Northern Mariana Islands, Guam, American Samoa, or the U.S.Virgin Islands, etc).

2.Passive NFFE(Non-Financial Foreign Entity)

The Entity has more than 50 percent of the entity’s gross income for the preceding calendar year is passive income，and more than 50 percent of the assets held by the entity are assets that produce or are held for the production of passive .

3.Substantial U.S. Owner

With regard to a company, means any U.S. individual or U.S. entity who directly or indirectly exercises control more than 25% ownership or right to vote of an entity. In the case of a partnership, means any U.S. individual or U.S. entity who directly or indirectly holds more than 25% profit of equity or equity capital of a partnership. In the case of a trust, means any U.S. individual or U.S. entity who holds ownership of a trust, and directly or indirectly holds more than 25% beneficial right of a trust.

4.Active NFFE

Means the Entity meets any of the following criteria：

•     The Entity has less than 50 percent of the entity’s gross income for the preceding calendar year is passive income，and less than 50 percent of the assets held by the entity are assets that produce or are held for the production of passive .

•     The Entity whose stock is regularly traded on an established securities market, or who is a related entity of an listed entity.

•     The Entity is created as a holding company for holding the stock of, and providing financing and services to, Non-Financial Institution (s).

•     The Entity is not yet operating business, or is in the process of liquidation.

•     The Entity engages primarily in financing and hedging transactions with or for related entities within the Group, and all entities in the Group are Non-Financial Institutions.

•     The Entity is a non-profit organization. Passive income general includes: dividend and interest income from owning securities, interest from a bank account, rent from property, royalties other than those derived from an active trade or business , net gains from the sale of assets.