When you register a limited company through Tide you’re also applying for a Tide business current account. To complete the application you’ll need one of the following: either your passport, drivers licence or ID card.
NFE is a term that’s commonly used in the context of tax compliance – usually in relation to the Foreign Account Tax Compliance Act (FATCA), and the Common Reporting Standard (CRS).
What is an Active NFE?
An Active NFE earns a significant portion of its income from manufacturing, sales, providing services, or anything else that can be considered ‘active business operations’.
Active NFEs get more than 50% of their gross income from active trade or business, or have more than 50% of their assets in operational business activities that generate income.
What is a Passive NFE?
A Passive NFE gets more than 50% of its earnings as passive income – from interest, rents, dividends, and royalties.
There are different reporting requirements under FATCA and CRS, depending on whether a company is an Active or a Passive NFE. Understanding the difference between the two company types is crucial for international tax compliance.
