FATCA - The Foreign Account Tax Compliance Act
Porsche Bank Romania SA has been registered for FACTA purposes with the Internal Revenue Service with the "Registered Deemed-Compliant - Financial Institution (including a Reporting Financial Institution Reporting under a Model 1 IGA)" status.
The Global Intermediary Identification Number (GIIN) of PORSCHE BANK ROMANIA SA is V77N9R.00002.ME.642.
Romania has agreed to be included on the IGA1 list by the IRS, the agreement ratification between Romania and The United States of America to improve international tax compliance and implement FATCA measures was approved by the Romanian Government on May 28th, 2015.
FATCA (Foreign Account Tax Compliance Act) represents a US law named "tax compliance Act of foreign accounts", that requires foreign financial institutions (registered in a country than the US) to report US clients, including those living outside of US borders, to the US tax authorities (IRS - Internal Revenue Service). According to this legislation, the obligation was established for foreign financial institutions (including Romanian financial institutions) with which American citizens have accounts open, to automatically transmit, directly or through the fiscal authorities of their residence country, financial information related to US citizens or residents.
FATCA was issued with the purpose to prevent and reduce tax evasion generated by american residents' cross border activity, through tax payment avoidance by US taxpayers, using accounts opened at financial institutions outside the US or off-shore investment instruments.
According to FATCA requirements, foreign financial institutions must: identify and obtain information regarding customers that might be classified as US customers, based on specific criteria, named generic as "US indicia". This information is necessary to establish which are the reportable US customers.
FACTA requirements will apply to US customers (individual or legal entities controlled by US citizens), regardless if they are inside or outside of US borders.
Foreign Financial Institutions ("FFI") will be the most affected, because this will have to comply with FATCA requirements. If a financial institution decides not to comply with FATCA requirements, a withholding of 30% will be applied for certain transactions.
- A "US Person" will be considered a person who:
a) is a US Citizen; OR
b) is a permanent US Resident; OR
c) has a Green Card released by the US authorities.
- A "US Citizen" is a citizen who:
(i) is born in the US;
(ii) has received US citizenship.
US Indicia is information offered by clients which can lead to classifying a private or legal person owned/controlled by a shareholder / real beneficiary as being a US Person.
This US Indicia include:
- US Citizenship or US permanent residency (this includes owning a Green Card that allows residence in the US)
- Place of birth is the US
- Current address (domicile, residence, address) is in the US
- The only address is a post-aided address
- US phone number
- Power of attorney or signature authorization given to a person with US address (home, residence, address)
- Recurring payment orders from a Porsche Bank account to an account in the US
Identifying one of these clues will not lead to a immediate classification as a US Person, a confirmation will be necessary through presentation of a document at the bank's request. The document will be presented in a reasonable time, communicated by the bank.
The W-9 form represents the application for the Tax Identification Number. Its purpose is to request the Tax Identification Number (TIN) of the tax payer. It is used exclusively by the US Person, private or legal entity.
Please see the fill-in instructions for the W-9 form on the IRS web page http://www.irs.gov/pub/irs-pdf/iw9.pdf.
The W-8BEN form aims to identify non-US beneficial owners of accounts and transactions. It is used exclusively by individuals. Legal entities should use Form W-8BEN-E.
Please see the instructions for completing the W-8BEN form on the IRS website http://www.irs.gov/pub/irs-pdf/iw8ben.pdf.
W-8BEN-E aims to identify the legal entities or foreign financial institutions (FFI) outside the US who are the real beneficiaries of accounts or transactions. It is used exclusively by legal persons or foreign financial institutions. Individuals must use Form W-8BEN.