In order to align with FATCA requirements, Banca Transilvania SA has registered with the Internal Revenue Service as a participating institution, with the status of Registered Deemed Compliant FFI - Lead of an Expanded Affiliated Group.
What does FATCA mean?
FATCA = Foreign Account Tax Compliance Act / Foreign Account Compliance Act
FATCA is a legislative requirement — a tax compliance document — aimed at collecting data, by U.S. tax authorities, on accounts held by U.S. residents outside the United States.
Is Banca Transilvania a participant in FATCA?
Following the entry into force of the intergovernmental collaboration agreement concluded between the Romanian and U.S. tax authorities, in order to align with FATCA requirements, Banca Transilvania SA registered with the Internal Revenue Service as a participating institution, with the status of Registered Deemed Compliant FFI - Lead of an Expanded Affiliated Group.
The identification number (Global Intermediary Identification Number - GIIN) of Transilvania Bank is 4ID1WZ.00000.LE.642.
Also, the entities within the BT Financial Group impacted by FATCA requirements have registered on the Internal Revenue Service website as participating entities, having the following identification numbers (GIIN):
BT Securities: 4ID1WZ.00001.ME.642
BT Asset Management: 4ID1WZ.00002.ME.642 Branch of BT Italy: 4ID1WZ.00000.BR.380
Note: The BT Italia branch is subject to the requirements of the Italian legislation, following that the related reports will be made by BT Italia to the Italian tax authorities.
What is fatca's purpose?
FATCA aims to:
- prevent and combat tax evasion generated by the cross-border activity of U.S. residents
- increase the budget revenues by identifying all types of revenues obtained outside the U.S. territories by taxpayers to the U.S. budget
Are fatca provisions mandatory for financial institutions in Romania?
Romania, like most European countries, has concluded the Intergovernmental Agreement ("IGA") so that FATCA is applicable under the legislation of our country (Law no. 233/08.10.2015).
In this regard, all financial institutions in Romania have the obligation to identify taxpayers to the U.S. budget and to report their identification and financial data to the Romanian tax authorities in order to exchange the mutual exchange of information to be made between the Romanian and U.S. tax authorities.
Regardless of whether the forms required by law are filled in by customers or not, the legal provisions oblige financial institutions to report their data.
Is Banca Transilvania stricter than other banks in Romania in the application of FATCA?
Not.
Following the entry into force of the intergovernmental collaboration agreement concluded between the Romanian and U.S. tax authorities, in order to align with FATCA requirements, Banca Transilvania SA has registered with the Internal Revenue Service as a participating institution.
Thus, Banca Trasilvania complies with the provisions of Law nr. 233/08.10.2015, applicable to all financial institutions and other financial intermediaries in Romania.
If Banca Transilvania did not comply with FATCA's provisions, all of its and its clients' receipts having as source transactions made/initiated from the USA, such as dividends and interest paid by U.S. corporations, would be subject to a 30% withholding tax.
How are the bank's customers classified in terms of the date of initiation of the business relationship?
The starting date for the application of fatca provisions is 01.07.2014.
Natural and legal persons with whom the bank has entered into a business relationship
- before this date = pre-existing customers
- after this date = newly enrolled customers
What are the indices of the US ENTITY (legal entities)?
For pre-existing (non-cumulative) customers:
- U.S. country of registration;
- the address of the U.S. registered office (country);
- correspondence address (country) USA;
- U.S. tax residency (country);
- any of the beneficial owners of an entity that has any of the indices:
- U.S. citizenship;
- the country of birth of the USA;
- U.S. home address/residence/correspondence;
- id issued by a U.S. authority;
- tax residency in the US.
For newly enrolled (non-cumulative) customers:
- U.S. country of registration;
- the address of the registered office in the USA;
- any of the beneficial owners of an entity that has any of the indices:
- U.S. citizenship;
- the country of birth of the USA;
- id issued by a U.S. authority;
- tax residency in the US.
What are the indices of the US person (individuals)?
For pre-existing (non-cumulative) customers:
- the country of birth of the USA;
- U.S. citizenship;
- U.S. tax residency;
- the country of the U.S. home/residence/correspondence address;
- the country issuing the U.S. ID;
- landline/mobile phone located in the USA;
- permanent instructions for transferring funds to an account located in the USA;
- empower a person on account who has their address (domicile, residence/or correspondence) in the US.
For newly enrolled (non-cumulative) customers:
- U.S. citizenship;
- the country of birth of the USA;
- U.S. tax residency;
- the country issuing your U.S. ID.
Having one of these clues does not mean that an individual/legal entity is a US Person/ENTITY, but only that a more thorough analysis is required.
Which countries does the U.S. comprise in terms of FATCA?
- United States
- Minor remote U.S. islands
- Guam
- Northern Mariana Islands
- Puerto Rico
- U.S. Virgin Islands
- American Samoa
What is the Taxpayer's ID Number ("TIN/SSN")?
Taxpayer Identification Number (TIN) is the tax identification number assigned to a person who is used by the IRS (U.S. Tax Authority) in administering tax laws. It is issued by the Social Security Administration (Social Security Number SSN) or by the IRS.
What does the Employer Identification Number EIN mean?
Employer Identification Number (EIN) is the tax identification number of a
natural persons or of another person (whether or not he is an employer). The terms Employer Identification Number and Identification Number refer to the same number.
What forms will need to be filled in?
Banca Transilvania makes available, in the territorial units, on the bank's website or by telephone request to the Call-Center, the forms necessary to be filled in according to fatca provisions (W-9, W-8BEN, W-8BEN-E). They can also be found on the IRS website.
What does form W-9 mean?
Form W-9 represents the Request for Tax Identification Number, with the purpose of requesting the tax identification number (TIN) of the taxpayer. It is used exclusively by U.S. persons, natural or legal persons.
What does the W-8BEN form mean?
Form W-8BEN aims to identify non-US beneficial owners of accounts and transactions and is used exclusively by individuals. Legal entities must use Form W-8BEN-E.
What does form W-8BEN-E mean?
Form W-8BEN-E is used to identify non-US legal entities or Foreign Financial Institutions (FFI) that are the beneficial owners of accounts or transactions. It is used exclusively by legal entities or Foreign Financial Institutions, while individuals must use Form W-8BEN.
What is FDAP Income (Fixed or Determinable Annual or Periodic Income)?
FDAP Income for FATCA purposes is fixed or determinable income annually or periodically, except for gains from the sale of real estate or personal property (including market discount and option gains, but not including the discount on the initial issue). This category includes, for example, dividends, interest, pensions and annuities, alimony, compensation for personal services, rents, other than gains from the sale of real estate, copyright, etc.
US Source FDAP represents any income from US source that falls within the definition of FDAP Income.
What does Non-Financial Foreign Entity ("NFFE") mean?
NFFE means a legal entity outside the US that is not a financial institution. NFFE are divided into two categories:
- NFFE assets= entities engaged in active or business transactions (production, industry, non-financial service, etc.) where less than 50% of gross income in the previous calendar year is passive. This is not a FATCA status.
- Passive NFFE, are those entities that have a passive income of more than 50% of gross income (such as dividends, interest, rents, royalties, annuities). This is an indication of a FATCA status. However, only those entities that have as their beneficial owner (controlling persons) a citizen or resident of the United States are entities that have FATCA status.
What does Disregarded Entity mean?
In the case of individual enterprises and authorized individuals, the FATCA classification assigned to the person who owns the business will also be attributed to his business.
Am I a resident legal entity client and have I been notified that I have to fill in the FATCA forms?
This situation may occur when at least one of the beneficial owners / legal representatives of your company presents the FATCA index.
I am an individual customer before 30.06.2014 and I was notified that I present the FATCA index. I want, by proxy, the addition of an authorized natural person. What formalities do I have to complete?
If the power of attorney provides full rights for the authorized person, then it will be necessary for him to fill in form W9: Annex No. Code 28 a). Otherwise, you need to fill in this form.
I am a resident individual client, with an account opened at Banca Transilvania before 30.06.2014. We have authorized on the account a foreign citizen with dual citizenship – Romanian and American. What formalities do I have to complete?
The formalities required to be completed are:
- Completion of the Declaration of citizenship / additional tax residency (if you have double citizenship / tax residency)
- Filling in the W8-BEN Form : Annex No. Code 28 c)
How can I find out more details?
Additional details can be obtained by accessing the following sites:
http://www.irs.gov/Businesses/Corporations/Foreign-Account-Tax-Compliance-Act-FATCA
http://www.treasury.gov/resource-center/tax-policy/treaties/Pages/FATCA.aspx