In General
FATCA was initially introduced by the United States (‘US’) in 2010 as part of the Hiring Incentives to Restore Employment – HIRE Act with the purpose of reducing tax evasion. It was then adopted into local law in many jurisdictions worldwide, including Ireland.
FATCA requires Financial Institutions (‘FIs’) outside the US (referred to as Foreign Financial Institutions (‘FFIs’) to review, maintain and report information on certain financial accounts either directly or indirectly to the US Internal Revenue Service (‘IRS’).
Liable Persons
If you are a U.S. citizen or permanent resident or have dual citizenship and you have income even from activities outside the US, you may be taxable in the US and you may need to file tax documents with the IRS.
The FATCA Legal Framework
The Irish government has entered into a sharing a bilateral agreement with the US government on the implementation of FATCA rules. The provisions implementing Ireland’s IGA are set out in:
- Section 891E of the Taxes Consolidation Act (“TCA”) 1997, which provides Revenue with the power to make regulations necessary for implementing the full terms of Ireland’s IGA.
- Financial Accounts Reporting (United States of America) Regulations 2014 (S.I. No 292 of 2014), as amended by Financial Accounts Reporting (United States of America) (Amendment) Regulations 2015 (S.I. No 501 of 2015) and
- Financial Accounts Reporting (United States of America) (Amendment) Regulations 2018 (S.I. No 19 of 2018);
- Guidance on the application of FATCA in Ireland was issued via Tax and Duty Manual Part 38-03-22: Guidance Notes on the Implementation of FATCA in Ireland.
In accordance with this legislation, foreign financial institutions:
- are requested to report the accounts of their customers who are US tax residents to the US Internal Revenue Service (IRS).
FATCA Implementation
Financial institutions’ relevant obligations include:
- Conduct due diligence to identify reportable accounts.
- Report information related to the accounts and their account holders to the competent Irish tax authorities on an annual basis.
Required Information
The Irish tax authorities exchange with the US tax authority specific data on reportable accounts, such as:
- Full name / Company name
- Address
- Tax identification number (TIN)
- Date of Birth for individuals and controlling persons
- Account details and balance
- Payments on Accounts
Customer Due Diligence for FATCA
In order to determine if your account is reportable for FATCA, you may be requested to complete special forms and provide supporting documentation.
Useful Information for FATCA
Considering that we cannot provide you with tax advice, for more information about FATCA you may consult:
Collection and Processing of Your Personal Data Within the Framework of FATCA
Your relevant information already at our disposal or collected by us through the self-certification documents is forwarded to the competent tax authorities for the fulfilment of Viva Payments' legal obligation in accordance with the applicable legal framework governing FATCA. As for the processing of your personal data by Viva Payments in accordance with EU Regulation 2016/679 (General Data Protection Regulation) you may refer to Viva Payments' Privacy Policy.