In General
In 2010, FATCA legislation was enacted in the United States and referred to the tax compliance of foreign accounts. Under the relevant provisions, persons who are taxable in the US and at the same time hold accounts in foreign financial institutions may be requested to file tax documents and to be taxed in the US.
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 Romanian government has entered into a bilateral agreement with the US government on the implementation of FATCA rules (IGA1). This agreement was incorporated into the Romanian law by virtue of Law 233/2015 on Tax Compliance of Foreign Accounts. In accordance with this legislation, Romanian financial institutions:
- are requested to report the accounts of their customers who are US tax residents to the competent Romanian tax authority every year.
- may withhold and pay tax at a rate of 30% to the IRS for specific payments and transactions in the event that the customer is deemed non-cooperative.
FATCA Implementation
The Romanian Tax Procedure Code (Law 207/2015) enforced as of 01.01.2016, including also the FATCA related provisions, as transposed in the local legislation, subsequently amended through Government Emergency Ordinance 102/2022 and Government Ordinance 16/2023 to update the legislative framework for reporting and tax due diligence for FATCA purposes.
Financial institutions’ relevant obligations include:
• The selection of data and specific information about customers who are / may be U.S. tax residents.
• Transmission of this information to the competent Romanian tax authorities on an annual basis.
Required Information
The Romanian tax authorities exchange with the US tax authority specific data of liable customers, such as:
- Full name / Company name
- Address
- Tax identification number (TIN)
- Account details and balance
- Investment income (including interest, dividends, capital gains, etc.)
Customer’s Eligibility for FATCA
In order to determine your eligibility 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:
- The US Internal Revenue Service (IRS: https://www.irs.gov/).
- The website of the Romanian tax authority: Link-uri utile (anaf.ro)
- Your tax advisor.
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 fulfillment of Viva Payment’s legal obligation in accordance with the applicable legal framework governing FATCA. As for the processing of your personal data by Viva Payment in accordance with EU Regulation 2016/679 (General Data Protection Regulation) you may refer to Viva Payment’s Privacy Policy.