Central Cooperative Bank FATCA
Foreign Account Tax Compliance Act (FATCA)
The Foreign Account Tax Compliance Act (FATCA) is a U.S. tax law passed in March 2010 to prevent and detect non-payment of taxes in the United States of America and to improve the tax discipline of U.S. taxpayers. FATCA focuses on improving the reporting of information and compliance with the withholding tax obligation vis-?-vis U.S. entities investing through or in non-US companies such as Bulgarian financial institutions.
The FATCA Agreement between the governments of Bulgaria and the United States of America was ratified by the National Assembly of the Republic of Bulgaria on 11 June 2015, became effective on 30 June 2015 and was published in State Gazette on 17 November 2015. As a result, the Bulgarian financial institutions, in particular Central Cooperative Bank AD, are required to comply with the relevant provisions of the Intergovernmental Agreement entered into by and between Bulgaria and the USA, such as:
- To register on the Internal Revenue Service (IRS) FATCA Internet portal and obtain a Global Intermediary Identification Number (GIIN).
- To apply advanced due diligence procedures to identify, document and report all U.S. persons to local authorities.
- To assume responsibility for reporting information on withholding tax compliance to tax authorities for purposes of taxation in the case of payments related to income from a U.S. source where the payment is made to beneficiaries who do not meet the FATCA requirements.
Central Cooperative Bank AD intends to fully comply with all FATCA provisions in accordance with the provisions of the Bulgaria - USA Intergovernmental Agreement on FATCA. As a financial institution adhering to FATCA, Central Cooperative Bank AD has registered with the U.S. Internal Revenue Service (IRS).
Central Cooperative Bank AD has been assigned the following Global Intermediary Identification Number (GIIN) by the U.S. Internal Revenue Service: DZXMV9.00000.LE.100.
Notice dates 23 June 2017
In connection with the provisions of Section IIIa "Automatic Exchange of Financial Information in the Field of Taxation" of the Tax Social Security Procedure Code (TSSPC) of the Republic of Bulgaria, Central Cooperative Bank AD informs all its current customers to use the opportunity, if not already done so, to submit to the Bank, as soon as possible, a blank declaration which should statutory contain:
For customers - natural persons:
(a) name;
(b) place of residence;
(c) date and place of birth;
(d) any jurisdiction where the person is a resident for tax purposes;
(e) tax registration number in any jurisdiction where the person is a resident for tax purposes;
(f) any citizenship the person holds;
(g) obligation to notify of any change of circumstances;
(h) responsibility for declaring false data;
(i) confirmation of having been notified that the information under Art. 142b (1) may be subject to automatic exchange of financial information;
(k) date and signature of the person;
For customers - legal entities:
(a) name;
(b) address;
(c) tax registration number in any jurisdiction where the entity is a resident for tax purposes;
(d) any jurisdiction where the entity is a resident for tax purposes;
(e) determining whether the entity is a designated U.S. person;
(f) determining whether the entity is a financial institution and its status;
(g) determining whether the entity is regularly traded on a securities trading venue or is a related entity with such an entity;
(h) determining whether the entity is a public entity, an international organization or a central bank;
(i) determining whether the entity is an active or passive non-financial entity;
(k) where the entity is a passive non-financial entity - name, address, date and place of birth and the tax number of all controlling persons, as well as their functions;
(l) obligation to notify of any change of circumstances;
(m) responsibility for declaring false data;
(n) confirmation of having been notified that the information under Art. 142b (1) may be subject to automatic exchange of financial information;
(o) details of the person authorized to sign the declaration on behalf of the entity;
(p) date and signature.
Pursuant to Art. 142y (1) and (2) TSSPC, the Bank shall not open a new account of a person who refuses to provide a declaration and/or documentary evidence thus making it impossible for the financial institution that provides the information to comply with its obligations to perform a complex inspection and submit information under this section, respectively, the bank may close an account if the account holder refuses to provide a declaration or documentary evidence thus making it impossible for the financial institution that provides the information to comply with its obligations to perform a complex inspection and submit information under this Code.
With regard to cases where the customer is represented by a proxy, the declaration should be signed by the customer-natural person, respectively by the legal representative (legal representatives in case of joint representation) of the customer-entity, or by the natural person controlling a passive non-financial entity, and the signatures of the declarants must be notarised.
The terms used herein should be interpreted in accordance with the provisions of the TSSPC.