The Foreign Account Tax Compliance Act ("FATCA") is a US tax legislation which was enacted in March 2010 to prevent and detect US tax evasion and improve taxpayer compliance. FATCA is focused on strengthening information reporting and withholding compliance with respect to US persons that invest through, or in, non-US entities, such as Bulgarian resident financial institutions.
The FATCA Intergovernmental Agreement (“IGA”) between Bulgaria and U.S. government was ratified by the Bulgarian Parliament on 11 June 2015 with effective date 30 June 2015, and published in the State Gazette on 17.11.2015. As a result, Bulgarian financial institutions, such as Central Cooperative Bank AD, are required to comply with the relevant provisions of the Bulgarian - U.S. IGA, such as, for example:
- Register on the Internal Revenue Service ("IRS") FATCA internet portal and obtain a Global Intermediary Identification Number ("GIIN").
- Employ enhanced due diligence procedures in order to identify, document and report on all US persons to local authorities.
- Undertake the responsibility of withholding or reporting information upstream for withholding purposes in case of any payments relating to US-sourced income where the payment is made to non-FATCA compliant payees.
Central Cooperative Bank AD intends to fully comply with all FATCA provisions in line with the FATCA provisions of the Bulgarian - U.S. IGA. As such Central Cooperative Bank AD has registered with the U.S. Internal Revenue Service (IRS). The IRS has assigned the following Global Intermediary Identification Number (GIIN) to Central Cooperative Bank: