FATCA

Foreign Account Tax Compliance Act ("FATCA")

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:
DZXMV9.00000.LE.100.

 

23.06.2017

With regard to the provisions of Section IIIа “Automatic exchange of financial information in the field of taxation” of the Tax Insurance Procedures Code /TIPC/ of the Republic of Bulgaria, Central Cooperative Bank Plc informs all its present clients to use the possibility, in case they have not done it, to submit to the Bank, as soon as possible, the declaration according to a sample, which according to the effective legislation contains:

For clients individuals:

а) name;

b) address according to place of residence;

c) date and place of birth;

d) any jurisdiction, in which the person is a local person for tax purposes;

e) tax number for any jurisdiction, in which the person is a local person for tax purposes;

f) any citizenship of the person;

g) obligation for notification upon a change in the circumstances;

h) responsibility for declaring untrue data;

i) confirmation for notification that the information under Art.142b(1) may be subject to automatic exchange of financial information;

j) date and signature of the person;

 

For clients entities:

а) identification;

b) address;

c) tax number for any jurisdiction, in which the person is a local person for tax purposes;

d) any jurisdiction, in which the person is a local person for tax purposes;

e) determining whether the entity is not a certain American establishment;

f) determining whether the entity is a financial institution and its statute;

g) determining whether the entity is regularly traded at a trading venue for securities, or is an entity related to such entity;

h) determining whether the entity is a state entity, an international organization or a central bank;

i) determining whether the entity is active or passive non-financial establishment;

j) when the entity is a passive non-financial establishment, the name, address, date and place of birth and the tax number of each controlling person, as well as his/her functions;

k) obligation for notification upon a change in the circumstances;

l) responsibility for declaring untrue data;

m) confirmation for notification that the information under Art.142b(1) may be subject to automatic exchange of financial information;

n) data of the person, who signs the declaration on behalf of the entity;

o) date and signature.

 

According to Art. 142x, para. 1 and 2 of TIPC the Bank does not open a new account in the name of a person, who refuses to present a declaration and/or documentary evidence and this results in an impossibility for the financial institution, providing the information to perform its obligations for the performance of a complex check and presenting information according to this section, respectively, the Bank may close the account, if the account beneficiary refuses to present a declaration or documentary evidence and this results in an impossibility for the financial institution, presenting information to perform its obligations for the performance of a complex check and provision of information according to this code.

 

In the cases of representation of a client via an authorization the declaration shall be signed by the client – individual, respectively by the legal representative /the legal representatives in the cases of collective representation / of the client – an establishment or by an individual, who controls a client - passive non-financial establishment, whereas it is necessary the signatures of the declaring persons be certified by a notary public.

 

The terms, used in the present document shall be interpreted in compliance with TIPC.

 


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