FATCA (Foreign Account Tax Compliance Act) was passed and came into force on March 2010, in support of United States tax authorities to prevent tax evasion on income from investment, assets and financial tools in the financial institutions and financial companies outside the United States; The financial institutions and financial companies outside the United States do not comply will be subject to 30% withholding income applicable to income derived from the United States, including interest, dividends, income from the sale or liquidation of the earning asset/dividend in the United States, started from July 1st 2014 AND apply 30% withholding tax on intermediate/transition payments from any compliant financial institutions since January 1st 2017, at a disadvantage in financial relations with American credit institutions as well as financial institutions complying with FATCA.
On May 05th 2014, with the completion of the registration for Global Intermediary Identification Number (GIIN code) at the request of Anti Money Laundering Department in Banking Inspection and Supervisory Agency, the State Bank of Vietnam stated in Official Letter No. 1118 / TTGSNH7 dated April 24th 2014 regarding a set of guidelines relating to FATCA's compliance given by Anti Money Laundering Department in Banking Inspection and Supervisory Agency, the State Bank of Vietnam, VietinBank and its subsidiaries became a financial institution complying with FATCA but not regulated by the IGA agreement, with FATCA GIIN code of 5D5A48.00000.LE.704
VietinBank and its subsidiaries (with capital owned by VietinBank over 50%) commit to comply with the FATCA requirements, and shall establish and employ necessary solutions to meet the requirements of the act in Know Your Customers, classification of taxation and withholding objects, and report the incomes of FATCA’s objects.
